Volkswagen is gearing up for what appears to be a very busy 2020, with plans to introduce 34 new models globally, of which includes 12 SUVs and eight pure electric or hybrid vehicles. All this will be executed in line with the Paris climate goals, and the Wolfsburg automaker plans to achieve carbon-neutral status by 2050, with CO2 emissions halved by 2025.

Now, without revealing too much, Volkswagen COO Ralf Brandstätter said: “We are at the beginning of a new era. We mean business with e-mobility. The brand will be investing €19 billion (RM87.24 billion) in future technologies through 2024, €11 billion (RM50.51 billion) alone in the further development of e-mobility.”

“And Volkswagen starts the biggest electric offensive in the automotive industry next year: The ID.3 goes on sale in the summer, soon followed by the ID.Next, our first electric SUV. Our ID. family makes emission-free mobility accessible to many people for the first time. That is New Volkswagen,” he added.

Volkswagen has certainly been vocal with its aspirations. Last month, following a supervisory board meeting, the automaker approved a huge €60 billion (RM275.5 billion) investment into hybridisation, electric mobility and digitalisation over the next five years. That includes the introduction of 75 all-new electric models across all brands within the group, along with 60 hybrids.

Other than that, it also plans to double down on software expertise – its Car.Software division will begin working independently starting January 2020, with hopes of raising vehicle-related services to at least 60% by 2025, up from the meagre 10% today.

From a sales point of view, Volkswagen claims to have won market shares worldwide and significantly improved its operating result, despite the shrinking overall market. Brandstätter said that ongoing restructuring of core business and the global SUV offensive have been key to this achievement.

On the restructuring side of things, the COO said the company has saved some €2.6 billion (RM11.94 billion) of the planned €3 billion (RM13.77 billion) in cost savings by the end of 2019. The target was initially announced during its pact for the future plan in 2016.


VW also claims the Mk8 Golf has been “extremely well received” by customers

Company CFO Arno Antlitz said: “Our strategy is gaining a foothold. Our vehicles are convincing customers and our consistent discipline with respect to costs and investments is having a positive impact. We therefore confirm our target of an operating return on sales of 4% to 5% for the full year 2019 in a difficult market environment.”

“As announced, we expect to generate cash flow from operating activities significantly in excess of one billion euros (RM4.59 billion) in 2019. Our financial targets for 2020 remain unchanged. Furthermore, we reaffirm our targets for 2022 of an operating return on sales of at least 6% and cash flow in excess of 2 billion euros (RM9.18 billion).”

Vehicle production has also been streamlined, and thus more efficient this year. For 2019, Volkswagen claims its annual productivity will improve by over 7%, up from the initial target of 5%.