Volkswagen pins brand turnaround on electric cars and a ‘reorientation of the diesel strategy’
A renewed Volkswagen strategy will now see it focus heavily on establishing its environmental credentials as it pins a turnaround on creating best in class electric cars and clean exhaust emission systems.
At what it described as a “special meeting” of the newly-formed Volkswagen Brand Board of Management today (13 October), it culled its annual investment spend by one billion euros (£746m) a year to focus on electric vehicles and guaranteeing that its diesel vehicles will only be equipped with exhaust emissions systems that use “the best environmental technology”.
It comes as the brand continues to suffer under the weight of the damming news that it rigged emissions tests in as many as 11 million of its ‘clean diesel’ vehicles worldwide. It has since axed its chief executive and began a campaign to regain trust.
The savings from cutting the annual investment spend will go some way to paying the potential $18bn dollar fine the industry expects it to face in wake of the scandal.
Chief executive of the Volkswagen brand, Dr. Herbert Diess, said it will now tie its brand to “a reorientation” of the diesel strategy to feature cleaner advanced exhaust emissions systems as well as developing a standardised electric model.
“The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program,” said Diess.
“As soon as possible” all diesel-only vehicles in in Europe and North America will be fitted with AdBlue technology, which helps to reduce diesel emissions.
There will also be a major “development thrust” to focus on plug-in hybrid vehicles and other electric vehicle projects in the Group.
Finally, the next version of the luxury Phaeton saloon car will be electric.
“Together with my Board of Management colleagues and the entire team we are working at top speed on these issues. Time and again, the Volkswagen team has proved it stands united and is fully focused on shaping the future, particularly when times are tough. We have now laid the further foundations for that,” added Diess.