Transforming VW into a futuristic automaker
Volkswagen is ready to pay customers $14.7 billion for misleading them about the emissions coming from the company’s diesel car line, according to early reports from The Associated Press.
The bizarre twist is that the crisis may help speed one of the world’s largest automakers into becoming a transportation company of the future.
The new management team and board of directors appear ready to settle the cases against the company for installing software in vehicles that could cheat on emissions tests. The company said Tuesday it would buy back polluting diesel vehicles and pay each owner as much as $10,000.
If the judge overseeing the lawsuits against VW approves, the company still has to pay billions of dollars in fines to government regulators. The company has set aside at least $18.2 billion to settle the litigation, though that number will likely go higher.
The scandal has shaken the German company to the core and raised concerns about whether it can recover. But surprisingly, it may have cleared the way for the futurists at VW to chart a new course for the company as a transportation provider beyond cars.
Automakers are reconsidering their future as ride-hailing companies, shared cars and electric transportation take off. VW has lagged behind competitors like Daimler, which has pioneered carsharing, and American automakers, which have developed electric and selfdriving cars.
The scandal cleared out the old management team, but the company needs to rebuild its reputation. VW last fall unveiled the latest version of its e-bike, a project to solve the problem of delivering people from public transportation stops to their final destination.
The company now plans to introduce 30 new electric vehicles over the next 10 years.
“We are using the current crisis to fundamentally realign the Group,” said Volkswagen Chief Matthias Müller. “I strongly feel we now have the chance to build a new and better Volkswagen.”
Forsaking the tried and true is hard when profits are steady. But it was Winston Churchill who was first quoted saying: “Never let a good crisis go to waste.” Müller is taking that excellent advice to create a stronger VW.