Volkswagen Group CEO Herbert Diess told top managers that the world’s largest automaker needs to undergo a “radical overhaul” in the face of industry change or risk being pushed aside.
“The time of traditional car manufacturers is over,” Diess said in prepared remarks at an internal meeting Thursday. The company must adopt digital technology, he said, citing a recent surge in electric-car rival Tesla Inc.’s share price as evidence of a changing competitive landscape.
While VW proved relatively resilient last year, Diess said additional measures are needed because the industry change has only just begun.
He said the German automaker needs to accelerate its transformation to avoid becoming another Nokia , which lost its dominance in the mobile phone market to Apple.
“The big question is: Are we fast enough?,” Diess told VW’s senior managers. “If we continue at our current speed, it is going to be very tough.”
Volkswagen needs to get a grip on software and vehicle…