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VW bets on electric cars to recover

Thursday, June 16, 2016 - 01:41

Embattled German carmaker Volkswagen, hit by an emissions scandal, presents its “Strategy 2025.” As Hayley Platt reports, it follows a decision by U.S. authorities to give VW more time to reach a settlement

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Brave faces all round as Volkswagen's top executives delivered the group's new strategy. The aim - return the company to its pre-Dieselgate glory days. (SOUNDBITE) (German) VOLKSWAGEN AG, CHIEF EXECUTIVE, MATTHIAS MULLER, SAYING: "We plan to invest double digit billions by 2025. To finance this huge sum, we must and we will significantly improve operational excellence in the entire group. This means that we must become more efficient at virtually every link in the value chain." VW plans to streamline its components business - it currently employs almost 70,000 people in 26 plants. With 12 brands there's a lot of duplication. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "It leads to what's been described as huge inefficiencies and also many of the cars being over engineered. So unlike most of it's rivals which don't do it the Volkswagen way, any such restructure could save the company a great deal of money and a great more efficiency.' The German auto maker will also focus on cutting sales and administration costs. And plough the savings back into the faster growing areas of the market. (SOUNDBITE) (German) VOLKSWAGEN CHIEF EXECUTIVE, MATTHIAS MUELLER, SAYING: "By 2025, the Volkswagen Group is going to launch more than 30 fully electric vehicles and we expect that by then, we'll be selling about two to three million pure electric cars every year." VW wants to be a leader in 'green' transport. But after the emissions scandal restoring trust may not be easy U.S. authorities have now extended the deadline for a final settlement until the end of June. It's giving VW more time but that also prolongs the uncertainty.

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VW bets on electric cars to recover

Thursday, June 16, 2016 - 01:41