The Volkswagen Group has been providing individualized and affordable portability to a huge number of people. As a result, the company launched a strategy to gain profitable growth to the brand to achieve a competitive advantage. The strategy is called Strategy 2025. This is a strategy focused on the next five years, Volkswagen’s strategy is to push for electric vehicles. The objective of this strategy is the Volkswagen Group achieve mobility sustainable through electric drives, advanced system networks and autonomous driving, which enable consumers to make vehicles clean, quiet, smart and safe on the road. Meanwhile, the Volkswagen Group will in general offer its customers a new driving experience as the design of core products turns out to be progressively enthusiastic and emotional. It is additionally part of the arrangement as far as atmosphere and environmental assurance.
Along these lines, vehicles can keep on being the foundation of future modern, customized and moderate mobility. The Volkswagen Group connects the world through cross-brand production systems to protect processes from suppliers to factories and assembly lines, from manufacturing plants to dealers and customers. The production will help to support the future ‘Strategy 2025’ program with their ‘intelligent networking’ production strategy. The Volkswagen Group which encompasses 12 different brands including SEAT, ŠKODAP, Porsche and Audi, but it is still exciting to know that there is going to be so many easy options to choose from seven years, now another target for 2025 is they expect to be selling up to 3 million “e-cars” (electric vehicles) per year by making up 25% of total sales. In order to build all these vehicles, Volkswagen plan to build the 16 electric car assembly plants by 2022. Most of the plants will be built in various locations in Europe but two will be built in China and at least one in North America. One of the plants has already begun construction in China and it is ready to be completed by 2020 so it seems that Volkswagen is well on its way to reaching its ambitious production goal by 2025.
Besides, the Volkswagen Group focuses on production strategy, which is an environmental model production plan. The Volkswagen Group’s goal is to reduce the energy and water consumption of each vehicle produced in 2025, the five key environmental indicators for waste and carbon dioxide (CO2) and volatile organic compound (VOC) emissions from production by 45%. But Volkswagen needs to prepare for securing batteries for all these vehicles. According to the company, they will need 150 gigawatts hours of annual battery production in order to power all these vehicles which is equivalent to at least 4 Tesla gigafactories, but they would not be building their own battery factories like Tesla Incorporated. The Volkswagen Group awarded $48 billion dollars in long-term contracts with each of their undisclosed battery manufacturers, and which companies were awarded the contracts but some of the likely candidates are LG, Samsung, and Panasonic. The idea behind these contracts is to propel the battery manufacturers to invest in their own production capacity. Therefore, they can grow as Volkswagen electric vehicle production ramps up in the coming years.
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