VW boss Herbert Diess
According to the plans of VW boss Herbert Diess, China will in future play a much more important role for the German carmaker.
PekingChina should according to the plans of VW-Boss Herbert Diess play an even more important role for the German carmaker in the future. “The future of Volkswagen will decide on the Chinese market, “said Diess, who will personally take over the strategic leadership of the China business this month, on Monday in front of journalists in Beijing.
Diess explained that he has made China a top priority because of the major changes that are currently taking place in the world’s largest car market.
For many years, international carmakers would have brought their technology to the Chinese market from the outside. But now innovation is increasingly playing directly in China, where skills such as in e-mobility or in self-driving cars already “well-developed”. This is also the result of a clear plan by the Chinese leadership that is in the process of developing the country into an “international powerhouse for the auto industry”.
“We will build capabilities that we do not have today, especially in China,” said Diess. It would be necessary, for example, “much closer relationships” with Chinese technology companies. Volkswagen will continue its research activities in Germany not going back, which would endanger jobs. Instead, additional resources are to be built up in China.
Diess, who spent about 20 days in China last year, expects to spend about twice as much time in the People’s Republic in the future. First, he will work for the restructuring of the business on an overall strategy, to which details are to be announced in the current year. The daily business in China will be headed by Stephan Wollenstein. Jochem Heizmann, the former China board member, will retire in mid-January.
Industry check: 2019 will be the year of the drive change for the auto industry
Wollenstein announced on Monday that he was “confident” for further growth despite a currently weak market environment. Although the Chinese market as a whole declined for the first time in decades in 2018, the VW Group has gained market share. The introduction of new models will again lead to a sales increase in China this year.
In response to himself fast-developing market for e-cars In China, Volkswagen had already announced billions in investments in recent years. With subsidies for e-cars and restrictions on internal combustion engines, the Chinese government wants to reach at least five million cars with electric drive on China’s roads by 2020. Last year, it was estimated that around one million electric-powered cars were sold in China.