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Herbert Diess VW CEO
“Despite all efforts, we’re currently in a rather more difficult situation than in 2018, when I took office”
“What really has changed -- and what I hadn’t expected to this extent -- is the view of capital markets on our industry.”
“Despite all efforts, we’re currently in a rather more difficult situation than in 2018, when I took office”
“What really has changed -- and what I hadn’t expected to this extent -- is the view of capital markets on our industry.”
Diess continued
“We must significantly improve our costs and work on efficiency, to gear the traditional auto business significantly more toward returns”
“The overhaul is still progressing too slowly,”
“Not everyone realizes the threat to our company to the same extent”
“We must significantly improve our costs and work on efficiency, to gear the traditional auto business significantly more toward returns”
“The overhaul is still progressing too slowly,”
“Not everyone realizes the threat to our company to the same extent”
Diess is under heavy pressure and admits it
In 2018 I published my article 'A wake-up call for German Automakers' expressing my frustration
Volkswagen is today financially not competitive https://www.bloomberg.com/news/articles/2021-01-06/volkswagen-ceo-delivers-wake-up-call-on-capital-markets-dilemma
In 2018 I published my article 'A wake-up call for German Automakers' expressing my frustration
Volkswagen is today financially not competitive https://www.bloomberg.com/news/articles/2021-01-06/volkswagen-ceo-delivers-wake-up-call-on-capital-markets-dilemma
Diess feels the pressure from WallStreet & investors with VW only worth a fraction of Tesla. That is more severe than most believe & he talked about that in internal meetings already. the Piech & Porsche families will be not happy & they are the ones who keep Diess in position
Diess said what applies to all incumbents
"We need to significantly improve our costs and work on efficiency to make the traditional car business much more profitable"
The cost & productivity advantage Tesla has with an almost 30% margin for the MIC MY leads Investor $ to Tesla
"We need to significantly improve our costs and work on efficiency to make the traditional car business much more profitable"
The cost & productivity advantage Tesla has with an almost 30% margin for the MIC MY leads Investor $ to Tesla
The consequence is that incumbents have decreasing opportunity to finance the required transformation
With higher costs investing in BEVs incumbents achieve a lower margin and investors pull their $
It's a vicious cycle with a predictable end
With higher costs investing in BEVs incumbents achieve a lower margin and investors pull their $
It's a vicious cycle with a predictable end
