Daily Management Review

VW's Five-Year Plan Calls For Accelerating The Transition To Electric Vehicles


VW's Five-Year Plan Calls For Accelerating The Transition To Electric Vehicles
According to a five-year investment plan presented by management to the supervisory board on Friday, Volkswagen will accelerate its transition to electric vehicles and rethink its software strategy.
Without going into further detail, the statement said that executives talked about how to redesign the German group's production network to hasten the transition to cleaner driving.
Volkswagen has been examining ways to improve a software strategy that has been beset by delays and cost overruns. Its brands include premium Audis and Porsches as well as mass-market VWs and Seats.
The company's annual media conference will be held on March 14 and will include a full breakdown of everything that was discussed.
Board members were expected to discuss whether to build a new plant for the Trinity electric sedan at the meeting on Friday, according to reports earlier on Friday. The VW brand chief had stated in December that a decision would be made this month.
The plan, developed under former CEO Herbert Diess, was not mentioned in Volkswagen's statement, nor was it mentioned whether the company would produce the new car at its main Wolfsburg plant, an idea executives floated at the end of the previous year.
According to German business newspaper Handelsblatt, which cited unnamed sources, the board was also expected to discuss which new models could be produced at Volkswagen's Hannover plant after the production of the VW Bus 6.1 comes to an end, as well as its Osnabrueck plant, which could be assigned a new Porsche model.
If the plant is not given a new model, employees fear that 1,000 jobs in Hannover could be at risk, the newspaper reported, citing sources close to the workforce.
A works council representative denied the Handelsblatt report, claiming that jobs in Hannover were secured by a contract with the company through 2029. The spokesperson assured that Hannover would have a workable solution.
The planning session was the first since Volkswagen and Porsche CEO Oliver Blume took over the company last autumn. The meeting was originally scheduled for November, but Handelsblatt broke the news first.
Since taking over, the CEO has streamlined the automaker's operational plans, a marked departure from Diess, who was known for his ambitious plans but was criticized by some, including the works council, for lacking a clear execution.