Volkswagen AG has extended Thomas Schäfer’s contract as Brand CEO of Volkswagen Passenger Cars until 2030, aiming to ensure continuity in leadership amidst the automotive industry’s transition to electric mobility.
Confirming the extension to the German Press Agency (DPA), a Volkswagen spokesperson disclosed that Schäfer, who assumed the role in mid-2022 after leading Skoda, will continue to spearhead Volkswagen’s strategies through the next decade. His original three-year contract, set to conclude in mid-2025, has been prolonged by an additional five years.
Schäfer’s tenure at Skoda was marked by expanding the brand’s market appeal and implementing cost-control measures, skills that are now pivotal as he aims to enhance profitability at Volkswagen’s core brand. Alongside Group CEO Oliver Blume, Schäfer is focused on improving returns through efficiency programs.
In the realm of electric mobility, Schäfer inherits Volkswagen’s existing MEB model range and is poised to introduce the ID.2all, a compact electric car priced at 25,000 euros. This model targets new customer segments and responds to demand for affordable electric vehicles from a German automaker.
However, challenges persist as Volkswagen navigates competitive pressures. Negotiations with Renault for the ID.1, a potential cost-saving collaboration, faltered with reports indicating Volkswagen’s decision to terminate discussions. Meanwhile, competitors like Stellantis are already rolling out electric cars priced slightly lower, highlighting the competitive landscape.
In China, once a lucrative market, Volkswagen faces shifting consumer preferences in electric vehicles, prompting collaborative efforts such as partnerships with Xpeng under the oversight of China CEO Ralf Brandstätter.
