Volkswagen CEO Muller Outlines Plan To Save Automaker From Scandal
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:
• Behavior modification
• Let’s 86 Our Aspiration
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- Jeff S Some of us don't care either way we are not into this type of car. Most of these will be stored in garages waiting for their value to go up. As someone above noted this is an old body style which is retro 70s Challenger which after researching it came out in the 2008 MY which means a long run for a model that is in its 16th year. I have always liked these but if I bought one I would not spend this kind of money on one probably get the V-6 version and use it as a family car but then I am not into drag racing or muscle cars. For the type of car it is it has a decent rear seat and not too bad of a trunk. Most of us are not going to spend 100k for any vehicle at least currently so its not something most of us will buy and stick in a garage waiting for its value to increase. I am glad that these editions came out for those who can afford them and it keeps a little more color into what has become a very dull vehicle market but then with age I pick the dull appliance like reliable vehicle because that's what I need. Impressive car but not for me.
- Jonathan The Germans. So organized they can appear disorganized. I agree with some others, classic names like Thunderbird, Imperial, Grand Prix, Ambassador etc. just have more appeal.
- Bobbysirhan A friend had one when they first came out. He was CFO of some green California company and could charge the Volt at work. At home, the PHEV gave him an excuse to make his wife park her nicer car outdoors while the Volt get their condo's one-car garage. He liked the Volt, and he spent very little on energy during the 'first one's free!' era of EV ownership. Of course, the green company went bust soon after, and he wound up with a job that involved far more driving and ultimately the need for a more substantial car. I drove the Volt once after his wife had made a return trip to Los Angeles, depleting the battery. I don't know what a first gen Volt drives like with a charged battery, but it was really gutless with two adults, a yellow lab, and a dead battery. My other memory of it was that it had a really cramped back seat for a car that was about as large as a Civic. My friend who bought it liked it though, and that's not always been the case for GM vehicles.
- MrIcky I think the Shakedown is more my speed of the last call editions- but this is impressive.
- Dukeisduke I tried watching the live reveal last night, but after 15 minutes of jawing by MT+ personalities (and yes, I like Chris Jacobs and Alex Taylor), I turned it off.
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.
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.