VW CEO shifts strategy from empire building to efficiency

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VW CEO shifts strategy from empire building to efficiency
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Volkswagen has abandoned its decades-old obsession with empire building and no-e...

) has abandoned its decades-old obsession with empire building and no-expense-spared engineering to free up resources for the development and mass production of electric cars, its CEO Herbert Diess told Reuters.

While rivals such as FiatChrysler and Renault explore a $35 billion deal to bulk up, Volkswagen is taking the opposite approach: slimming down. Volkswagen grew into a multi-brand empire under the leadership of Ferdinand Piech, the company’s chief executive and chairman between 1993 and 2015, whose aggressive expansion resulted in the acquisition of Bentley, Bugatti and Lamborghini in a single year.

“The product experience needs to be right. But you need to keep an eye on cost. You cannot run the business by focusing only on product,” Diess told Reuters. Frank Witter, the company’s chief financial officer said he wants to raise profitability to help shoulder the emissions clampdown by slimming down, rather than bulking up the car and truck maker.

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