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He also acts as a liaison to the press. He has a PhD in electrochemistry from the University of Nottingham.","https://www.linkedin.com/in/birdmatthew/",{"type":571,"content":572},"doc",[573,580,585,590,595,600,605,610,615,620,625,630,635,642,647,652,657,662,667,672,677,682,687,692,697,702,707,712,717,722,727,732,737,742,747,752,757,762,767,772,777,782,787,792,797,802,807,812,817,822,825],{"type":574,"attrs":575,"content":576},"paragraph",{"textAlign":49},[577],{"text":578,"type":579},"VW’s road to redemption continues as it puts faith in its new EV platform ","text",{"type":574,"attrs":581,"content":582},{"textAlign":49},[583],{"text":584,"type":579},"By Simon Rees",{"type":574,"attrs":586,"content":587},{"textAlign":49},[588],{"text":589,"type":579},"If a week is a long time in politics, then the past few quarters must have felt like a lifetime for Volkswagen Group (VW) management.",{"type":574,"attrs":591,"content":592},{"textAlign":49},[593],{"text":594,"type":579},"The German automaking giant was rocked by scandal in September 2015 when news broke it had illegally fitted defeat devices on popular diesel models in the US over several years.",{"type":574,"attrs":596,"content":597},{"textAlign":49},[598],{"text":599,"type":579},"The software enabled the vehicles to falsely pass nitrogen oxides (NOx) emissions tests.",{"type":574,"attrs":601,"content":602},{"textAlign":49},[603],{"text":604,"type":579},"Millions of diesel vehicles were affected worldwide, with VW having to explain itself and develop expensive retrofit programmes to begin fixing the problem.",{"type":574,"attrs":606,"content":607},{"textAlign":49},[608],{"text":609,"type":579},"The impact of Dieselgate on the company’s bottom line has been eyewatering: €16.2 billion ($18.27 billion) was listed under “special items” in the full-year 2015 results, most of which related to the scandal.",{"type":574,"attrs":611,"content":612},{"textAlign":49},[613],{"text":614,"type":579},"To put it in greater perspective, the cost of Dieselgate exceeded the Israeli defence budget for 2015.",{"type":574,"attrs":616,"content":617},{"textAlign":49},[618],{"text":619,"type":579},"In addition, VW postponed the publication of interim results from its internal investigation under legal advice. The company now estimates completion during Q4 2016.",{"type":574,"attrs":621,"content":622},{"textAlign":49},[623],{"text":624,"type":579},"Investigations by various government agencies around the world are ongoing, while efforts are also underway to reach settlements in US class-action lawsuits.",{"type":574,"attrs":626,"content":627},{"textAlign":49},[628],{"text":629,"type":579},"VW Group CEO Matthias Müller was contrite once more with the release of the full-year 2015 results on April 28.",{"type":574,"attrs":631,"content":632},{"textAlign":49},[633],{"text":634,"type":579},"“[The issue] will remain our most important task until the very last vehicle has been put in order,” he said.",{"type":636,"attrs":637,"content":639},"heading",{"level":638,"textAlign":49},3,[640],{"text":641,"type":579}," Sign of the times",{"type":574,"attrs":643,"content":644},{"textAlign":49},[645],{"text":646,"type":579},"But perhaps the time for sackcloth and ashes is slowly coming to an end.",{"type":574,"attrs":648,"content":649},{"textAlign":49},[650],{"text":651,"type":579},"For all its fiscal horrors, Dieselgate at least delivered a Damascene moment for VW with relation to its business model.",{"type":574,"attrs":653,"content":654},{"textAlign":49},[655],{"text":656,"type":579},"It now wants to put electric vehicles (EVs) at the heart of its operations.",{"type":574,"attrs":658,"content":659},{"textAlign":49},[660],{"text":661,"type":579},"“We plan to make electric cars one of Volkswagen’s new hallmarks,” Müller said on April 28.",{"type":574,"attrs":663,"content":664},{"textAlign":49},[665],{"text":666,"type":579},"The company revealed further details during a June 16 presentation about its new plans under the umbrella title: “Together – Strategy 2025.”",{"type":574,"attrs":668,"content":669},{"textAlign":49},[670],{"text":671,"type":579},"It intends to bring 30 EVs onto the market over the next ten years and believes sales of these models will be between 2m and 3m units by 2025.",{"type":574,"attrs":673,"content":674},{"textAlign":49},[675],{"text":676,"type":579},"The new models are expected to comprise between 20% and 25% of total unit sales for VW by 2025.",{"type":574,"attrs":678,"content":679},{"textAlign":49},[680],{"text":681,"type":579},"The company also believes EVs will comprise 25% of the global passenger car market by that time.",{"type":574,"attrs":683,"content":684},{"textAlign":49},[685],{"text":686,"type":579},"In addition, VW stressed it would increase investment in the development of self-driving systems, artificial intelligence and other new technologies.",{"type":574,"attrs":688,"content":689},{"textAlign":49},[690],{"text":691,"type":579},"Group-wide investment to achieve Strategy 2025 will require “doubledigit” billions in euros, the funding for which will be found by increasing efficiencies, productivity and optimisation.",{"type":574,"attrs":693,"content":694},{"textAlign":49},[695],{"text":696,"type":579},"“To ensure they [investments] can be financed, operational excellence above all else is to be increased significantly across all divisions and functions,” VW said.",{"type":574,"attrs":698,"content":699},{"textAlign":49},[700],{"text":701,"type":579},"Greater elaboration of Strategy 2025 will come in the following months, with a detailed programme relating to brands and functions to be unveiled before year-end.",{"type":574,"attrs":703,"content":704},{"textAlign":49},[705],{"text":706,"type":579},"Specific measures and financial targets will accompany this.",{"type":574,"attrs":708,"content":709},{"textAlign":49},[710],{"text":711,"type":579},"Although the details presented so far are in skeleton form, Strategy 2025 will certainly place VW in the middle of competition to secure the essential feeds for EV manufacture.",{"type":574,"attrs":713,"content":714},{"textAlign":49},[715],{"text":716,"type":579},"But the company was rather taciturn when it came to batteries, saying it would develop battery technology in the coming years as a “new competency”.",{"type":574,"attrs":718,"content":719},{"textAlign":49},[720],{"text":721,"type":579},"“The strategic options for participating in the potential revenue stream associated with this and developing battery technology into a new Group competency will be carefully examined,” it added, without further elaboration.",{"type":636,"attrs":723,"content":724},{"level":638,"textAlign":49},[725],{"text":726,"type":579}," Brave new world",{"type":574,"attrs":728,"content":729},{"textAlign":49},[730],{"text":731,"type":579},"VW has several reasons to be confident. First and foremost, wellhoned supply chains are in place and assembly capacity already exists, offering vital synergies.",{"type":574,"attrs":733,"content":734},{"textAlign":49},[735],{"text":736,"type":579},"By contrast, non-automotive companies entering the space have to build from the ground up.",{"type":574,"attrs":738,"content":739},{"textAlign":49},[740],{"text":741,"type":579},"Secondly, VW has one of the most recognisable brands on the planet and a loyal customer base, albeit one currently bemused and sometimes angered by the Dieselgate revelations.",{"type":574,"attrs":743,"content":744},{"textAlign":49},[745],{"text":746,"type":579},"It also has a wealth of experience and data to call on.",{"type":574,"attrs":748,"content":749},{"textAlign":49},[750],{"text":751,"type":579},"The company has great faith in the development of its core EV architecture, with the Modular Electrification Toolkit (MEB) set to play a vital role.",{"type":574,"attrs":753,"content":754},{"textAlign":49},[755],{"text":756,"type":579},"The MEB will reduce complexity in development and production, the company said. “[It will also] increase efficiency and thus make better use of the system’s economic merits.”",{"type":574,"attrs":758,"content":759},{"textAlign":49},[760],{"text":761,"type":579},"The first vehicles utilising MEB are expected to reach dealership forecourts by decade’s end.",{"type":574,"attrs":763,"content":764},{"textAlign":49},[765],{"text":766,"type":579},"VW’s desire to form new partnerships is another significant development. “The era in which our sector kept itself apart from everything is now over, once and for all,” Müller said on April 28.",{"type":574,"attrs":768,"content":769},{"textAlign":49},[770],{"text":771,"type":579},"“Reservations, solo efforts, or even the illusion of knowing and doing everything better will not help us reach our goals,” he added.",{"type":574,"attrs":773,"content":774},{"textAlign":49},[775],{"text":776,"type":579},"This new approach will inform the company’s expansion programmes, such as within the key Chinese market.",{"type":574,"attrs":778,"content":779},{"textAlign":49},[780],{"text":781,"type":579},"VW also wants a greater footprint in entry-level products and noted it was already in advanced partnership talks with regional players, particularly in Asia.",{"type":574,"attrs":783,"content":784},{"textAlign":49},[785],{"text":786,"type":579},"New technology streams and think-tanks are also receiving investment as part of the efficiency and productivity drive.",{"type":574,"attrs":788,"content":789},{"textAlign":49},[790],{"text":791,"type":579},"Tied to this, VW announced the opening of a competence centre for technology and innovation at its Wolfsburg HQ on 20 April.",{"type":574,"attrs":793,"content":794},{"textAlign":49},[795],{"text":796,"type":579},"One of the centre’s current tasks is to test human-machine interaction as work is undertaken on the same drivetrain.",{"type":574,"attrs":798,"content":799},{"textAlign":49},[800],{"text":801,"type":579},"The transition envisaged by Strategy 2025 is not going to be easy: a great deal of investment and hard work is going to be needed.",{"type":574,"attrs":803,"content":804},{"textAlign":49},[805],{"text":806,"type":579},"It is also important to stress the final effects of Dieselgate have yet to be felt. The full details of who was responsible and why – and whether anyone in senior management was culpable – are still to come.",{"type":574,"attrs":808,"content":809},{"textAlign":49},[810],{"text":811,"type":579},"But VW cannot afford to remain static. Strategy 2025 is its response and a clear signal it believes the EV revolution has arrived, is permanent and that it wants a significant market share.",{"type":574,"attrs":813,"content":814},{"textAlign":49},[815],{"text":816,"type":579},"The strategy also acts as a warning of sorts.",{"type":574,"attrs":818,"content":819},{"textAlign":49},[820],{"text":821,"type":579},"The new automotive era is picking up pace and there is everything to play for. Automakers still dragging their feet on EVs should take heed or else risk irrelevance and eventual obsolescence.",{"type":574,"attrs":823,"content":824},{"textAlign":49},[],{"type":574,"attrs":826,"content":827},{"textAlign":49},[],"VW’s road to redemption continues as it puts faith in its new EV platform",[830],{"slug":562,"name":563,"content":831},{"job_title":565,"image":832,"bio":568,"linkedin":569},{"filename":567},"\u003C!--#storyblok#{\"name\": \"article\", \"space\": \"\", \"uid\": \"0a508bda-83e0-4747-9083-dfe77828114f\", \"id\": \"\"}-->","article",[836,839],{"slug":837,"name":838},"batteries","Batteries",{"slug":840,"name":841},"critical-minerals","Critical Minerals","private",{"id":49,"alt":844,"name":844,"focus":844,"title":844,"source":844,"filename":845,"copyright":844,"fieldtype":846,"meta_data":847,"is_external_url":51},"","https://a.storyblok.com/f/287943243085208/96fd30f2d9/bm-screen-shot-2016-07-21-at-193222.png","asset",{"alt":844,"title":844,"source":844,"copyright":844},"Jul 21, 2016","21st July 2016",[],[],1792747660815]