Volkswagen: We need to change to avoid Nokia's fate

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Volkswagen: We need to change to avoid Nokia's fate

The car business needs urgent reform, says the Volkswagen boss, to keep up with the former leader's fate in mobile phones.

 

 

 

Volkswagen has one of the most ambitious plans in the entire automotive industry. The company says it will sell 22 million electric vehicles in total by 2028. At this point, the entire group will offer about 70 electric models. But to do so, VW will stop spending on fuel cell vehicles. Will it be enough?

It is unlikely because the Volkswagen boss thinks his company needs urgent reforms to keep it from the fate of Nokia, which has lost its global dominance, disregarding Apple's work.

The group wants to increase its market capitalization to 200 billion euros (from 91 billion to date) by updating its assets, lowering costs and expanding new technologies, one of the areas being car connectivity. The big race is with technology companies investing in autonomy and electric vehicles.

"The big question is: are we fast enough?", This rhetorical question is posed by Herbert Dyce. "If we continue at the current speed, it will be very difficult."

Electric cars are the way Volkswagen and others cope with increasingly stringent CO2 emissions standards.

"This is probably the biggest challenge Volkswagen has faced so far," referring to the manufacturer's plans to meet the new CO2 emission standards. It will be especially important to cut costs, especially in Germany. VW will suspend its fuel cell program because hydrogen cars will not be as competitive as battery cars. At least not in the next decade. VW will also cut costs for MOIA's mobile services division.

VW should also focus on profit, not volume. "Let's take Bentley as an example, they deliver 10,000 cars. To be completely honest, I would prefer 5000 deliveries and a profit over 20%. "

An interesting touch is Wood Mackenzie's analysis that VW will indeed become the largest manufacturer of electric vehicles, but will not be able to sell 22 million electric vehicles by 2028, but will reach only 14 million to sell. With 22 million electric vehicles, VW is expected to reach 53% of the global e-car market by 2028, while securing 57% of global battery production.