Yahoo Autos Post-Diesel-Scandal VW Wants to Provide 'Mobility,' Not Cars
With the cost of its diesel emissions scandal climbing and with year-over-year sales down, how Volkswagen decides to change its strategy and move forward is incredibly important. And according to CEO Matthias Mueller, part of that change is going to involve becoming a "mobility provider," not simply a car company.
Automotive News reports that in a speech to the company's senior managers, Mueller announced he would introduce a new strategy in mid-June for making that transition.
"We want to lead Volkswagen out of the company's most difficult situation ever and shape it into a mobility provider," he said in his speech.
Chief Financial Officer Frank Witter gave more details in a letter to an investment fund manager Wednesday. Witter said one of the company's main goals to develop a strategy to handle the demands of increasingly connected vehicles and the need to develop autonomous technology.
Mueller has also said it now plans to focus on profitability, not sales volume. That's a major shift for a company that was previously so focused on increasing sales. Increasing profitability is going to mean limiting the number of models the group sells, as well as using resources more efficiently.
Last year, Volkswagen was caught using software in its diesel cars to cheat emissions tests. The scandal involves as many as 11 million vehicles and affected both Audi and Porsche models, as well.
