VW under pressure: «Speed is the top priority»

Like other manufacturers, VW is also in crisis. Chief Development Officer Kai Grünitz explains how the brand intends to drastically reduce development times and compete with China.

Kai Grünitz, Member of the Volkswagen Brand Board of Management, Technical Development Division. Photos: Volkswagen

Slumping sales in key markets, ever more bureaucratic hurdles in the EU and new competition from China, who are competing with much longer spears: Like some German car manufacturers, Volkswagen is also in a tricky situation. Chief Development Officer Kai Grünitz reveals whether the situation is also due to the wrong products and how the brand intends to free itself from this predicament.

Mr. Grünitz, the German car industry is struggling. Does VW's product portfolio need to be adapted to the new conditions?
Kai Grünitz, Member of the Volkswagen Brand Board of Management, Technical Development Division: Yes, car manufacturers in Europe are currently facing challenges. But the challenge at VW is not the portfolio. We have renewed our entire combustion engine range over the past two years and will be launching an offensive with six new cars in the all-electric ID. models this year. The sales figures show how well positioned we are with the current model range. We are by far the market leader in Europe.

VW ID.Every1.

But not in China, the largest sales market...
We see enormous agility in the Chinese market. Speed is of the essence because both technologies and trends change incredibly quickly. This is why competitors there are striving to bring new products onto the market in short development cycles of around 20 to 30 months, at ever lower prices. But we have a strong plan to develop in the time and at the cost of the best Chinese competitors. The first cars of this «In China, for China» strategy will be launched in the next few months. I am confident that this will keep us in the top 3 largest manufacturers in China and make us the largest non-Chinese manufacturer.

What can a long-established manufacturer like VW do to bring development cycles up to «China speed»?
Our original product creation process - this is important, it is a creation process, not a development process - was around 54 months in the past. Two and a half years ago, we started to set up our own technical development in China. We have established many innovative processes there: the use of artificial intelligence, increased use of simulations, different team structures, agile collaboration models. This has led us to develop a new model in China in 22 to 30 months. We are now gradually transferring what we have learned in China to Wolfsburg. We are seeing the first successes with the series version of the ID. Every1. We are developing it in 36 months with a new platform variant of the MEB+, a new electronics architecture. The ID. Polo, which will be launched on the market this year, was also developed in around 36 months.

Volkswagen Brand Board Member for Technical Development

These new models should be better received than the ID.3 back then, which did not get off to a very successful start.
We received criticism of the ID.3 from our customers - and quickly rectified it. With success, the sales figures are very good. Starting with the ID. Polo, we are now taking the next step in terms of design, operation and quality. The ID.3 will also benefit from this.

In China, the connection to the digital world in the car is much more important than here. Do you want to push this topic in Europe in order to reach the Chinese level? Or is it being developed in parallel?
It's up to the customer to decide. In China, the world is much more digital. In Europe, we will have to see whether customers recognize added value for themselves. If they want these functions, we can deliver them quickly.

Cockpit of the ID.Every1.

The VW Group has neglected the full hybrid in the past, but now new models with this type of drive are being launched. Is there now a rethink because of the softening of the ban on combustion engines in the EU?
No, the HEV drive was already planned beforehand.

In which model series will the full hybrid drive be available after the T-Roc?
The VW brand also equips the Golf with it.

Kai Grünitz, Member of the Volkswagen Brand Board of Management, Technical Development Division. Photos: Volkswagen

In conclusion: What does your dream car of the future look like?
It is a car that I can customize so that it becomes my car, my Volkswagen. And this future begins next year with the ID. Every1.

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