Volkswagen aims to go electric, raise lagging profits

Volkswagen aims to go electric, raise lagging profits
The head of Volkswagen core brand Herbert Diess speaks at a news conference at the Volkswagen headquarters in Wolfsburg, northern Germany, Tuesday Nov. 22, 2016. Volkswagen division head Herbert Diess said that the goal is "to fundamentally change Volkswagen" as it bounces back from a scandal over cars rigged to cheat on diesel emissions tests. The plan foresees new investments in electric-car technology and in software that would enable new ways of using and sharing cars over the longer term. ( Philipp von Ditfurth/dpa via AP)

The head of Volkswagen's core brand is sketching out a broad restructuring emphasizing electric cars and digital technology such as autonomous vehicles and car-sharing.


Volkswagen division head Herbert Diess said Tuesday at a news conference at company headquarters in Wolfsburg, Germany that the goal is "to fundamentally change Volkswagen" as it bounces back from a scandal over cars rigged to cheat on diesel emissions tests.

The plan foresees new investments in electric-car technology and in software that would enable new ways of using and sharing cars over the longer term.

It seeks to raise sales profit margins to 6 percent by 2025, from just 2 percent in 2015.

Profitability at the Volkswagen brand has lagged; the company gets most of its earnings from its luxury makes Audi and Porsche.

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