Even though unconfirmed
reports have said that thousands of Volkswagen cars in India have been affected
by the diesel emissions scam, Volkswagen
Group India has stated that its representatives have met Government of India –
Ministry of Heavy Industries and ARAI on October 29, 2015 and have updated them
on the evaluations so far on the ongoing emissions issue with reference to
Since there is a complex
combination of several brands, various models, different engine variants and
gearboxes as well as different model years that need to be analysed,
establishing detailed facts is taking a longer time.
Volkswagen Group India will
present its results from the evaluations by the end of November 2015. During
this period, the company representatives will stay in regular touch with ARAI
to keep the authorities updated on the analysis. The next steps will depend on
the findings from these evaluations.
Meanwhile, Volkswagen Group
India also stated that all vehicles in the customers’ hands remain technically
safe and roadworthy.
In another related news, Matthias
Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft,
has announced the five key steps to realign the Group. "We have to look
beyond the current situation and create the conditions for Volkswagen's
successful further development", said Müller in Wolfsburg. He presented a
five point plan that he intends to use so that Volkswagen remains one of the
world's leading automobile manufacturers in the future. Müller is confident
that "Volkswagen will emerge from the current situation stronger than
before". He announced that the cornerstones of the Group's Strategy 2025
will be presented next year.
The Volkswagen CEO explained
that his top priority is to support the customers affected by the diesel issue.
"Our customers are at the core of everything that our 600,000 employees
worldwide do", he said. According to Müller, Volkswagen is working
intensively to develop effective technical solutions. In contact with the
Kraftfahrtbundesamt (KBA – German Federal Motor Transport Authority) the
implementation is set to begin in January 2016.
Müller's second priority is to
systematically drive forward and complete the investigation into what happened.
"We must uncover the truth and learn from it", he said, adding that
Volkswagen is being extremely thorough in its analysis. For this purpose, audit
firm Deloitte has been engaged in addition to the steps already announced.
According to Müller, those responsible for what has happened must face severe
Müller's third priority is to
introduce new structures in the Volkswagen Group. "The key point is that
Group management will be decentralized to a greater extent in the future",
he said, with more independence for the brands and regions. Müller stated that
the Board of Management will focus on addressing cross-brand strategies,
leveraging synergies and ensuring that Group resources are used effectively.
"We will review in detail our current portfolio of more than 300 models
and examine the contribution that each one makes to our earnings."
As his fourth priority, Müller
is driving forward a realignment of the Group's culture and management
behavior. He noted that the pursuit of perfection, the employees' commitment
and social responsibility in the Volkswagen Group must be retained. However, he
believes that changes are necessary in how Volkswagen communicates and how it handles
its mistakes. "We need a culture of openness and cooperation." Müller
also called on everybody at Volkswagen to display more courage, greater
creativity and a more entrepreneurial spirit in their dealings with one
The Volkswagen CEO announced
that the fifth priority will be to transform the Group's Strategy 2018 into a
Strategy 2025. "Many people outside of Volkswagen, but also some of us,
did not understand that our Strategy 2018 is about much more than production
numbers. A lot of things were subordinated to the desire to be "Faster,
Higher, Larger", especially return on sales." According to Müller,
the point is not to sell 100,000 more or fewer vehicles than a major
competitor. Instead, the real issue is qualitative growth. Müller announced
that the cornerstones of the Group's Strategy 2025 will be developed over the
coming months, and that it would be unveiled mid-way through next year.
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