German automotive giant Volkswagen has announced its Transform 2025+ strategy this week, further detailing the company’s plans for the decade ahead.
At the forefront of Volkswagen’s goals for the next decade, and beyond, is to clearly position itself at the top of volume segments globally, and becoming a leader in electric vehicles.
The company has outlined three key phases of its plan, the first being a restructure of its core business and “completing a transformation across the entire value stream” from now until 2020.
Above: Volkswagen Atlas
During this stage, Volkswagen will rollout its SUV offensive, which has already started with the new Tiguan, along with positioning itself at the top of the volume segments across more markets. The company says it has already achieved this objective in China and Europe.
A key market for growth in this area is the US, where Volkswagen says it plans to “evolve” from a niche supplier into a profitable volume producer.
To do this, it will focus on large SUVs and limousines – two key segments in the country.
Above: Volkswagen Sport Coupe GTE concept
Phase two of the strategy will start in 2020 and continue through 2025, which will see a wide spread of electric models.
Volkswagen says it wants to play a key role in the “breakthrough of the electric car” by not focusing on niche products and rolling out models that will appeal to the majority of the automotive market.
Above: Volkswagen Budd-e concept
By 2025, Volkswagen wants to have a yearly sales volume of a million electric vehicles and be a world
market leader in automotive e-mobility.
In order to fund this electric offensive, the company will discontinue low-volume, low-earning conventional models and model variants, which should free up 2.5 million euros ($3.58 million) for this phase.
Alongside next-generation electric vehicles, Volkswagen plans to develop its own digital platform.
Above: Volkswagen’s latest infotainment system that will debut in the new Golf
By 2025 the company expects to have 80 million active users globally across its range of upcoming connectivity solutions, which is likely to also involve connected cars and infrastructure.
Through this venture, Volkswagen projects it will generate around one billion euros ($1.4 billion) in revenue by 2025.
Finally, phase three will take place between 2025 and 2030, a time where the company says will see a major transformation for the automotive industry.
Above: The 2018 Audi A8 will feature Level 3 autonomous technology
While details of this phase and what the forecast major transformation actually is, are largely unexplained, Volkswagen says it wants to achieve a leading role in the new world of mobility by 2030.
It’s likely the company is referring to the widespread adoption of autonomous vehicle technology, which has been predicted to occur around the 2025-2030 period.
Luxury subsidiary Audi has already confirmed the next-generation A8 limousine (above), due here in 2018, will feature Level 3 autonomous systems, capable of hands-free commuting at speeds of up to 65km/h.
Above: The 2014 Audi Prologue concept is expected to preview the Audi A9 due in 2020
Then, in 2020, the company will release the A9 flagship limousine, which will be all-electric and feature Level Four autonomous technology, which Ricky Hudi, Audi’s head of electric development, says “will be able to drive itself in many situations – not just on the motorway”.
Other objectives outlined by the German brand include a transformation of its corporate culture and organisation as a whole, while increasing sales and reducing costs.
This latest announcement comes after Volkswagen detailed its ‘Together – Strategy 2025‘ plan in June, which focused primarily on rolling out 30 new electric and electrified models by 2025.
Above: Porsche Mission E concept
Audi has also announced it will release an electrified version of each model it offers in the near-future, along with the e-tron all-electric SUV due before 2020, while Porsche is working on the production version of its Mission E concept.
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