Volkswagen Group’s future course is obvious to its CEO, Herbert Diess: The answer is electrical mobility. With its program for full-electric vehicles in all the primary market segments, VW goals to adjust to more and more more durable international CO2 emissions laws and in addition make a contribution to a greener planet. Diess, 62, talked about this, adjustments in VW’s prime administration and Tesla’s inventory market worth in an interview with Automobilwoche, a German-language sister publication of Automotive Information Europe.
VW is shifting towards battery-powered electromobility extra resolutely than different long-established automakers. Why?
It’s important to do it persistently in order for you visitors is to turn into CO2-free. Should you do not develop combustion and EV platforms on the identical platform, the electrical vehicles will probably be actually good. That is why we determined to develop an unbiased e-platform.
What number of instances a month do you doubt that this radical method could not the appropriate one?
The final time I had doubts was 10 years in the past. Since then, the objective and course have been clear. We wish to turn into CO2-free and obtain our fleet emission discount targets. The reply as to the way to obtain that is clear.
Might VW model quickly promote solely electrical vehicles in superior international locations and not provide combustion engines ?
That is as much as the shoppers and legislators. In varied international locations there are discussions about when solely emissions-free autos will probably be allowed to be offered. Restrictions on the registration of combustion engines and even bans on this drive system will reply the query of what prospects will be capable of purchase sooner or later.
Why is VW nonetheless constructing plug-in hybrid vehicles if full-electric autos are the longer term?
Plug-in hybrids are justified and are wrongly criticized so strongly. Should you drive the brand new [plug-in] VW Tiguan, it might probably do 50 km to 60 km on elecric energy. Many Tiguan prospects drive 80 % of their complete driving distance with it. Fashionable plug-in hybrids are a good selection each economically and ecologically. The CO2 stability is nowhere close to as unfavourable as is often proven.
There are lots of international locations the place combustion engines will proceed to be standard for many years. Will VW abandon these markets?
No, we’ve superb combustion engines and hybrids. And in international locations with low automobile utilization, it is sensible to suppose electrical proper from the beginning.
Does it nonetheless make sense to construct up a community of filling stations there? Photo voltaic vitality and electrical mobility are rather more apparent.
The fundamental precept for the market technique is that electromobility makes notably good sense the place CO2-free electrical energy is offered.
How far do EVs want to have the ability to journey on a single cost to win over skeptics?
There was a variety contest amongst automobile producers previously few years. That may turn into much less vital. What issues will probably be that what is obtainable is environmentally pleasant. Batteries which might be too giant and heavy will not be good for the CO2 stability. One thing in between is correct.
You drove the VW ID3 battery-powered hatchback to Italy’s Lake Garda in your summer time trip. How was that?
We had a variety of round 350 km (218 miles) and that suited us fairly nicely.
The ID household begins with the numbers 3 and 4. What is going to the nomenclature appear like ultimately? Will it’s the equal of the present platform, i.e. from A00 to L?
The idea is to construct totally electrical variations for the primary VW segments. The ID3 begins within the Golf section, the ID4 corresponds to the Tiguan when it comes to dimensions. As well as, a sedan will probably be added, and the ID-Buzz (electrical minivan) research. There are nonetheless gaps within the nomenclature. We are going to discover provide options.
Would you say that VW has began on time with the ID household? Or is VW too late?
The time is correct. So long as electrical mobility was within the area of interest with market shares beneath 1 %, it made sense to solely electrify present platforms. We did that with the Golf and the electrical model of the Citigo minicar. However now that volumes are coming into the markets, our personal ID platform is the logical and finest resolution.
The manufacturing begin of ID3 in Zwickau, Germany, was not a straightforward one. In accordance with info from Automobilwoche in September, VW needed to deploy about 500 further workers to remodel autos. Is the manufacturing of an EV nonetheless worthwhile?
Transforming shouldn’t be the appropriate phrase. We pre-produced autos by which we are actually putting in the software program. That’s true. We’d like workers for this. We’re working additional shifts to fulfill the demand.
How vital is the market worth of VW to you? Tesla is way smaller and has ten instances the market capitalization of VW Group. Do you perceive how inventory markets can create this example?
I can perceive it. Tesla shouldn’t be valued as a traditional automotive firm. Due to its excessive valuation, even bold growth plans may be financed nicely through the market.
How will you make VW’s factories match for the longer term? A few of them are greater than 70 years previous.
We now have many new, trendy places. In contrast to different automakers, we’re changing total vegetation to construct e-vehicles. We’re persistently exploiting economies of scale. That is why EVs from 4 completely different group manufacturers are beginning up in Zwickau on the MEB platform.
VW wished to ascertain manufacturing in a giant means in Turkey. That was not attainable. Now, you say it will likely be Bratislava, Slovakia.
Turkey is off the desk. We determined to construct up capability in Bratislava. Meaning no value drawback in comparison with Turkey. Additionally due to coronavirus, we’ve reassessed our capability necessities and presently don’t want an extra plant. However it stays a drawback that we can’t higher faucet into the Turkish market through a plant in Turkey.
You’re additionally closely shaking up prime administration, which has prompted unrest within the firm. Why the restructuring?
Within the TMK division [the group’s top management unit,] round 30 colleagues out of round 300 have just lately modified positions. That may be a comparatively small quantity. Adjustments are vital to enhance. This is applicable to the corporate as a complete and to the administration. That’s the reason focused rotation can be a part of administration improvement.
Personnel improvement appears to be your favourite matter.
It’s essential that the appropriate folks tackle accountability in the appropriate place. Enterprise is folks. A minimum of 70 % of success will depend on having the appropriate folks in administration.
In a latest interview, you mentioned that 80 % of administration restructuring has taken place, which implies that 20 % remains to be open. Who’re the 20 %?
Since then we’ve have moved on and new appointments have been made.
Final query: 2020 was a yr that may go down in historical past. What has the coronavirus pandemic carried out to VW?
We work in a centered and constant method and reap the benefits of our market alternatives. In the course of the pandemic, we’ve been in a position to improve our international market share by 0.5 share factors this yr. After all, we miss the non-public contact with our colleagues at our places and in our markets. I can solely speak to lots of our enterprise companions on the cellphone or through video conferencing. That is not sufficient in the long term. Direct private contact is vital. To this point, we’ve had only some instances of coronavirus: 0.11 % of the workforce is contaminated, in Germany the determine is 0.36 % [as of mid-October]. I feel we’ve managed this nicely.