Ronny Hartmann / dpa
VW CEO Herbert Diess, the conversion of Volkswagen is going too slowly
VW executives should shake these words: At the “Global Board Meeting” of the VolkswagenGroup on January 16, 2020, CEO Herbert Diess warned that the automaker would lack “speed and courage” for “radical change of direction”. Volkswagen, so Diess, must convert to digital group – because the future lies “only there” and nowhere else. Has about the most important statements manager-magazin.de already reported, Here is the complete fire speech by Diess:
Speech by VW CEO Herbert Diess at the Global Board Meeting on January 16, 20
Ladies and gentlemen,
The world is on the move.
We live in an incredibly dynamic time, both politically and technologically. A turning point is ahead – of the dimension of the industrial revolution.
And Volkswagen is in the middle of the storm of the two largest transformation processes:
Climate change and the associated pressure to innovate for emission-free driving.
And digitization, which is fundamentally changing the automotive product.
Our group does not always have the best conditions to react quickly and consistently enough to these developments.
So far, we’ve not done badly. This is also recognized by market observers. In 2019, analysts have gained new confidence in our strategy.
Kepler Cheuvreux attested to us at the beginning of this year: “We think VW is the best positioned player in the industry to master the CO2 challenge.”
And Goldman Sachs said: “We expect VW Group to continue to prosper this year as a result of ongoing positive sales developments at VW brand, a pick-up in sales at Audi, and broadly flat margins.”
In the litigation area, we are gradually making the risks from the diesel crisis more manageable. We are experiencing tangible and measurable progress in corporate culture. I am pleased that we increased the integrity of the mood barometer by three points.
Our modern MQB-based model range in volume and the new Porsches, Audis, Lamborghinis and Bentleys convince the customers.
We improve the quality of our business. Sales and earnings grow faster than sales.
In China, we increased our market share by 1.4 percent in a rapidly declining market. A great achievement that hardly anyone would have expected us to do.
Congratulations to Stephan Wöllenstein and his team for their outstanding performance!
In South America we are back in the profit zone for the first time, and we have also turned our business in Russia. We significantly improved our earnings in North America and are aiming for breakeven this year.
Volkswagen Financial Services has had a record year in 2019, and the component has taken decisive steps in battery development and manufacturing.
At Audi, the e-tron got off to a successful start, development costs were reduced and a comprehensive cost-cutting program was launched.
Porsche has delivered brilliant numbers and cars again and has set an example with the Tycan.
Seat wins new and young customers with Cupra.
Skoda is in full swing and will introduce the new models in India, which is an important future market for us, at the beginning of February.
VW Commercial Vehicles has put the extremely important Ford cooperation on the track and Traton has completed the IPO.
We see positive trends at Bentley, Ducati, Bugatti and Lamborghini, especially Bentley is back in the profit zone.
The core brand Volkswagen has worked hard to further increase returns.
All in all: good developments.
But honesty also means that the storm is only just beginning.
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