Executive Speeches
07 March 2008. Washington, DC.
Stefan Jacoby Remarks before the National Press Club
Ladies and Gentleman of the National Press Club, it is a pleasure to be with you today.
I thank you for having me.
Looking around the room this morning, I see some familiar faces from the whirlwind of recent auto shows.
I also recognize some of you from our relocation announcement last September.
Whether or not we've met over the course of the past few months, I'd like to take the opportunity today to introduce myself and tell you more about my vision and direction for the Volkswagen Group of America for the next 10 years.
I'm also here to tell you more about the global Volkswagen Group...
– our commitment to sustainable mobility, to designing safe vehicles, and to being a good corporate citizen in all 150 countries in which our cars are sold.
You may not know this, but the Volkswagen Group is the fourth-largest automotive manufacturer in the world.
In calendar year 2007, the Volkswagen Group sold more than six million, one-hundred eighty-nine thousand vehicles, world-wide.
At Euro 6.5 billion, the Volkswagen Group recorded its highest pre-tax profit….ever! Clearly, we have been a good investment for Porsche, as they have filed the appropriate documents – last Monday- to raise their stake in the Volkswagen Group from 31% to a majority interest.
Globally, Volkswagen is a major player.
Financially, we're an asset.
Socially, we are responsible as we are leaders in environmental sustainability and occupant safety.
Moving forward, we WILL be a bigger thing in the United States.
Just as we are becoming a bigger thing, here in the Washington DC area.
My objective is to link our performance here in the United States to the larger strategic global goals for the Volkswagen Group.
As the CEO of the Volkswagen Group of America, I very much want the American public to continue and nurture their love affair with our brands… But I want them to understand the clarity of our broader strategy.
I want people to know about the fuel efficient cars we produce today, but I also want them to see the Volkswagen Group's vision for a carbon neutral future.
I want drivers to know about safety innovations such as Side and Lane Assist, our Electronic Stabilization Program, adaptive cruise control, and various traction assist technologies.
Things that protect them and their passengers today…and in fact… -Volkswagen is upping its commitment on that front – Volkswagen announced this week that it will be the first nonluxury manufacturer to include an electronic stabilization system at no additional cost on every vehicle it sells…..but more on that later.
Being on the leading edge, as we are with ESP, is the result of investments in research and innovation. I want people to know we're continuing those investments so that our cars will provide even greater protection in the future.
And, I want people to know that we're a company with a conscience, and a deep seeded commitment to our local communities the world over.
In other words… We're a group of brands that have it all.
We're not just sexy. We're smart too.
That's not to say I'm different from other CEOs.
I want to sell more products. In fact, our goal is to sell 1 million vehicles in the U.S. by 2018….
But part of my vision is to not just to sell the products…but also to sell the ideas behind them.
And that happens only as people begin to understand the scope and reach of the broader Volkswagen Group.
We are a company with a tradition of combining the pleasure of driving with low fuel consumption, advanced safety technology, and a sense of responsibility for the future needs of our customers.
It's something the Volkswagen Group refers to as sustainable mobility.
We see the sustainable future set against a series of technology horizons.
We have the responsibility of leveraging today's technology while we continue to set our best minds to developing sustainable power trains for the future.
This is something Volkswagen Group does best.
Here's a few things to consider: We're diesel passenger car leaders.
Ladies & Gentlemen, “Diesel has changed.”
Since 1977, we've sold 870,000 diesel passenger vehicles here in the USA.
We see Clean Diesel at a “tipping point”, and we're well positioned to expand and strengthen our leadership position.
Of course, the Volkswagen Group pioneered light-duty, direct injection diesel – the TDI. No other drive system can beat the TDI in terms of its combination of useable power and low consumption.
Compared to the average fleet consumption of gas engines, the TDI offers a fuel savings of 35 percent.
This year, Volkswagen and Audi are bringing their diesel technology to all 50 states, with Jetta TDI sedans and station wagons and Audi Q7 SUVs.
Our JD Power friends predict that diesels will comprise 8 percent of the passenger vehicle market by 2011, and we have the vehicles available to meet this demand.
The European-market Volkswagen Passat 1.9 TDI BlueMotion, is a finalist for World Green Car of the Year award.
It follows in the footsteps of the Polo BlueMotion… a finalist last year.
BlueMotion is our European branding for our most efficient and carbon neutral versions of each Volkswagen model.
Stay tuned for the announcement of the winner at the New York Auto Show.
We ARE the global clean diesel leaders.
Structurally, Volkswagen and Audi are taking the approach of reducing weight by focusing on high tensile steel. This also allows us to increase body rigidity – and therefore both handling and safety -- without increasing vehicle weight.
Yet another win-win.
The Audi TT is light but strong example of these benefits.
Speaking of Audi…
Audi was the first to have shown a modern vehicle with hybrid drive –the gasoline/electric Audi duo, which was introduced all the way back in 1989! We're innovating again with hybrid technology. Volkswagen showcased a diesel-hybrid concept car, the Golf TDI hybrid, at the Geneva Motor Show this week.
However….
Clean Diesel and hybrids are not the only solutions.
Innovation can still happen with gasoline engines.
We're also a leader in introducing direct injection, turbocharging, and DSG transmissions to optimize fuel economy in our gasoline vehicles.
Now, let's look to the mid-term of our technology horizon.
The trends we see include transitional electric power generation and stop/start systems.
We also see future propulsion technology that will rely on energy sources such as hydrogen.
Our “spaceup! Blue” concept – which many of you may have seen at the Washington auto show -- is an example of our view of a zero-emission car of tomorrow, powered by both electric propulsion and a high temperature hydrogen fuel cell.
It's exterior design was inspired by the classic Deluxe Microbus, by the way.
And finally, our strategy for a green future also includes fuel research.
Our commitment to second-generation biofuels is a longstanding one. SunFuel, a partnership with IOGEN and Shell, is one example.
SunFuel is almost CO2-neutral and can be used to power all engines in the Volkswagen Group's current model range.
Thanks to revolutionary production technology, SunFuel is manufactured from plant residue such as straw.
SunFuel is mixable at any level with today's clean diesel and can leverage the existing United States fuel distribution infrastructure.
SunFuel illustrates how our research and development activities contribute to making mobility more environmentally compatible, more sustainable and even safer in future.
While I've used Audi and Volkswagen examples to demonstrate our commitment to the environment, I want to also take a moment to highlight efforts at another of our brands, Bentley.
In Geneva this week, Bentley announced its environmental strategy. It will reduce its average fleet emissions by 15 percent by 2012, while increasing fuel economy by 40 percent.
Bentley will also offer engines using renewable fuels available next year -- the first in its segment to do so.
So that is a snapshot of our environmental strategy and our group efforts. Protecting the environment is critical – and so is protecting our drivers and passengers.
We are making the same commitment to research and innovation in passenger safety as we are in green technology.
I promised to share more on our Electronic Stabilization Program. ESP helps reduce loss of control and rollovers.
Every single one of our vehicles – starting this summer with the 2009 model year – will have ESP standard.
That's way ahead of NHTSA's 2012 model year deadline and before any other volume manufacturer.
NHTSA, by the way, predicts that nearly 10,000 lives could be saved each year when these systems become standard on every car. Only Volkswagen in the volume segment is doing it now.
ESP is an example of the commitments our company is making today, but let me briefly share our larger vision: It's a future where vehicles will help drivers “see around corners” and avoid potentially hazardous situations. We will achieve this goal in the short term through video cameras, laser and radar technology, and sensor signals.
In 2006 Audi broke ground in this area. Our Audi Q7 was one of the first vehicles in the U.S. equipped with blind spot detection – something we call Audi Side Assist.
In 2008, this technology went even further… Lane Assist technology warns a driver who is coming close to leaving the driving lane.
In the future we see this technology moving beyond just what cars can see within the distance of their radar sensors.
Car-to-car and car-to-infrastructure communication networks will allow data to transfer almost like an electronic chain letter.
The applications are as diverse as the traffic situations themselves:
- a warning signal when the car in front slams on the brakes
- an alarm if a vehicle has broken down on a bend in the road
- an alert if another vehicle is approaching the next intersection on collision course
- an update from a traffic control center on road conditions and traffic density
- a signal from a traffic light that could trigger engine ignition before a light changes
These kinds of networks use tried and tested technological components: GPS, light and rain sensors, ESP signals and networks like those used to surf the web.
As the interaction between the driver and the technologically advanced vehicle becomes easier and more intuitive, the safety and pleasure of driving will be dramatically enhanced.
And, in many cases these innovations bring with them environmental advantages. Avoiding a traffic jam CAN save fuel.
Finally, I want to address the Volkswagen Group's corporate social responsibility agenda.
As a global company, we understand that our business actions take place in a broader social context.
This is why we place a premium on constantly improving our technology leadership, taking responsibility when it comes to the environment and being active in our local communities.
Corporate social responsibility is a key tenet of the Group's corporate culture. The Group has established an integrated CSR management system.
Our goal is to identify and implement sustainable win-win situations for the company and society.
There are many great examples of the Group's actions across the globe. I have shared some of these with you today, and I encourage you to read more about others on our web site.
Being a good corporate citizen is something we take very seriously in the U.S. and we look forward to working with our new neighbors in Virginia, the greater Washington DC community, and in our local communities throughout the country.
In closing, I would offer this.
I know we have set an aggressive course in the next ten years: A corporate relocation to Herndon, Va. that will take place over the next several months.
A clean diesel strategy that will make our TDI-powered cars available in all 50 states… and the development of new, clean technologies down the road.
The potential for a new production facility in the U.S.
A decision about whether or not we will do this, and where, will be announced in the next few months.
The increase of our car sales to 1 million by 2018 Some people suggest we may be too ambitious. And I can tell you, sometimes it feels that way.
But, I am confident in our success and the people who will help us achieve it.
We're recruiting some of the best and the brightest of minds here in the DC area and across the country.
And, when it's all said and done, it is this human element that will bring our strategy to life.
Building true cultural change begins in the hearts and minds of our people.
We have the talent and the tenacity to succeed.
We have brands overflowing with opportunity.
I look forward to sharing our accomplishments with you.
Now, and in the future.
Thank you.
