Volkswagen is accelerating transformation into software-driven mobility provider
Back in 2016, Volkswagen kicked off its far-reaching transformation and the industry’s biggest electric offensive with the TRANSFORM 2025+ strategy. With ACCELERATE Volkswagen now aims to transform itself into “the most attractive brand for sustainable mobility”.
Software integration to become a Volkswagen core competency
Integration of software into the vehicle and the digital customer experience will thus become core competencies of Volkswagen. To this end, Volkswagen is spearheading the development of the customer-centric digital ecosystem, with the ID. For this, Volkswagen has established the ID. These will enable the vehicle to remain up to date throughout its life cycle and become better and better with new functions. A fully networked fleet of over 500,000 vehicles is expected to be on the road in just two years’ time, through which Volkswagen will be able to transmit direct customer feedback to new functions.
Business model 2.0: new customers and additional sources of income
By turning the vehicle into a software-based product, Volkswagen is setting the scene for new, data-based business models aimed at lowering entry barriers to individual mobility while offering very attractive service packages for the customers. Volkswagen thus aims to generate additional revenue over the service life of the vehicle through charging and energy services, through software-based functions that customers can reserve as needed, or through automated driving.
The company will also make the structure of the vehicle portfolio much less complex. The vehicle will have virtually everything on board and customers can add desired functions on demand at any time using the digital ecosystem in the vehicle.
Clear plan for driving up profitability
The targeted operating margin of at least 6 percent is expected to be achieved by 2023 and also secured long term. To achieve this, Volkswagen is seeking to trim its fixed costs by 5 percent before 2023, increase factory productivity by 5 percent per year, optimize material costs by 7 percent and bring all regions into the black in the long term. In South America and the United States, Volkswagen is striving to break even in the current fiscal year. The company can now post a profit in North America with a decrease in sales volumes of around 15 percent and in South America with sales volumes down by as much as 30 percent.
Faster e-mobility expansion
Volkswagen plans to rapidly accelerate the global e-campaign once again: by 2030, the brand will increase the share of its all-electric deliveries in Europe to over 70 percent – double the previous planning target of 35 percent. To achieve this, Volkswagen will bring out at least one new BEV model every year. Plans for an electric car under the ID.3 are pushed up by two years to 2025.
Volkswagen will continuously optimize the Modular Electric Drive Toolkit (MEB) with improvements in acceleration, charging capacity and range. Volkswagen will also play to its strengths as a platform champion in the next generation of a high-performance all-electric drive toolkit for flat vehicles – the Scalable Systems Platform .
Mar 12, 2021 at 15:18