Volkswagen Reveals “TOGETHER — Strategy 2025,” Focus On Electric Vehicles

As part of its ongoing reaction to the fallout of the diesel emissions cheating scandal, Volkswagen Group recently revealed its new “TOGETHER — Strategy 2025” program.

The new program will reportedly see the company release more than 30 new all-electric vehicles over the next decade. The program calls for annual electric vehicle sales of 2 to 3 million in 2025 — representing a 20-25% share of the group’s unit sales that year.

Volkswagen concept

The program also apparently will involve a review and streamlining of the group’s modular architectures — with the intent being to reduce development complexity and improve profit margins. The group is still intending to expand and invest further into the North American and Chinese markets apparently — despite the recent plunge in sales in many regions.

“Volkswagen has always enriched the lives of millions of people all over the world with its brands and products (Author’s note: …And cardiovascular and respiratory diseases). Our aspiration is to continue that success story and play a leading role in shaping auto-mobility for future generations, too. 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,” commented CEO Matthias Müller at the program’s recent unveiling in Wolfsburg.

Volkswagen CEO


The press release provides more:

The new Group strategy comprises a raft of far-reaching strategic decisions and specific initiatives essentially aimed at safeguarding its long-term future and generating profitable growth. This is to be achieved by comprehensively transforming the core automotive business, rapidly establishing a new mobility solutions business, significantly increasing efficiency as well as strengthening innovation power and entrepreneurial mindset and approach in the Company.

…A further lever for transforming the core automotive business is to develop new competencies. The Group therefore intends to independently provide the resources necessary to address the future topic of autonomous driving and artificial intelligence. The aim is to license a competitive self-driving system (SDS) developed in-house by the end of the decade. In light of the rapid gains in market volume and unit sales of electric vehicles over the coming years, the Volkswagen Group is also to develop battery technology as a new competency. The strategic options for participating in the potential revenue stream associated with this and developing battery technology into a new Group competency will be carefully examined.

…The Volkswagen Group will resolutely pursue the future topics in both the passenger cars and commercial vehicles segments. For its commercial vehicles business, which currently comprises the Scania, MAN and Volkswagen Commercial Vehicles brands, the Group is reaffirming its strategic goal of creating a global champion. The plan is for Volkswagen Truck & Bus, as a multi-brand provider across the cycle, to become the most profitable company in the sector, with a significant presence in all key regions of the globe. These targets are to be achieved firstly through much closer cooperation between the commercial vehicles brands and, secondly, by enhancing the group’s overall performance as well as expanding its global footprint. New business models will also play a decisive role in this. In the medium term, the business unit will increasingly evolve from a purely commercial vehicles manufacturer into a provider of intelligent transportation solutions.

Unsurprisingly, part of the group’s new strategy calls for an entry into the on-demand mobility solutions market (Uber, DriveNow, Zipcar, Lyft, etc). The core of the group’s strategy in this market will be ride-hailing services, according to the press release. On that note, Volkswagen Group recently entered into a strategic partnership with the company on-demand mobility firm Gett.

There’s quite a lot more in the press release for those interested, primarily concerning financials and restructuring. A lot of fluff, but some relatively interesting bits as well (if one wants to spend the time). Check it out as well as Zach Shahan’s thoughts on the news here: “Volkswagen’s Tremendous Transformation To Electric Vehicles — Some Context & Commentary.”

About the Author

‘s background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy. You can follow his work on Google+.