This study looks at the outcome of the 2018 Strategy which was introduced by the VW Group in 2010. It then analyzes the recent Strategy 2025 which was rolled out by the group. Key aspects of the new strategy are analyzed and their implications for the overall group and the individual brands are discussed. The study also looks at the various capabilities that the group should possess to achieve the goals by 2025 and the various ways in which those capabilities can be acquired. Finally, the study provides strategic recommendations which can help the group to seamlessly execute its Strategy 2025 vision and achieve the desired results.
The VW group is one of the leading automotive OEMs in the world. In 2016, the group replaced Toyota as the largest OEM in the world in terms of number of units sold. The group sold a total of 10.4 million units globally in 2016. The Dieselgate scandal had a significant impact on brand image in the United States. However, customer satisfaction remained high in markets such as China and Europe contributing to increased sales. Volkswagen group is the leading investor in R&D in the globe among companies spanning across different sectors. The group aims to consolidate its position as the apex automaker in the future as well through its Strategy 2025 vision. This gives rise to some of the key objectives of this study which are as follows.
1. To understand the key aspects of the Strategy 2025 initiative
2. To identify the main areas of focus for the company to execute Strategy 2025
3. To decipher the impact of the new strategy on the product portfolio of the group
4. To understand the key technology focus areas for the group
5. To get an insight into the new mobility company within the group.
The company recently set up a separate company called MOIA to address the demands of future mobility. The company aims to be at the forefront of on-demand mobility solutions of the future. This research service covers this aspect extensively, exploring the capabilities and technologies required to compete in the on-demand mobility services space. It also tracks and captures the various initiatives taken by the company to achieve its mobility service goals and potential initiatives which could unravel in the future. Other key areas covered in this study include electrification, autonomous driving, advanced Human Machine Interface (HMI) features, Advanced Driver Assistance Systems (ADAS) and connected car concepts, to name a few. Specific technology concepts covered pertaining to the Volkswagen Group include gesture recognition, natural language understanding, Plug-in hybrid vehicles (PHEV), battery electric vehicles (BEV), battery packs and battery factories. The study also discusses Volkswagen's financial services division and the innovation that the group is bringing into the retailing arena.
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