WOLFSBURG (dpa-AFX) - The Volkswagen Group (VKW.L, VLKAF.PK, VOW.BE) announced it has adopted a future program, 'TOGETHER - Strategy 2025,' the biggest change process in the Group's history. Under the program, the Group plans to: comprehensively transform its core automotive business; rapidly establish a new mobility solutions business; and significantly increase efficiency. Group-wide investments under Strategy 2025 are expected to be in the double-digit billion range.
Volkswagen intends to launch more than 30 purely battery-powered electric vehicles over the next ten years. The Group forecasts that its own BEV sales will be between two and three million units in 2025, equivalent to some 20 to 25 percent of the total unit sales. Volkswagen plans to license a competitive self-driving system developed in-house by the end of the decade. The Group also plans to develop battery technology as a new competency.
The company said its TOGETHER - Strategy 2025 also involves the establishment of a cross-brand mobility solutions business. The new unit will develop and acquire offerings tailored to customer requirements. Volkswagen's aim is for the new mobility solutions business unit to generate sales revenue in the billions by 2025.
The Volkswagen Group plans to realign its components business to strengthen competitiveness, increase efficiency. Under the strategic realignment of Volkswagen, the Financial Services Division will also be a significant source of earnings for the Group.
The Group said it is aiming for a ratio of capex to sales revenue in the automotive business of 6.0 percent by 2025.
The company said the 'Strategy 2025' is backed up with amended financial targets. For the Group's operating return on sales, the aim is an increase to between 7 and 8 percent by 2025. The return on capital employed in the Automotive Division is then intended to be more than 15 percent. The payout ratio to shareholders is to be sustained at around 30 percent of net profit.
Copyright RTT News/dpa-AFX