IT House January 17 According to Reuters, Herbert Diess, chief executive of Volkswagen, said the company needed to accelerate business reforms to avoid becoming another Nokia. The incumbent mobile phone maker Nokia gave up its dominance in the mobile phone market to Apple many years ago.
Volkswagen hopes to increase its market value from the current 91 billion euros to 200 billion euros through asset restructuring, cost reductions and expansion into connected cars.
As regulators tighten emissions regulations, force automakers to clean up internal combustion engines, and develop zero-emission electric vehicles, automakers are accelerating research and development spending to catch up with rivals in the technology sector competing to make autonomous vehicles.
“The big question is ‘Are we fast enough?'” Diss told Volkswagen executives after Thursday’s global board meeting. “If we continue to grow at the current rate, it will be very difficult.”
Dis said that Volkswagen is transforming from a traditional car manufacturer to an autonomous driving and connected car manufacturer, and this step needs to cut costs and improve efficiency. “The era of traditional car manufacturers is over.” Volkswagen plans to adhere to stricter emissions standards while seeking to maintain profit margins. Volkswagen also needs to focus more on profits than sales.