Volkswagen is considering spinning off non-core assets such as motorcycle maker Ducati and transmissions maker Renk, its new chief executive has said, as the group seeks to boost its efficiency and become more nimble.
"For non-core businesses such as Ducati, Renk and MAN Diesel & Turbo, we will draw up sustainable future perspectives," Reuters quoted Herbert Diess as saying on Thursday at the annual shareholder meeting in Berlin.
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The consideration could lead to steps to expand those businesses and to develop growth strategies, but spin-offs "are also conceivable", Diess said.
In a statement summarising official presentation remarks, Diess said: "The Volkswagen Group is in robust shape in both operational and financial terms. 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.
"In this regard, Volkswagen has to become more honest, more open, and more truthful. In other words: an upstanding corporate citizen," the CEO said.
With dieselgate in mind, VW will expand its internal whistleblower system further. For example, supplier relationships will be aligned more closely with compliance principles.
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By GlobalData"For me, good corporate governance also includes taking responsibility, penalising misconduct – and then communicating transparently," Diess said.
Independent US monitor, Larry Thompson, had called for compliance and integrity to be accorded the same importance in the group as vehicle development, production, or sales, for instance. "I unreservedly agree with this," Diess said.
"Volkswagen must act more quickly, systematically and efficiently – in making decisions and in implementing them. In other words, we must transform the group from a slow and somewhat cumbersome supertanker into a powerful fleet of speedboats," the CEO said.
"We expect 2018 to be another good year for the group," Diess said.
