Volkswagen AG chief executive officer Martin Winterkorn told shareholders at the automaker’s 55th annual shareholders meeting on Tuesday, May 5th, 2015 that the group will address the various weaknesses facing it today.
Winterkorn, who in April survived the public showdown that triggered the resignation of Volkswagen AG’s then-chairman Ferdinand Piech, made it clear that the company isn’t going to sit still. Instead, he said that the group plans to tackle the trouble spots, which Piech complained about in provoking the leadership crisis in April.
Three of the biggest business challenges facing VAG today are:
- Cutting costs at the Volkswagen passenger cars brand to improve its profitability
- Turning around the Volkswagen brand’s slumping North American operations, and
- Building a powerhouse mid and heavy trucks business to challenge sector leader, Daimler
These three issues have been rumored to be the primary catalysts for Piech’s discontent with Winterkorn. Here’s to hoping that VW fixes them up pronto, because addressing the second item on the list won’t be easy.