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Editor: John Mortimer
Thursday, 29 October 2015
VW: Five-point plan for recovery
Matthias Müller, Volkswagen, chairman of the
board of management, has unveiled a five-point plan to reinvigorate the company;
to focus on quality not “faster, higher, larger”.
“We have to look beyond the current situation and
create the conditions for Volkswagen’s successful further development,” said Müller.
He presented a five point plan that he “intends to
use so that Volkswagen remains one of the world’s leading automobile
manufacturers in the future”.
He declared confidence that “Volkswagen will emerge
from the current situation stronger than before”.
Müller’s top priority is for support customers
affected by the diesel issue with implementation of technical solutions set to
begin in January 2016.
Müller’s second priority is to systematically drive
forward and complete the investigation into what happened.
“We must uncover the truth and learn from it”, he
said. Auditor Deloitte has been engaged to help uncover the truth and Müller
said those responsible for what has happened must “face severe consequences”.
Müller’s third priority is to introduce new structures
in the Volkswagen Group, with greater decentralisation and more independence
for the brands and regions.
Müller said VW will focus on addressing cross-brand
strategies, leveraging synergies and ensuring that Group resources are used
“We will review in detail our current portfolio of
more than 300 models and examine the contribution that each one makes to our
earnings,” he declared.
As a fourth priority, Müller will “drive forward” a
realignment of Group culture and management behavior.
He noted that while the pursuit of perfection,
employee commitment and social responsibility in the Volkswagen Group must be
retained, changes are necessary in how VW communicates and how it handles
“We need a culture of openness and cooperation,”
The fifth priority is to transform Group Strategy
2018 into Strategy 2025.
“Many outside of Volkswagen, but also some of us,
did not understand that our Strategy 2018 is about much more than production
numbers. A lot of things were subordinated to the desire to be “Faster, Higher,
Larger”, especially return on sales.”
Müller said the point is not to sell 100,000 more
or fewer vehicles than a major competitor. Instead, the real issue is
qualitative growth. Müller announced that the cornerstones of the Group’s
Strategy 2025 will be developed over the coming months, and that it would be
unveiled mid-way through next year.