German marque, and the world’s largest automotive maker by gross sales, Volkswagen (VW) seems to be wising as much as the altering panorama of the auto world.

In a gathering with greater than 100 firm managers in Berlin this week, VW CEO Herbert Diess mentioned that the corporate should “slaughter some sacred cows” and remodel right into a tech firm if it’s to outlive, the FT reports. In different phrases, VW goes to must retire beloved autos in favor of greener options.

Evidently VW is rising more and more conscious of how corporations like Tesla are shaking down the motor trade.

“We’re valued like an vehicle firm, whereas Tesla is valued like a tech firm,” Diess mentioned.

Certainly, as autos pivot to electrical drivetrains over inside combustion engines, the emphasis additionally pivots away from engineering prowess to software program improvement. A pattern Diess reportedly emphasised throughout his discuss.

Diess can also be eminently sad with how lengthy it’s taking VW to get up to the realities of what fashionable drivers need and what fashionable automotive corporations ought to be making.

He actually pulled no punches, saying the shift to electrical autos requires a “radical change of route.”

“The storm is simply starting… the time of traditional automotive producers is over”

However it’s not all mouth and no trousers from the VW chief. In his speech, he alluded to a doable restructuring of Volkswagen Group, one of many largest motor producer conglomerates on the planet. VW Group owns 12 manufacturers together with Skoda, Audi, Porsche, Seat, and Bentley.

It’s not clear how it will look, however Diess harassed a want to prioritize revenue margins moderately than supply volumes and to place the corporate‘s full give attention to “the breakthrough of electrical mobility.”

It’s not a shocking narrative provided that VW‘s first totally electrical automotive goes on sale this yr.

Its sister model Porsche additionally lately launched the all-electric Taycan, which is impressing traditional motoring press. However due to its considerably lackluster vary and premium price ticket, it isn’t going down so well within the tech centered group.

Not less than VW is driving in the suitable route, even when it can require dramatic adjustments to its enterprise mannequin.

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