VW 

The new era of the automotive giants has arrived, VW 

Says was in a tough speech and with a set of alarming messages that the CEO of the Volkswagen Group addressed his senior colleagues in the administration after the global meeting of the conglomerate he heads. Speaking of the future of the group, which in recent years has led to the worldwide market in sales, Herbert Diess told him, according to Reuters, it is the time of the traditional brands has come to an end, the company that runs it has in speeding up the renovation to prevent turn-on of Nokia, the company that led the mobile phone market, and they have all but disappeared from the market for not have been able to modernize and continue to innovate.
For Diess, the short-term goals are to cut costs and increase revenues by investing in new business areas, such as autonomous and connected cars. In order to do this, VW has to solve the software and electronics problem affecting it, since the production of the ID.3, his first tram of the new wave, has suffered from some deficiencies at this level. For the CEO, the revenue to achieve the ends is to reduce complexity, increase productivity, especially in Germany, concluding that, above all, the group has to focus more on profit and less on sales volumes. And he gave an example: Bentley sold 10,000 vehicles, but with a zero profit margin and it would be preferable to market only 5,000 with a 20% profit margin.
He stated that he wanted the Volkswagen Group to jump from the current 91 billion stock market capitalisation to the 200 billion mark, and argued that, in order to achieve this, something had to be done quickly, because 'at the current speed it will be very difficult to get there'.
The CEO also revealed that part of the cost reduction will be achieved at the expense of reducing investments in solutions such as hydrogen fuel cells. According to Diess “ "electric cars to fuel cell will not be as competitive as battery electric ones during the next decade", so they will be divested. Similar treatment will have MOIA, the Department of the group that is dedicated to urban mobility services, which includes car-sharing.

Autonews