Volkswagen CEO: Need to accelerate reforms to avoid becoming another Nokia

According to news on January 17, the CEO of German automaker Volkswagen said the company needs to accelerate business reforms to avoid becoming another Nokia. The incumbent mobile phone maker Nokia gave up its dominance in the mobile phone market to Apple many years ago.

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The multi-brand automaker hopes to increase its market value from about 91 billion euros to 200 billion euros ($ 223.1 billion) through asset restructuring, cost reductions and expansion into new technology areas such as connected cars.

As regulators tighten emissions regulations, force automakers to clean up internal combustion engines, and develop zero-emission electric vehicles, automakers are accelerating research and development spending to catch up with technology rivals competing to make autonomous cars.

"The big question is: are we fast enough?" Volkswagen CEO Herbert Diess told Volkswagen executives on Thursday, "If we continue to grow at the current rate, it will be very difficult."

He said that Volkswagen is transitioning from a traditional car manufacturer to an autonomous driving and connected car manufacturer, a step that requires cost reductions and efficiency improvements. "The era of traditional car manufacturers is over," Diss added.

"All in all, this is probably the most difficult challenge facing Volkswagen," Diss said. He said that Volkswagen plans to adhere to stricter emissions targets while seeking to maintain profit margins. Dis said that Volkswagen needs to focus more on profits than sales.

Dis said that in order to achieve transformation, Volkswagen must focus on its own advantages and give up or give up anything that hinders the improvement of performance.