Volkswagen's 2025 Plan: Be More Open-Minded, Cut the Fat, and Build 30 Electric Models

Steph Willems
by Steph Willems
volkswagens 2025 plan be more open minded cut the fat and build 30 electric models

Volkswagen Group wants to give its operation a top-to-bottom shakeup, which means ditching the bureaucratic, centralized ways of the past and positioning itself as a lean, nimble player in a rapidly evolving marketplace.

Oh, and there will be tons of electric vehicles. Piles and piles of them.

In its announcement of the TOGETHER – Strategy 2025 plan, the automaker came off sounding more like a tech startup, touting a newfound “entrepreneurial mindset and approach” that will bring the company out of the long shadow of the emissions scandal.

Efficiency is top of mind in the plan, with streamlining across the board — including on the assembly line, where modular platforms will be massaged for every last bit of usefulness. The early details we reported on yesterday, including a portfolio review, potential asset sale, and consolidation of component units, are also part of the plan.

Moving forward, Volkswagen wants its truck and bus division (Scania, MAN and Volkswagen Commercial Vehicles) to be a bigger moneymaker for the group. It wants those vehicles to have the biggest presence in the global market, too.

A new mobility solutions business unit, which no automaker (it seems) can be without, aims to turn a profit in the billions of dollars by 2025.

In terms of products, the company said it will position its model lineup “to focus on the most attractive and fastest-growing market segments,” meaning SUVs, crossovers, and plenty of electric vehicles. In the next 10 years, Volkswagen plans to introduce “over 30” battery electric vehicles, with projected sales of two to three million EVs by the end of the period.

In other words, the automaker plans to dominate the EV market, even though the future of the market — and its eventual size — is hard to judge.

On the corporate front, Volkswagen plans to be extra stingy with its cash. The ratio of research and development costs to sales revenue will drop to six percent, while selling and administration costs will reverse course and drop below 12 percent of revenue.

The company is crossing its fingers and hoping these moves (literally) pay off. It’s aiming for an operating return on sales of somewhere between seven and eight percent, up from six percent last year.

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2 of 16 comments
  • NickS NickS on Jun 16, 2016

    The left side of that picture is more desirable and where I live in California I see quite a few every day.

  • Inside Looking Out Inside Looking Out on Jun 18, 2016

    Model S is immediately recognizable and is a status symbol while S class is lost in crowd car for people who feel old, so 20th century. Sometimes I see Mercedes from behind in traffic and think it is C-class or CLA and get shocked after seeing S-class badge on the trunk - it looks small and forgettable. Model S is slick and modern in comparison - simple, easily updatable to a new version, without all that useless crap S class is loaded with - it is a future. Passat? Forget about - car for losers. I highly doubt that green crown will go for VW any time in forseeable future esp after associating it with ancient Passat and old tech like Diesels.

  • 28-Cars-Later Another: How does Stellantis plan to leverage the EV experience of PSA and Opel (?) against the former FCA operation?
  • Ltcmgm78 We bought a 2017 Volt when it came off lease. What a great car! Cost us $18,000 to buy. We put gas in it a couple of times a year. GM blew it with this car as they have done with others. No buyer education. This should have been the bridge car between pure ICE vehicles and pure battery vehicles. No range anxiety at all. And ours still gets 44 mpg running the gas "generator" to power the electric motor. We love it and wish a new model would return to market.
  • Tassos "Fools Cells" are 20 years into the future.THe problem is, the clowns who cheerlead for them have been saying this for the last 20 years, and before that they claimed they are only TEN years into the future (in 1990. so they would dominate by... 2000). Toyota Shareholders and workers will suffer because of the EGO of those damned fools execs who wasted TEN YEARS, letting TESLA dominate the BEV industry (of the FREE WORLD, China excluded).
  • Urlik You’d think VW would have learned from Honda and Cadillac making the same mistake to varying degrees.
  • EBFlex This will be the end of the Dodge brand. They are going from making vehicles people actually want to little pieces of garbage like the hornet and government cars (EVs).