Volkswagen is launching an aggressive new business strategy called Transform 2025+ in a bid to become a leader in e-mobility and clean up its image after Dieselgate.
The German car maker confirmed that it will cull low-volume, low-profit models, saving close to €2.5 billion (£2.13bn), to fund development of its future electric vehicle range. It refrained from revealing which models would be sacrificed, but recent cost-cutting measures, such as decreasing involvement in motorsport, showed how merciless this process can be.
The development of an e-mobility line-up forms the second of three phases for the Transform 2025+ strategy. The first, which will be complete in 2020, will involve VW restructuring and transforming its core business properties.
An early example of this restructuring includes the cutting of 30,000 jobs. Reported last week, it’s thought this money-saving method will play a big part in the brand’s financial recovery following the costly emissions scandal.
An electric focus