NEWS ANALYSIS: How disaster put VW on the road to electric cars
The dieselgate scandal forced Volkswagen to look for new avenues of opportunity (and escape) and electro-mobility was the way to go
Wolfsburg — If Volkswagen (VW) realises its ambition of becoming the global leader in electric cars, it will be thanks to a radical and risky bet born out of the biggest calamity in its history. The German giant has staked its future, to the tune of €80bn ($91bn), on being able to profitably mass-produce electric vehicles — a feat no car maker has come close to achieving. So far, mainstream car makers’ electric plans have had one main goal: to protect profits gleaned from high-margin conventional cars by adding enough zero-emission vehicles to their fleet to meet clean-air rules. Customers have, meanwhile, largely shunned electric vehicles because they are too expensive, can be inconvenient to charge and lack range. The biggest strategy shift in VS’s 80 years has its roots in a weekend crisis meeting at the Rothehof guesthouse in Wolfsburg on October 10 2015, senior executives told Reuters. At the meeting hosted by then VW brand chief Herbert Diess, nine top managers gathered on a c...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.