The Volkswagen brand will be launching 34 new models worldwide next year, including twelve SUVs and eight electric or hybrid vehicles.
“We mean business with e-mobility,” said Volkswagen COO Ralf Brandstätter. The brand will be investing €19 billion in future technologies through 2024, €11 billion alone in the further development of e-mobility. Readers will note the lack of a qualifying adjectives – oh say, how about profitable – as VW starts the biggest electric offensive in the automotive industry.
Next year the ID.31 goes on sale in the summer, followed by the ID.Next2, VW’s first electric SUV. Vehicles and the VW group are to achieve a carbon-neutral balance by 2050. CO2 emissions from production are to be halved by 2025. Ambitious and subject to the whims of bureaucrats in Brussels, Beijing and Washington.
The risky business plan was approved in 2019. It focuses in particular on further improvements in competitiveness and earnings power over the coming years. It also lays the groundwork for expanding the software expertise of the brand and the VW Group. The Car.Software (sic) organization will begin operating as an independent business unit in January 2020. By 2025, the in-house share of car software development and vehicle-related services is to rise from les than 10% today to at least 60%.
The “Pact for the Future” signed in 2016 is also claiming results. Some €2.6 billion of the planned €3 billion cost savings will be achieved by the end of 2019.
CFO Arno Antlitz said: “We therefore confirm our target of an operating return on sales of (meager – editor) four to five percent for the full year 2019 in a difficult market environment. As announced, we expect to generate cash flow from operating activities significantly in excess of one billion euros in 2019. Our financial targets for 2020 remain unchanged. Furthermore, we reaffirm our targets for 2022 of an operating return on sales of at least six percent and cash flow in excess of 2 billion euros.”
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