VW emissions scandal – Volkswagen boss Müller sets out brand new priorities for recovery

Sunday, October 16th, 2016 - autos, cars, motoring, news

Source : VW emissions scandal – Volkswagen boss Müller sets out brand new priorities for recovery

The rising costs of its emissions scandal pushes Volkswagen into the red from the third quarter of 2015, nevertheless the firm features a plan to fight back


Volkswagen boss Matthias Müller says his company will emerge via its current emissions scandal “stronger than before” along with also has set out several priorities in turning the fortunes of the German the around.

Unsurprisingly, Müller says his top two priorities are to rectify those cars affected by the emissions scandal along with also to investigate how the installation of the so-called ‘defeat device’ became so widespread. In a statement, he said: “Our customers are at the core of everything in which our 0,000 employees worldwide do.

“We must uncover the truth along with also learn via the idea.”

As well as investigating the matter internally, Volkswagen has also engaged an independent auditor to assess its findings. Müller has stressed in which those responsible will face severe consequences.

Beyond the immediate investigation, Müller says in which another of the VW Group’s top priorities will be to realign itself having a more decentralised structure. In addition to the personnel moves along with also group realignments already announced, Müller says in which “the key point is usually in which Group management will be decentralised to a greater extent from the future” – something designed to give the different brands from the group more independence in their own regions.

Hinting at a possible radical realignment of the brand’s future style portfolio – already known to be affected thanks to £750m in reduced spending per year – Müller said: “We will review in detail our current portfolio of more than 300 designs along with also examine the contribution in which each one makes to our earnings.”

Müller’s fourth priority is usually described as being ‘a realignment of the Group’s culture along with also management behaviour’ – with Müller noting in which adjustments are necessary in how Volkswagen “communicates along with also how the idea handles its mistakes”. Many have been critical of how slowly VW has appeared to communicate with an apologise to its customers, nevertheless Müller has stressed in which “we need a culture of openness along with also cooperation.”

Beyond those priorities, VW is usually working on a brand new plan dubbed the brand new Group Strategy 2025. An evolution of the current Strategy 2018 plan, the brand new initiative will be unveiled in full towards the middle of next year. Müller said: “Many people outside of Volkswagen, nevertheless also some of us, did not understand in which our Strategy 2018 is usually about much more than production numbers. A lot of things were subordinated to the desire to be “Faster, Higher, Larger”, especially return on sales.” Instead of sheer volume, says Müller, the focus of the plan will instead be on qualitative growth.

VW reports first loss for 15 years

Earlier today, VW reported a loss for the third quarter of 2015, as the costs of its emissions scandal continue to rise. the idea is usually the firm’s first quarterly loss in 15 years.

As a result of the €6.7bn (£4.8bn) the German the has set aside to cover the costs of rectifying vehicles fitted with its defeat software, Volkswagen has reported an operating loss of €3.48bn (£2.5bn) for the third quarter of This specific year, as well was a pre-tax loss of €2.52bn (£1.8bn).

Despite the news, shares in Volkswagen were up in Frankfurt.

In a statement, Volkswagen only refers to the scandal as the “diesel issue”, with Müller saying: “The figures show the core strength of the Volkswagen Group on the one hand, while on the various other the initial impact of the current situation is usually becoming clear. We will do everything in our power to win back the trust we have lost.”

The statement also notes in which, “because of charges related to the irregularities from the software used for certain diesel engines, we expect 2015 operating profit for both the Group along with also the Passenger Cars Business Area to be down significantly year-on-year.”

VW Group sales in September were down 1.5% year-on-year, while Group sales for the third quarter were down 3.4%, to 2.39m cars, less than Toyota recorded.

However, the firm has already set out its recovery plan, which hinges on a next-generation variation on the Phaeton. The brand new style was confirmed for production earlier This specific month, along with also will arrive as an all-electric rival to the Tesla style S.

The brand new car will “be the flagship of the brand’s profile over the next decade”, the company says. The Phaeton is usually anticipated to reach production in 2020.

Revealing details of your vehicle’s specification for once, Volkswagen said your vehicle will feature “a pure-electric drive with long-distance capability, connectivity along with also next-generation assistance systems”.

Wolfsburg insiders with knowledge of Volkswagen’s future style plans say the electric Phaeton will share its platform architecture, drive system along with also battery technology with the upcoming Audi Q6 e-tron – as previewed by the e-tron Quattro concept at the Frankfurt motor show.

Volkswagen will reduce spending by €1 billion (£750m) per year from the wake of the dieselgate emissions scandal, as well as refocusing its development plans as the firm seeks cut costs along with also reaffirm its environmental credentials among car buyers. VW traditionally invests around €10bn (£7.5bn) per year on research along with also development alone.

Among the most radical decisions is usually an overhaul of the VW Group’s approach to diesel engines. via at This specific point on, the group will only use modern diesel engines with selective catalytic reduction along with also AdBlue injection in Europe along with also the United States – the two regions most heavily affected by its emissions scandal.

Development along with also modification of the group’s standardised MQB platform will also be accelerated, having a focus on bringing a brand new generation of plug-in hybrid vehicles to market. VW says the idea wants to produce hybrids with greater range, as well as developing brand new mass-market electric vehicles having a range of more than 186 miles. Alongside the brand new designs, VW will also develop a brand new 48V mild hybrid system along with also create more efficient petrol, diesel along with also CNG engines.

Volkswagen will also create a brand new modular electric toolkit – dubbed MEB – which will be used across the VW Group brands. The toolkit be used for both passenger cars along with also LCVs along with also will be designed for all vehicle along with also Centeng types. VW says the MEB toolkit will allow for “particularly emotional vehicle concepts”, along with also will enable an all-electric range of 250-500km (155-310 miles).

Hinting in which the Group is usually also well on the way to developing purely autonomous vehicles, the statement also says: “A brand new standard with regard to connectivity along with also driver assistance systems is usually to be defined.”

Additionally, Volkswagen will accelerate its current efficiency programme. Company chairman Dr. Herbert Diess said: “The Volkswagen brand is usually repositioning itself for the future. We are becoming more efficient, we are giving our product range along with also our core technologies a brand new focus along with also we are creating room for forward-looking technologies by speeding up the efficiency program.

“We are very aware in which we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency program along with also in giving our product range a brand new focus.

“We are working at top speed on these issues. The Volkswagen team has proved the idea stands united along with also is usually fully focused on shaping the future. We have at This specific point laid the further foundations for in which.”

Read more on the Volkswagen emissions scandal:

Six things the firm could cut

Bugatti under threat as boss warns of ‘painful’ cuts

EA288 engine given all-clear

Blog – navel gazing at Volkswagen

Blog – Keeping up with pollution laws is usually not always easy for car makers

Blog – How Volkswagen can survive its emissions scandal

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