The transition within the route of the electrification of cars is an issue for automotive enterprise and whoever manages it best will succeed, the CEO of German automaker Volkswagen Group suggested CNBC Tuesday.
“We are really getting into a transition period of the automotive industry and, reading between the lines of all the communications our competitors are doing, it will be tough times because we have to invest in new technology, not only electric drive trends but autonomous driving, connectivity,” Herbert Diess, chief authorities of Volkswagen, suggested CNBC’s Annette Weisbach on the Geneva Motor Show.
“So, this period of the next five to ten years will be very tough for all our competitors,” he talked about, together with: “I think the company that manages this transition best will succeed.”
Volkswagen showcased an all-electric dune buggy on the Swiss automotive current on Monday and launched ultimate November that it will spend 44 billion euros ($50 billion) on new vegetation, electrical cars, autonomous driving and mobility suppliers between 2019 and 2023. VW has moreover talked about it is making an attempt to companion with completely different producers on electrical cars in a bid to lower progress and manufacturing costs.
— Volkswagen News (@volkswagen) March 4, 2019
Earlier this yr, VW and Ford launched a plan to assemble enterprise vans and medium-sized pickup vans collectively as early as 2022. They moreover launched plans to work collectively on autonomous car evaluation.
VW Group is probably going one of many world’s largest automakers and consists of twelve producers along with VW, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini and Porsche. In the previous few years the company was wracked with the diesel emissions dishonest scandal, however, and further these days has confronted the specter of U.S. tariffs on European automotive imports and automotive parts. EU and U.S. officers are due to keep commerce talks on Wednesday with Europe keen to avert the chance to its automotive enterprise. German-listed shares of Volkswagen have fallen 5 % throughout the ultimate six months reflecting investor points.
Diess talked about that every one automakers have been seeing their shares shopping for and promoting at a discount and talked about this was due to the transition taking place throughout the enterprise. Diess believed VW had the easiest probability of success throughout the transition within the route cars nonetheless conceded that the group ought to be additional atmosphere pleasant.
“We think we have the best story, we have to explain it probably a bit better maybe and for sure it’s also about efficiency, we have still a lot of synergies in the group, it’s big with all the different brands, but that takes time. But I think we’re on the right way and I think once the market understands our story the share price will go up,” he talked about.