Volkswagen's namesake brand hopes to bounce back from its diesel emissions scandal with a broad restructuring that will mean more battery-powered cars, digital services such as ride-sharing, and more SUVs for the U.S. market.
Herbert Diess, the head of the Volkswagen division, unveiled the company's Transform 2025 plan at a news conference Tuesday, saying that "in the coming years, we will fundamentally change Volkswagen. Only a few things will remain as they are."
The plan foresees a major shift in focus toward investments in electric-car technology and in software to enable new ways of using and sharing cars. The Volkswagen division alone expects to sell a million electric vehicles a year by 2025. Including the company's other brands, such as SEAT and Skoda, the Volkswagen Group expects to sell up to 3 million electrics by then.
Diess said the company would also "massively step up" its capacity to develop software, aiming to create industry-leading programs and hardware systems for digitally connected and autonomous cars by 2025.