Shaping mobility – for generations to come.
Volkswagen has always made individual and affordable mobility possible for millions of people. Under the new vision "Shaping mobility - for generations to come.” we are providing answers to the challenges of today and tomorrow with our sharpened TOGETHER 2025+ Group strategy. Our goal is to make mobility sustainable for us and for future generations. Our promise: With electric drive, digital networking and autonomous driving, we make the automobile clean, quiet, intelligent and safe. At the same time, our core product becomes even more emotional and offers a completely new driving experience. It is also becoming part of the solution when it comes to climate and environmental protection. In this way, the car can continue to be a cornerstone of contemporary, individual and affordable mobility in the future.
Presentation of the
VOLKSWAGEN Strategy 2025+
by CEO Dr. Herbert Diess
Four target dimensions
Our corporate brands are moving – with affordable city cars, functional light commercial vehicles or exclusive sports cars. This is part of our DNA. With our strong brands we want to offer mobility that gives people individual freedom and social participation, today and in the future. With our digital ecosystem, we bring our customers’ world into their vehicles. We want to inspire new customers and keep them loyal to us – because only loyal customers recommend us further.
For sustainable success, we need competent and committed employees. We want to promote their satisfaction and motivation through equal opportunities, an attractive and modern working environment and a sustainable work organization. This is based on an open, positive and cooperative culture, a high degree of diversity in the workforce and exemplary and inspiring leadership. These elements help us to retain employees at Volkswagen and attract the best global talents to enthusiastically work together on fully connected, sustainable mobility.
Role for the environment, safety and integrity
We find ourselves at a turning point: Climate change is one of humankind’s central challenges. Stopping global warming is an obligation for all of us. As the largest automobile manufacturer, Volkswagen assumes responsibility and leads the way. In order to protect the environment and implement the political guidelines, we are consistently focusing on electro mobility. By 2050, at the latest, the entire Volkswagen Group will be a CO₂-neutral company. Our highest principles include integrity, the observance of rules and laws, the safety of our customers as well as the open dealing with errors in order to remedy and avoid them in the future. We actively assume our responsibility for society: We conduct our business in a socially responsible manner, based on clear values.
In order to be successful in the new world of mobility, Volkswagen will become more transparent and agile, more efficient and more profitable. With our TOGETHER 2025⁺ strategy, we are building on our existing strengths - and at the same time vigorously addressing our deficits. Our goal is to exploit the full potential and synergies of our large, global Group with significantly greater focus and speed. Our aim is to set standards in our industry in terms of efficiency, productivity and profitability. And we aim to achieve market capitalization that adequately reflects the strength and future orientation of the Group and its brands.
Our values - the foundation of our strategy
We want Volkswagen to be a company with integrity through and through and to be respected in the best sense of the word.
To meet this requirement, we have created the Group-wide integrity and compliance program Together4Integrity (T4I for short). It bundles all the activities for integrity, compliance, culture, risk management and HR and thus creates the basis for our success. T4I is our common path towards a corporate culture that enables every manager and every employee to act with integrity and in accordance with the rules at all times and everywhere.
We have summarized our promises to our customers, shareholders, business partners and ourselves in seven key principles. They describe what the Group stands for in all its brands, companies and countries:
- We take on responsibility for the environment and society.
- We are honest and speak up when something is wrong.
- We break new ground.
- We live diversity.
- We are proud of the work we do.
- WE not me.
- We keep our word.
Strategy building blocks – the elements in brief
In order to exploit the full potential of our Group, the strategies of the brands, regions and functional areas must be optimally aligned with one another. Under the umbrella of TOGETHER 2025+, we have defined five modules as central work packages that ensure the success of our further developed strategy. Under the motto Focus & Speed, we are sharpening our activities and accelerating our actions.
Our main areas of action in five modules
Focused, lean, trustworthy
The Volkswagen Group has already taken important steps to streamline its structures and make decision-making processes more decentralized. But we still have potential - and want to constantly improve. In the "Best Governance" module, we address deficits in a structured and consistent manner: We streamline our committees, reduce bureaucracy and streamline Group administration considerably. We are systematically checking whether we are still the best owner for the various divisions. We are using a decarbonisation index to make our CO2 targets measurable and our progress transparent. And we are intensifying the dialogue with all key stakeholders in order to regain and further build trust.
Our goal: We form a focused, lean Group holding company that optimally manages its brands and continuously leverages synergies within the Group. Our stakeholders perceive Volkswagen as an efficiently managed, trustworthy, sustainable and transparent Group. As a company that creates value in every aspect and powerfully shapes mobility for us – and for future generations.
Efficient, profitable, sustainable
Volkswagen can only assume its responsibility towards all stakeholders, society and the environment in the long term if we are economically even more successful. In the “Best Performance” module, we set ourselves ambitious financial targets, work even harder than before on its implementation and make our progress transparent with a comprehensive set of KPIs.
We are substantially improving our Group-wide financial performance in order to achieve our target of a 7-8 percent return on sales (ROS) by 2025. We are working to sustainably increase the value of the company with a stronger focus on return on investment (ROI). By 2025, we aim to achieve a return on investment of over 15 percent for the Automotive Division. In addition to the key factor CO2, we also base our management of vehicle projects on the return on investment.
Our claim: Volkswagen will set standards in efficiency, productivity and profitability by 2025. We meet our forecasts and continually challenge the targets we have set ourselves. In this way, we strengthen the confidence of investors and the capital market in the Group. And in this way we create the basis for making powerful investments in our company, our employees and in mobility for future generations.
Best Brand Equity
Sharpened brands, full potential
The Volkswagen Group’s brand portfolio has grown strongly in recent decades. This has led to a high degree of complexity in brand and product management.
In the “Best Brand Equity” module, we are working on realigning and sharpening the brand portfolio. Based on the major future trends and changing customer needs, we aim to define the ideal brand portfolio for 2030. For each brand, we define the profile, brand mission and core competitors in a clear-cut manner. On this basis, we decide on the future design, products, services and appearance of each Group brand – based on the wishes and lifestyles of our customers. We intend to increase our regional profit pools in Europe, China and North America even more systematically on the basis of clear brand territories and orders. With consistent brand management, we are working to further increase our individual brand values.
We are convinced that even in the electric and digital age, strong and independent brands will be a key factor in purchasing decisions. Our Group brands will convince and inspire with a coherent portfolio of vehicles and mobility services. In this way, we create added value for our customers and for the company.
Software-Enabled Car Company
On the way to becoming a Tech-Company
Our brands have long set standards in technology, design and quality with their vehicles. They inspire customers and achieve economic success. That alone will not be enough in the future. Digitalization is fundamentally changing the car, the automobile is becoming a software product.
In the "Software-Enabled Car Company" module, we are therefore working to make software the new core competence of the Volkswagen Group. To this end, we are pooling our existing strengths and strengthening our position massively. We were the first automobile manufacturer to separate hardware and software development organizationally. We are developing a cross-brand software platform for vehicles and the Volkswagen Automotive Cloud. By 2025, all new vehicle models throughout the Group will run on our own software platform. It has the potential to set standards in the industry.
Our goal: By 2025, the Volkswagen Group and its brands will not only stand for the best vehicles, but also for exciting and superior digital products and services. With our hardware and software platforms, which we are opening up to third parties, we are the global scale champions in the automotive industry. With our digital ecosystem, we bring our customers’ world into the car – with the best user experience and mobility services that make everyday life easier and more enjoyable.
Versatile, integrity, strong leader
In order to be successful in the new world of mobility, we must make rapid progress towards an open, cooperative and integrated management culture.
In the “Excellent Leadership” module, we are creating the prerequisites for this: we are fundamentally restructuring our management development and qualifications. We systematize succession planning in order to have the right talents in the right positions at the right time. We want to significantly increase the diversity of our management team. That is why we are setting ourselves clear, measurable goals for more female and international managers.
The common goal: By 2025, Volkswagen will set an example for others with open, partnership-based, value-based leadership. Our management development sets standards. We live and reward entrepreneurship and future-oriented thinking every day. We live diversity at all levels.
Functional areas – Ideas from the heart of the company
Volkswagen Group Procurement sources products and services for the Group that provide optimum customer value using the best possible cost structures. The Procurement functional area aspires to be the world’s most efficient and attractive organization of its kind. Specific aims include gaining access to supplier innovations, leveraging Group-wide synergies and ensuring a supply chain that excels in all dimensions. A key element of this strategy is the active role played in the early stage of the project – the only way to actively manage costs, achieve price leadership in new technologies and ensure market-driven concepts. Volkswagen Group Procurement’s strategy is based on very highly qualified and motivated employees as well as a state-of-the-art, future-oriented organizational structure.
Customer Delight is the driving goal for Group Sales. It is the Sales’ mission to aim at creating unique and strong positions for Volkswagen’s brands, conquering new markets and addressing a broad segment of various customers. Key cornerstones of the Strategy are: Excellent Sales Organization, Effective Brand Portfolio Management, Outstanding Sales Performance and a Sustainable Growth. The Sales and distribution of innovative mobility – for customers globally – secures profitability long term and enables sustainable growth.
Acting as the financial navigator for sustainable growth, the Finance and Controlling functional area intends to make a contribution to the Volkswagen Group of the future. To ensure competitive profitability, liquidity and financial stability for the Group, this area counts on a strong team as well as reliable compliance and an effective risk management system. These elements are accompanied by partnerships with stakeholders based on trust, loyalty and openness. Stakeholders in turn can bank on neutrality, reliable standards and a focus on targets that invariably considers what is best for the Group.
K-I Integrity and Legal Affairs
The trust our customers continue to place in us and the perception of Volkswagen as an excellent employer are crucial for the Group’s success. The strategic objective of the Integrity and Legal Affairs functional area is therefore to anchor these factors as the basis for daily activities in the Group, thereby making a vital contribution to Volkswagen’s sustainable growth. This specifically entails safeguarding customers and staff against compliance risks and positioning the functional area as a competence center for integrity and legal affairs, data protection, compliance and risk management.
K-GE Research and Development
Technological innovations play a pivotal role in the design of pioneering mobility solutions with inspiring products and services that define the brands. Staff in the Research and Development functional area are aware of this huge responsibility. To generate sustainable growth while serving as an example in relation to the environment, safety, integrity and resource efficiency at the same time, Volkswagen relies here on an exceedingly efficient cross-brand development alliance. Characteristic features of this alliance are close networking among experts, collaborative working relationships on equal terms, an innovative working environment and selective pooling of development activities to leverage synergies and efficiencies throughout the Group.
Intelligent networking of people, brands and machines in global manufacturing and logistics is the vision of the Production functional area. Intelligently networked means that the strengths and potential of Group-wide production are combined and the resulting synergies are leveraged to make Volkswagen competitive and fit for the future. The strategic objective is to organize production as sustainably and productively as possible. This will be achieved through future-proof work structures, greater efficiency, intelligent processes and a versatile production network that anticipates future developments in the markets as well as in relation to competition, products, environmental issues and innovation. The strong alliance in the Volkswagen Group and the open, cross-brand exchange of ideas and information between all parties involved in the production process provides the basis for this continuous development.
Delivering outstanding quality and reliable mobility to customers worldwide is the strategic objective of the Quality Assurance department. As the “voice of the customer” the principle of dual control is relied on in critical company processes; products that are superior to those of the competition are developed within budget requirements. The department’s commitment to quality runs the gamut of current and future mobility solutions – vehicles as well as services. Last but not least, all markets will pay close attention to differing regional needs to make a substantial contribution to the Volkswagen Group’s sustainable growth.
K-S Human Resources
Positioning the Volkswagen Group as an excellent employer of the future is the strategic objective of the Human Resources and Organization functional area. Expert, enterprising staff form the basis for Volkswagen’s success, both today and tomorrow. To give all employees optimum conditions for delivering supreme performance, the human resources activities support individual development paths, diverse training opportunities and the organization of modern working environments. Increasing diversity, integrity, appreciation and respect is a key objective of the Volkswagen Group’s human resources strategy. The unifying framework for implementing this strategy is provided by an exemplary leadership and corporate culture that is shaped by team spirit and ingenuity.
K-FI Group Information Systems
Best-in-class IT solutions, enthusiastic users, progressive data protection and, not least, an extremely attractive working environment are the strategic objectives of the IT functional area in the Volkswagen Group. Mobility will be turned into an exciting experience at a digital level as well. The IT department also aims to add value in the future, thereby contributing to the Group’s sustainable growth. Through open, straightforward partnerships, the Group’s global IT expertise will be harnessed to advance innovation and ensure reliability. Effective protection of digital information has top priority at all levels.
Brands and regions – For innovation, sustainability and profitability.
The TRANSFORM 2025+ strategy is the program approved by the Board of Management and Supervisory Board to get the Volkswagen Passenger Cars brand back on the road to success. The path to this goal has three stages, with intermediary milestones in 2020 and 2025. The strong vision entitled “moving people forward” is supplemented by a mission that sums up the strategic goals as follows: “We will bring the future into production – as the world market leader for electric mobility. We will advance society and our customers’ business – with ingenuity and passion. We will bring our strengths to the job – to shape our transformation together.”
The automotive industry is experiencing radical upheaval. The Audi Group is likewise in the process of redefining itself for the future and playing an instrumental role in shaping the transformation as we head into a new age of mobility. Step by step, the Company is implementing its strategy.
“We deliver solutions created in Barcelona to make mobility easy.” Our Mission is at the base of SEAT’s Strategy 2025. In a world in which technology will enable totally clean, safe and shared mobility, our competitive advantage will be built on the ability to provide the right products and services at the right time and at the right place, in the most efficient way.
Our SEAT role into the VW Group: we are the entry gate for the new generations. Because we have already the youngest customer base in Europe and the highest conquest rates of competitors customer. Our high-quality and competitive manufacturing costs and our short development cycles are an opportunity for the Group.
Our plan is based on four main levers. First, we will continue strengthening the brand by stressing distinctiveness and uniqueness of SEAT´s proposition. Second, we will globalize our business to achieve the necessary scale and balance risks. Third, we will reengineer our business model to ensure sustainability and facilitate investments in key future technologies. Fourth, we will transform our organization, building internally the required competences and adapting structure and processes to a fast changing environment. Our people and the way they work together, we believe, are key to move SEAT to the next level.
Shaping the future of the sports car – this is the theme of Porsche’s Strategy 2025. The sports car of the future will blend the history and values of the Porsche brand with innovative technologies, while at the same time ensuring sustainability. In achieving this, topics such as e-mobility, digitalization and connectivity will play an important role. Embracing these topics will allow Porsche to shape the exclusive and sporty mobility of tomorrow. The company’s main objective is to achieve value-generating growth. Only by achieving such growth can it make sustainable investments in innovative technologies, new products and its workforce. Porsche wants to excite customers and is also aiming to consolidate its reputation as an excellent employer and business partner that fulfills its social and environmental responsibilities. And the return needs to be sufficient too. Porsche Corporate Strategy
Clever ideas for individual mobility have advanced the Škoda brand for over 120 years. Škoda’s task now is to use this expertise to create the best mobility solutions for the future. The brand strategy builds on an outstanding team that aims to inspire existing and future customers alike – families, enterprises, commuters or simply people who enjoy mobility to the full – with pioneering, sustainable products and services.
We at Volkswagen Commercial Vehicles have always thought about mobility in ever bigger ways. Our future is clear: We transport success. With our GRIP 2025+ strategy we aim to carry on doing what we’re good at and to develop new areas of business. In this way we become European market leader for business customers. We become leading provider of mobility and transport as a service. And we strengthen our position as premium supplier for families and leisure pursuits. This new strategy is underpinned by cost discipline and a powerful team. To that end we are all working together on this – transforming not just our product portfolio, but ourselves as well. We are making mobility cleaner, more intelligent and more sustainable!
Volkswagen Group Components
SUPPLYING GLOBAL MOBILITY – This is the vision of Volkswagen Group Components, which, since 1 January 2019, has been pushing forward with the development and manufacturing of strategic components for the Group’s vehicle-producing brands, as an independent corporate business unit under the umbrella of Volkswagen AG.
The ONE MISSION 2025 strategy programme and its four target dimensions (Customer & Product, People, Responsibility and Excellence) have evolved from this vision. Specific projects have set in motion a transformation towards electric mobility, bundling tasks across brands to form an independent business unit, and optimising the existing core business. In this way, the future has been shaped for our approximately 80,000 employees in over 60 plants in five business areas: Engine and Foundry, Gearbox and Electric Drive, Chassis, Seats and Electric Mobility.
Establishing the world’s leading truck and bus business as a “Global Champion” and inspiring customers as an innovation leader is the aim of the TRATON GROUP with its SCANIA, MAN, Volkswagen Caminhões e Õnibus and RIO brands. New goals, new paradigms – this is how the optimum for the Group will prevail in thinking. In technological terms, the cross-brand work on shared platforms will create synergies for the core components of the drivetrain. At a cultural level, trust, responsibility and respect for traditions will coalesce with a mentality focused on expansion.
Volkswagen Financial Services
To be the key to greater mobility is the vision of ROUTE 2025, the strategy of Volkswagen Financial Services. In this endeavor, the Group fulfills key functions for different stakeholders – as a reliable partner for the dealers but also for customers, for whom Volkswagen Financial Services makes individual mobility possible with attractive products. Dedicated employees live the corporate values, distinguish themselves through operational excellence and thus lay the foundations for profitable growth in the Volkswagen Group.
Volkswagen Group China
Volkswagen Group China has been active in the People’s Republic of China for nearly 40 years, during which time it has established itself as the largest vehicle manufacturer in this key global market. The strategic objective is clearly defined: together with its partners, the company aims to become the leading provider of sustainable mobility in China.
More about the strategy
Would you like to know more about TOGETHER 2025+, Focus & Speed? In June 2019, CEO Dr. Herbert Diess presented the sharpened program for the future at a top management conference in Wolfsburg.
Here you will find excerpts from his speech.