Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Volkswagen to speed up electric vehicle transition, new CEO says

Published 09/01/2022, 05:18 AM
Updated 09/01/2022, 06:26 AM
© Reuters. Oliver Blume, CEO of luxury car manufacturer Porsche AG, speaks at the Automobilwoche car summit in Ludwigsburg, Germany, November 10, 2021. REUTERS/Andreas Gebert
VOWG_p
-

By Victoria Waldersee

BERLIN (Reuters) -Volkswagen will accelerate its transition towards electric vehicles, but needs to find the right "rhythm" as it makes the shift, new Chief Executive Oliver Blume said at an internal conference on Thursday, the first day of his tenure.

At a gathering of global top managers in Lisbon, Blume said he had developed a ten-point plan focusing on topics including financial robustness, sustainability, the capital market, and development in China and North America.

"I am a fan of e-mobility and I stand by this path ... we will keep the current pace and, where possible, increase it," Blume said.

Volkswagen (ETR:VOWG_p) aims to overtake Tesla (NASDAQ:TSLA) as the world's largest electric vehicle maker by 2025 and for half its global vehicle sales to be battery-electric by 2030.

Blume, CEO of Porsche since 2015, is an advocate for synthetic fuels, raising questions upon his appointment to the helm of the Group over whether he would water down the strong focus of former boss Herbert Diess on battery-electric vehicles.

Still, the new chief said in an interview with local newspaper Braunschweiger Zeitung on Thursday that e-fuels remained "primarily a topic for Porsche".

Volkswagen must find the right rhythm for a stable transformation by defining and following through on a clear strategy, he added in his speech in Lisbon, which was peppered with references to the importance of teamwork and collaboration.

Sources have said Blume was chosen in part because he is seen as a calmer and more consensus driven leader than his predecessor, who was known for radical shifts in strategy and a single-minded approach which at times angered the carmaker's powerful workers council.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In an interview with Handelsblatt, the 54-year-old attempted to allay concerns that his dual role as chief of Porsche and Volkswagen would cause problems, pointing out he was giving up 10 of his mandates.

Blume will also take over responsibility for software unit Cariad, which was set up on Diess' watch and is far behind on its goals.

The software unit could be more open towards partnerships, Blume told Handelsblatt, reasoning that if global standards exist, it was inefficient to reinvent the wheel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.