VW's Diess says existential electric race awaits after pandemic

VW’s Diess says existential electric race awaits after pandemic

Volkswagen Group CEO Herbert Diess mentioned the automaker will pursue a sweeping transition to electrical vehicles, declaring it a matter of survival even because the coronavirus dangers upending enterprise within the close to time period.

Whereas VW has a “wholesome order financial institution,” its growth within the coming months hinges on main economies controlling the illness and averting restrictions that might damage demand and operations, Diess mentioned Thursday.

Regardless of the uncertainties, VW will press forward with aggressive funding in new know-how to keep away from falling behind because the auto business essentially adjustments.

“In case you are not quick sufficient, you aren’t going to outlive,” Diess mentioned throughout a digital Bloomberg occasion. “In the long term, local weather change would be the largest problem mankind is dealing with.”

Diess mentioned one other lockdown can be “troublesome to handle” although the automaker has proven it will possibly climate turbulence. It swung again to revenue within the third quarter — echoing strong outcomes from different automakers together with Daimler, Tesla and Ford, Fiat Chrysler and GM — on the again of a swift demand restoration in China.

One other wave of recent infections in key markets, an unsettled U.S. election and Britain’s messy exit from the European Union are actually among the many dangers dealing with the auto business. Registrations fell in the European Union’s four largest auto markets final month, signaling that gross sales have relapsed after a shock achieve in September.

Past managing via these points, the extra complicated process for the 62-year-old Diess is positioning the 83-year-old industrial behemoth for the long run. VW Group, which operates the Audi, Porsche and Lamborghini manufacturers, needs to regulate the software program brains for next-generation automobiles.

“That is an important race and decisive level for our business in subsequent 5 to 10 years,” he mentioned, including he won’t compromise on the corporate’s know-how roadmap even when the coronavirus disaster saps gross sales.

“We predict we will do it. We’ve software program expertise and we’re ramping up quick.”

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