WOLFSBURG: Volkswagen needs to become significantly more efficient and optimise its portfolio to pay for massive investments it needs to transform itself in the wake of its Dieselgate scandal, its chief executive said on Thursday.
CEO Matthias Mueller said investments in the double-digit billions of euros would be needed by 2025 for the transformation, which would be funded by savings and portfolio measures, with all brands and businesses having to contribute.
Presenting its new strategy for 2025 ahead of what is expected to be a difficult annual shareholder meeting next week, Europe's biggest carmaker said it aimed to bring out 30 new electric vehicle models by 2025 as it transforms itself into a company focused on electrification and new mobility services.
"This will require us - following the serious setback as a result of the diesel issue - to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity," he told reporters at VW headquarters.
Volkswagen said it planned to bundle its components business, currently spread across 26 plants worldwide with 67,000 employees.
It also said it aimed to reduce its sales and administration costs to less than 12 percent of sales and targeted an operating return on sales before special effects of 7 to 8 percent by 2025, up from 6 percent in 2015.
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