Goals and Key Performance Indicators of the Group’s strategy
The strategic initiatives describe how we intend to achieve our vision of becoming one of the world’s leading providers of sustainable mobility. For this purpose, we have defined four targets dimensions – excited customers, excellent employer, role model for environment, safety and integrity, and competitive profitability – which are designed to help us grow sustainably.
Although these target dimensions apply throughout the Group, the strategic KPIs that we will use to measure how well we have implemented our Group strategy will depend on the business model. The business model for our passenger car brands is thus different not only from that of our truck and bus brands, but also from that of power engineering and our services business. In the following we describe the Group’s strategic goals attached to these targets. The strategic KPIs of the competitive profitability target dimension have been defined and anchored uniformly in the Group. As the new Group strategy has yet to be specified in detail, the content of the strategic KPIs in the other targets is still being determined.
Target dimension: excited customers
This target dimension focuses on the diverse needs of our customers and on tailor-made mobility solutions. We aspire to exceed our customers’ expectations, generating maximum benefit for them. That calls not only for the best products, the most efficient solutions and the best service, but also for flawless quality and an outstanding image. We want to excite our existing customers, win over new ones and retain their loyalty in the long term – because only loyal and faithful customers will recommend us to others.
The strategic KPIs include, for example, the loyalty rate, conquest rate and breakdowns.
Target dimension: excellent employer
Skilled and dedicated employees are one of the keys to sustainable success. We wish to promote their satisfaction and motivation by means of equal opportunities, a modern and attractive working environment, and a forward-looking work organization. An exemplary leadership and corporate culture forms the foundation for this, enabling us to retain our core workforce and attract new talent.
The strategic KPIs of this target dimension include the Group’s attractiveness as an employer as determined internally by means of the opinion survey and as perceived externally, as well as the equality index.
Target dimension: role for the environment, safety and integrity
Every day, we at the Volkswagen Group assume and exercise responsibility in relation to the environment, safety and society. This sense of responsibility informs all our thoughts and actions in equal measure in all the decisions we take.
We pay particular attention to the use of resources and the emissions of our product portfolio as well as those of our locations and plants, with the goal of continuously reducing our carbon footprint and lowering pollutant emissions. Through our innovations and outstanding quality we offer our customers maximum product safety.
We want to regain and strengthen the trust of our customers and restore the Group’s positive public image. The most important principles in this process include compliance with laws and regulations, the establishment of secure processes, and dealing openly with mistakes so that they can be avoided or rectified in the future. In terms of integrity, Volkswagen aims to become a role model for a modern, transparent and successful enterprise.
The strategic KPIs of this target dimensions include the decarbonization index and emissions figures, as well as compliance, process reliability and a zero-defect culture.
Target dimension: competitive profitability
Investors judge us by whether we are able to meet our obligations as regards interest payments and debt repayments. As equity holders, they expect adequate dividends and a lasting increase in the value of their shares.
We make investments with a view to achieving profitable growth and strengthening our competitiveness, thus keeping the Volkswagen Group on a firm footing and ensuring it remains an attractive investment option.
The goals we have set ourselves are operational excellence in all business processes and to become the benchmark for the entire industry.
The strategic KPIs are operationalized for internal management purposes: target and actual data are derived from Volkswagen Group figures.
(XLS:)  Download |
STRATEGIC KPIS: COMPETITIVE PROFITABILITY |
||||||
|---|---|---|---|---|---|---|
|
2015 |
2025 |
||||
|
||||||
|
|
|
||||
Operating return on sales1 |
6.0% |
7 to 8% |
||||
Research and development ratio (R&D ratio) in the Automotive Division |
7.4% |
~6% |
||||
Capex/sales revenue in the Automotive Division |
6.9% |
~6% |
||||
Net cash flow in the Automotive Division |
€8,887 million |
Positive, to allow a distribution ratio of 30% |
||||
Net liquidity in the Automotive Division |
€24,522 million, 11.5% |
~10% of consolidated sales revenue |
||||
Return on investment (ROI) in the Automotive Division |
−0.2% |
>15% |
||||