Volkswagen reveals ‘New Auto’ brand strategy
Volkswagen Group has unveiled an ambitious ‘New Auto’ business strategy, with significant investments into software, batteries, and mobility technology.
Designed to leverage opportunities arising from the electric and digital era of mobility, the new strategy places high importance on sustainability and decarbonisation.
Under the strategy, the Group plans to reduce its carbon footprint per car by 30 per cent over its lifecycle by 2030, in line with the Paris agreement.
In its shift to electrification, Volkswagen claims that the share of battery electric vehicles is expected to rise by 50 per cent, while in 2040, nearly 100 per cent of all new Group vehicles in major markets should be zero-emission. By 2050, the Group intends to operate fully climate neutral.
Further to enhancing their BEV presence, the brand is taking huge steps in the software side of the business, currently developing a new unified software stack and new Scalable Systems Platform to be introduced from 2025 and 2026, respectively.
These have been described by the Group as finally offering “one unified architecture for the whole product portfolio,” and the “backbone of all Group cars.”
Batteries and charging will also be major focuses for the Volkswagen Group, with the company establishing a controlled battery supply chain. The biggest goal for the brand is to introduce one unified battery cell format with up to 50 per cent cost reduction and up to 80 per cent use cases by 2030. The Group will also undertake battery repair as well as recycling in its plants to further reduce costs and aid in its sustainability efforts.
Finally, as part of its broader New Auto branding, the Group’s new self-driving push involves owning its own autonomous fleets and licensing the software and vehicles required to operate them.
“We intend to install industry-leading platforms across strong brands, to be able to have more scale and capture even more synergies in the future,” said Volkswagen CFO Arno Antlitz.
“We will scale our BEV platforms, we want to develop a leading automotive software stack. And we will continue to invest in autonomous driving and mobility services.”
“Based on the software, the next much more radical change is the transition towards much safer, smarter and finally autonomous cars. That means for us: Technology, speed and scale will matter more than today. The future of cars will be bright!”, added CEO Herbert Diess.
The company has already earmarked €73 billion ($115 AUD) for future technologies from 2021 through to 2025, representing 50 per cent of total investments.
16 July 2021