Volkswagen CEO Muller Outlines Plan To Save Automaker From Scandal

Aaron Cole
by Aaron Cole

Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

Müller’s five-point plan began with the automaker’s solution for its diesel scandal, which affects more than 11 million cars worldwide. The CEO said Volkswagen would work with German transportation authorities to “develop effective technical solutions” that would begin in January. Müller’s plan didn’t specifically outline how those cars would be fixed.

The plan also specifically highlighted changes to its structure, including a comprehensive investigation into how software designed to cheat emissions tests made its way into millions of cars. Müller said the company would “decentralize” and offer more autonomy for regions and brands in their developments and that the automaker would evaluate its massive portfolio of brands, including Lamborghini, Bentley, Bugatti and Ducati.

“We will review in detail our current portfolio of more than 300 models and examine the contribution that each one makes to our earnings,” Müller said in a statement.

Going forward, Müller said the company would be more open and transparent in its operation, including how it plans on growing after spending billions to recall and fix its cars — just as long as you’re not looking for details right now.

“We need a culture of openness and cooperation,” Müller said in a statement.

The automaker also announced Tuesday that it had lost $1.9 billion in third-quarter revenues, mostly due to its defective diesel cars, according to the Wall Street Journal.

Müller’s five-point plan, in brief:

• Assumption


• Investigation


• Reorganization


• Behavior modification


• Let’s 86 Our Aspiration

Aaron Cole
Aaron Cole

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  • Wmba Wmba on Oct 28, 2015

    This announcement seems firmly in the blah, blah, blah category. No real news, just whats-his-name mouthing future product plans, which are by-the-by and highly tentative. What people want to hear is an honest-to-goodness point-by-point plan as to the how and when the dud engines are going to be fixed. The rest is just lips moving. The company is so out to lunch they seem incapable of real meaningful action. If they don't get moving soon, governments will TELL them what to do instead, and they deserve it.

    • Th009 Th009 on Oct 29, 2015

      You're not going to get a detailed plan on an investor conference call. All you're going to get is the high-level direction.

  • JimothyLite JimothyLite on Oct 28, 2015

    The Strategy 2025 plan will be unveiled shortly, replacing the Strategy 2018 plan. Their seven years of bad luck is accounted for. All they need now are the funds to amortize it.

  • Dukeisduke Is the Volvo EX30 even on sale yet? It was pulled from the NACTOY awards because they were having software problems with the vehicle.
  • Wjtinfwb If you've only got 5k to spend on transportation, I cannot imagine a worse way to spend it than on a GM orphan from Sweden that's 15 years old with 150k on the clock and limited plus expensive parts availability and dwindling techs who'd even want to work on it. Go find a similar vintage Camry or Accord with 150k miles or even a Ford or a Chevy, whatever. Hell, even an old Jaguar is less of a crapshoot than a Saab. At least you can still get parts.
  • Kwik_Shift Brands that were considered from China include BYD, Dayun, Great Wall Motors, Maxus, Nio, Omoda/Chery, Seres, XPeng, and Zeekr. KG Mobility from South Korea also made the list of candidates.That's a lot of car companies from there ready to head here.
  • Analoggrotto Clean sweep and unanimous victory for the world affluence engine of 22nd century : Hyundai/Kia/Genesis. Toyota and Lexus, for 120 years of history have not been able to capture the zenith superlative status of Hyundai Motor Corporation the most awarded, decorated and revered automotive corporation in the history of historical. Featuring best ever, first ever and greatest ever e-ATPs the Hyundai Genesis Kia lineup is posed to become the envy of every country club, ivy league college and fortune 500 corporation in the world. I've been taking a roadtrip in my loaner Elantra N, visiting colleges from east to west, elite universities of higher learning to inspect their parking lots. WHat did I find? Leagues of Genesis models, outnumbering Lexus 3 to 1. When I interviewed faculty and staff at these places of greater learning, their response was unanimous : they chose HMC for the ATPs.
  • Mikey 2019 Chevy Impala Premier FWD with 20 inch factory Bridgestones. I'm looking at replacing tires at the 65,000 KLM's (40,000 miles ) mark ....It doesn't thrill me .. I'm pricing Michelin Cross Climate 2 tires ouch !! ..Up here in Canuckastan ....Big $$$$$
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