Introduction: Our strategy for tomorrow’s growth.
Self-driving systems, e-mobility, connected vehicle concepts and the momentum of the digital transformation – the automotive world is seeing evolutionary changes. Volkswagen Group, which recently went through tough times, has identified the epic dimensions of the challenges and is repositioning itself for the future with its brands and products.
Fundamental issues need visionary answers. In launching its future program TOGETHER – Strategy 2025, Volkswagen has kicked off the biggest process of change in its history. Its overarching vision is to become a world-leading provider of sustainable mobility. The path there will be dominated by harmonious coexistence and exchange as equals. For one reason: new times call for new forms of collaboration.
This website vividly illustrates in detail which elements shape the new Group strategy. Charts and interactive graphics explain the vision, mission and objectives of the new strategy and show the significance of the 16 Group initiatives in addition to the strategies of the brands, regions and functional areas. Background information and additional material is available for downloading.
With TOGETHER – Strategy 2025 Volkswagen is opening a new chapter in the Group’s history. Take the opportunity to be there right from the beginning!
The New Group strategy is not the work of external consultants. It came straight from the heart of our company.
Our VisionThe Volkswagen Group of the future
Cooperation: Exchange as equals.
Together The Volkswagen Group is sustained by the solidarity of its brands, by functioning networks of experts and by good relationships between people. The success of our Group stems from the advantage that each brand gains from this community.
Synergy The recipe for the success of our community is synergy. It is the basis of our economic success. It is our obligation to make effective use of all conceivable advantages associated with the Group.
Success We place the well-being of the brand community above the well-being of the individual brands. Our goal is the success of the whole. That is how we develop pioneering mobility concepts for future generations.
- The basis for our cooperation is mutual trust.
- We are GENUINE with one another.
- We work together in a STRAIGHTFORWARD and reliable way.
- We are OPEN-MINDED to each other.
- We work AS EQUALS.
- The right choice can only prevail over one dictated by power if rank, position and origin are not as important.
- We are connected in terms of business and friendship and we stand UNITED.
Strategies and Initiatives Overview of key elements
We must increase efficiency considerably – across the entire value chain and all brands.
Group initiatives Driver of change.
The objective of the Group’s second initiative is to develop a future-oriented vehicle and drivetrain portfolio, taking the corporate objectives and carbon compliance targets into account. By 2020, the portfolio in the growing SUV segment will initially be expanded by adding more than 20 models, with simultaneous development of electrified models. Development activities up to 2025 will focus on more than 30 new electric vehicles. At the same time, Volkswagen intends to systematically consolidate its conventional portfolio for specific markets.
The goal of the third initiative is to cut expenses in the architectures by 30% by 2025, simultaneously implementing comprehensive electrification as well as a focus on self-driving systems. The 30% target will be achieved by significantly reducing complexity in streamlined yet synergistic platforms without overlaps.
The economy segment in particular is experiencing a boom worldwide in terms of mobility. The goal of the fourth Group initiative is for the Group to enter into an increasing number of local partnerships to develop and offer economy products that are in conformity with market requirements. Objectives include better adaptation to the needs of customers in different regions and establishing competitive cost structures. Negotiations for the first partnerships are already underway.
The aim of the fifth initiative is to bring highly automated driving functions to market as a core competency from 2021. This involves private vehicles, shared mobility systems and commercial mobility providers. Under the direction of Audi, a company is currently being founded that will develop a Group-wide self-driving system. Strategic partnerships are also being explored.
The battery accounts for 20-30% of material cost in electric vehicles and will become a key component for product differentiation. This is the reason for building up expertise as battery technology in as one of Volkswagen’s strategic objectives. By 2025 Volkswagen Group, together with strategic partners, aims to become a technology leader in automotive traction batteries. For this, the Group will pool its battery cell and battery module expertise in a center of excellence. Intelligent partnering models will accelerate the enhancement of expertise and technological change.
The more digital and software-based components are used in vehicles, the more important it is for customers to be satisfied with these components. The objective of the Group’s seventh initiative is therefore to make Volkswagen one of the best companies worldwide from the perspective of user experience. The strategy centers on the development of a brand-specific design language for the user interfaces. Volkswagen is also focusing on developing universal design and development tools and on brand collaboration in the field of UX. The Group Future Centers in Potsdam, San Francisco and Beijing are the drivers of this strategy building block.
The Volkswagen Group is implementing the model line organization in its four core brands: VW, Audi, SKODA and SEAT; Porsche already implemented this form of organization several years ago. In appointing a new series manager, the Group is increasing the responsibility for the success of the vehicle projects. This will enable Volkswagen to improve cross-divisional project work, accelerate decision-making and cement the focus on results in the projects. Last but not least, it will strengthen the entrepreneurial spirit in the Group throughout all of the organizational units involved.
Around 80,000 employees at 57 sites worldwide – components are an integral part of the Group and have a central role in the engine-gearbox core competency in particular. That this remains the case in the face of new technological developments such as electrification is the task of the ninth initiative. Its goal is to develop a highly competitive cross-brand business model for components. Developing new areas of business is also part of this initiative.
Mobility services such as shuttle on demand and ride hailing services are growth markets and will become increasingly popular. The Group’s tenth initiative aims to ensure that the mobility company named MOIA that Volkswagen set up in 2016 becomes one of the leading providers of innovative transport services and scales profitable business models worldwide in the years to come. Strategic investments and partnerships are also planned for this.
The objective of the eleventh initiative is to make Volkswagen one of the three largest providers of efficient, comfortable mobility services worldwide by 2025. Its portfolio will include mobility on demand and vehicle on demand services and will be implemented across all brands. A cross-brand decision-making committee for the Volkswagen Group called the Group Digital Services Committee has already been set up for this purpose. In addition, different mobility services have been prioritized with appropriate accountability in the brands.
At Volkswagen, the digital transformation is being driven forward by the fourteenth initiative, which covers digital customers, digital products and the digital enterprise. Under the new strategy, more than a dozen digitalization projects have already been pushed in the focus areas of user experience, design, products & services, smart mobility, customer & business, Business 4.0 and Industry 4.0
In implementing the fifteenth initiative, the Volkswagen Group is creating a framework that takes a holistic approach to the different aspects of organizational development. A platform has been set up to connect activities across divisions, instigate new organizational approaches and anchor these in the Company in the long term. The aim of this initiative is to not only allow holistic stimulus for innovations, entrepreneurship and change, but also actively encourage this. In times of constant technological change, this will enable the Group to remain agile and competitive.
Improving operational excellence in all of the Group’s divisions is the aim of the Group’s twelfth initiative. The efficiency of capex and research and development costs in particular is to be enhanced; there is also potential to trim selling expenses and general and administrative expenses. Overall, the measures are expected to lead to significant savings and higher profits as early as 2020.
The goal of the thirteenth initiative is to make Volkswagen a competitive, financially sound mobility provider that focuses on its core business and uses its capital to the best advantage. For this, the Group’s business portfolio is being analyzed in detail and existing options are being examined. A standardized process for continuous evaluation of the Group’s business portfolio will also be developed.
In the sixteenth initiative, the planning round process is being integrated and adapted for the entire Volkswagen Group with the aim of closely dovetailing the Group and brand strategies with profit and financial planning. At the same time, improvements are being introduced in the planning process to reduce the planning effort and increase the quality of planning.
Functional areas Ideas from the heart of the company
Brands and regions For innovation, sustainability and profitability.
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