VW emissions scandal – Volkswagen boss Müller sets out completely new priorities for recovery
Source : VW emissions scandal – Volkswagen boss Müller sets out completely new priorities for recovery
The rising costs of its emissions scandal pushes Volkswagen into the red from the third quarter of 2015, although the firm features a plan to fight back
Volkswagen boss Matthias Müller says his company will emerge coming from its current emissions scandal “stronger than before” in addition to has set out a few priorities in turning the fortunes of the German a new around.
Unsurprisingly, Müller says his top two priorities are to rectify those cars affected by the emissions scandal in addition to 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 in addition to learn coming from This particular.”
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 which has a more decentralised structure. In addition to the personnel moves in addition to 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 design 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 types in addition to 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 in addition to management behaviour’ – with Müller noting in which improvements are necessary in how Volkswagen “communicates in addition to how This particular handles its mistakes”. Many have been critical of how slowly VW has appeared to communicate with an apologise to its customers, although Müller has stressed in which “we need a culture of openness in addition to cooperation.”
Beyond those priorities, VW is usually working on a completely new plan dubbed the completely new Group Strategy 2025. An evolution of the current Strategy 2018 plan, the completely new initiative will be unveiled in full towards the middle of next year. Müller said: “Many people outside of Volkswagen, although 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. This particular is usually the firm’s first quarterly loss in 15 years.
As a result of the €6.7bn (£4.8bn) the German a new 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 particular 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 additional 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 in addition to 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 edition on the Phaeton. The completely new design was confirmed for production earlier This particular month, in addition to will arrive as an all-electric rival to the Tesla design S.
The completely new car will “be the flagship of the brand’s profile over the next decade”, the company says. The Phaeton is usually required to reach production in 2020.
Revealing details of your vehicle’s specification for the very first time, Volkswagen said your vehicle will feature “a pure-electric drive with long-distance capability, connectivity in addition to next-generation assistance systems”.
Wolfsburg insiders with knowledge of Volkswagen’s future design plans say the electric Phaeton will share its platform architecture, drive system in addition to 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 in addition to reaffirm its environmental credentials among car buyers. VW traditionally invests around €10bn (£7.5bn) per year on research in addition to development alone.
Among the most radical decisions is usually an overhaul of the VW Group’s approach to diesel engines. coming from right now on, the group will only use modern diesel engines with selective catalytic reduction in addition to AdBlue injection in Europe in addition to the United States – the two regions most heavily affected by its emissions scandal.
Development in addition to modification of the group’s standardised MQB platform will also be accelerated, which has a focus on bringing a completely new generation of plug-in hybrid vehicles to market. VW says This particular wants to produce hybrids with greater range, as well as developing completely new mass-market electric vehicles which has a range of more than 186 miles. Alongside the completely new types, VW will also develop a completely new 48V mild hybrid system in addition to create more efficient petrol, diesel in addition to CNG engines.
Volkswagen will also create a completely new modular electric toolkit – dubbed MEB – which will be used across the VW Group brands. The toolkit be used for both passenger cars in addition to LCVs in addition to will be designed for all vehicle in addition to Centeng types. VW says the MEB toolkit will allow for “particularly emotional vehicle concepts”, in addition to 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 completely new standard with regard to connectivity in addition to 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 in addition to our core technologies a completely new focus in addition to 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 in addition to in giving our product range a completely new focus.
“We are working at top speed on these issues. The Volkswagen team has proved This particular stands united in addition to is usually fully focused on shaping the future. We have right now laid the further foundations for in which.”
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