VW’s CEO says traditional carmakers era is over

VW’s CEO says traditional carmakers era is over

January 17, 2020 0 By autotimesnews

As part of his recent interview, German CEO Herbert Diss said that the era of conventional automakers is already drawing to a close. To stay “in the game”, VW Group seeks to reduce costs and invest in new technologies.

The global auto industry is changing very, very fast. The American Ford will soon be engaged in the production of an electric crossover based on the Mustang. GM can resurrect the Hummer brand and produce electric SUVs under its auspices. Google is developing cars that are equipped with autonomous driving systems. This is a strange and interesting time – that is exactly what Herbert Diss, CEO of the German VW Group, said. According to him, his company will follow the path of the Finnish Nokia, if it does not adapt in time to modern realities.

Mr Diss expressed his doubts about VW’s ability to adapt to the fast-paced automotive industry, telling VW senior managers: “If we continue at our current speed, our group will not have a great future.” He added: “The era of classic automakers is over.”

 VW and other companies are investing in new automotive technology. In addition, VW and other automakers are facing tighter emissions and higher safety standards while creating autonomous, electric and plug-in hybrid cars.

 Part of VW’s plan to improve its position in the global automotive arena is to increase the market value of the entire concern from the current 91 billion euros to 200 billion euros. This means that the automaker will seek to reduce costs, reduce manufacturing complexity and invest in new technologies. VW can save money by moving most manufacturing plants to Germany, Diss said. The company will reduce the cost of R&D on fuel cells and reduce costs through mobile services.