Volkswagen shares fall as CEO outlines further transformation plans

Volkswagen shares are lower Thursday as CEO Dr. Deiss outlines future plan to continue the transformation of the company at its AGM.

Volkswagen shares fall as CEO outlines further transformation plans

Volkswagen shares are lower Thursday as the carmakers CEO told shareholders that the company transformation is ongoing. The possibility of selling some non-core VW assets also remains open although no firm decision has been made on that yet.

By 1300 BST, Volkswagen shares were 0.63% lower at €176.72. The stock has failed to find a steady pace in recent months but is currently higher than the level it was at the beginning of the year.

Volkswagen continues to evolve

Speaking at the AGM, Volkswagen’s CEO Dr. Herbert Diess shared some details of the plans for the German carmaker.

Diess said that while some changes had been made within the business, there is still a lot more to come from the car manufacturer.

“The Volkswagen Group is in robust shape in both operational and financial terms,” Diess said at the AGM in Berlin.

“Our strategy is gaining traction. We are systematically tackling the major automotive issues of the future. However, the longest part of our journey still lies ahead. The crucial years in our transformation have yet to come,” he added.

Diess said that changes to the company culture will be implemented as some members of its workforce are still adapting to new policies and processes that followed the 2015 emissions scandal.

“Volkswagen has to become more honest, more open, and more truthful. In other words: an upstanding corporate citizen,” he told shareholders.

Ducati, Renk futures still undecided

Another feature of the potential future of Volkswagen is what will happen to Ducati motorbikes and transmissions maker Renk.

Previous plans to sell Ducati and Renk struggled to move forward amid opposition under the former CEO Matthias Mueller. Dr. Diess said that a firm future plan for Volkswagen’s non-core business was still a work in progress.

“For non-core businesses such as Ducati, Renk and (large engines unit) MAN Diesel & Turbo, we will draw up sustainable future perspectives,” Diess said.

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