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Volkswagen's CEO Matthias Mueller has pledged to increase the company's profitability, develop 30 new electric or plugin vehicles and make Volkswagen a model for "integrity & legal affairs." Mer Mueller's comments came at a heated and often controversial group AGM today.
"We are also continuing our intensive efforts to enhance the environmental compatibility of our diesel and gasoline models," Mueller said and then announced another milestone related to the internal combustion engine. "We will successively equip the Group's new TSI and TFSI engines with gasoline particulate filters. This initiative will begin with the 1.4 litre TSI engine in the new Volkswagen Tiguan and the Audi A5 in June 2017. This will reduce particulate emissions by up to 90 percent. Up to 7 million Volkswagen vehicles could be equipped with this technology each year by 2022.
He said the Company's "most important currency" was credibility and trust in the Group's brands, products and "Volkswagen as a whole", adding that it was all about regaining the trust lost as a result of the diesel issue. With reference to the current fiscal year, he added: "That does not mean, of course, that we have buried our ambition. Quite the opposite. We do not plan to make it easy for the competition." The 60 or so innovations that the Group will be launching on the market in 2016 will play a role as well. These include vehicles like the new Volkswagen Tiguan, the Audi Q2, the new Seat Ateca and the Porsche Panamera, "which have been extremely well received and for which we have high expectations."
Mueller also made it clear that "in 2016, too, we will naturally be paying very close attention to our costs. The ongoing efficiency programs are in full swing throughout the Group. And with regard to capital expenditure, we will set the necessary priorities and maintain strict discipline." However, there was no doubt that "even in difficult times, we will meet our social responsibility to our employees. This is what sets Volkswagen apart from many other companies. And that will remain the case in the future."
Privately Volkswagen insiders are admitting that the group's sprawling mode ranges will have to be trimmed, which means slow-sellers such as the Volkswagen Scirroco and a replacement for the Skoda Roomster are probably going to be canned, along with several others. The rumours stop short of any brands being sold off, though.
Some of those models will be replaced with electric or part-electric cars, though, as Volkswagen is promising a major drive on vehicle electrification as it attempts to clean up its image, post-dieselgate. "It will be with us for some time to come and will still account for around two-thirds of the new vehicles market volumes in 2030," said Mueller. "But that also means the other third will be electrically powered. The breakthrough for e-mobility will long be reality by then. And we are determined to make e-mobility a new hallmark of Volkswagen."
Mueller also mentioned that a further 3.7-million affected diesel models have now been approved for remedial work by the German authorities, including the Volkswagen Passat, Tiguan and Caddy, all variants of the Golf, the Seat Exeo and the Skoda Superb plus various Audi models such as the A3, A4 and Q5. However, the diesel emissions controversy caused some outbursts at the meeting. In the wake of news that former CEO Martin Winterkorn and current head of the Volkswagen brand Herbert Diess are being investigated by the German state of Brunswick on possible criminal charges, some shareholders at the meeting tried to stage a coup and have the current head of the Volkswagen board Hans Dieter Poetsch replaced by Stephan Weil, premier of Volkswagen's home state of Lower Saxony and a Volkswagen board member. The move failed, but at several points, the meeting descended into shouting and arguing. So far, just ten Volkswagen employees have been suspended or have left the company in the wake of the scandal.
Nonetheless, Mueller is pushing ahead with his plans, which include a major shakeup of Volkswagen's parts and components supply business, with an emphasis on drawing more from outside suppliers rather than assuming that internal supplies are necessarily the best. Mueller also promised that all future emissions testing will be verified and overseen by independent third parties. "We have therefore decided that emissions tests at our company will, as a general principle, be externally evaluated by independent third parties in future. Real-world random testing of vehicle emissions behaviour on the road will also be introduced. I strongly believe that our industry requires more transparency, courage and openness in dealing with this issue. And this is why we firmly support political initiatives in this area.
"What's done cannot be undone. But what does lie in our power is ensuring we act in a responsible manner. This is our commitment to you. What unites all of us with a role to play here at Volkswagen - whether it be the Supervisory Board, Board of Management, executives, employee representatives or workers - is the desire to do everything we can to win back trust."