Volkswagen AG Shift OUTLOOK Electrification, digitalization, Shift. INSIGHT and automation The Volkswagen SustainabilityMagazine Volkswagen The point the way Learning lessons to the future. from a scandal – dealing with mistakes openly November 2016 November The Volkswagen Sustainability Magazine 2016 VW_Magazin_Umschlag_ENG_210x280_PSOucV3_RZ03.indd 4 20.12.16 10:38 Shift Shift means to move, change, or change gear – making it a fitting motto for a company that needs to reinvent itself to stake its claim to the future. As a fixture on the computer keyboard, this word is also familiar to virtually everyone in our global IT culture. “Shift. The Volkswagen Sustainability Magazine” has a sound of permanence about it. This is intentional. Shift isn’t a flash in the pan; it’s the expression of an attitude that will continue to shape our dialogue in the future. We are self-critical and argumentative – and we mean to remain so. On that note: let us hear your opinion at Our contribution to CO2 reduction. [email protected] We protect moors because they protect our climate Moors worldwide store twice as much carbon as forests. What’s more, they take up an additional 250 million tonnes of CO2 every year. However, many moors have already been drained, dug up for peat, built on, or used for agriculture. To protect intact moors and restore dried-up moor areas, Volkswagen Financial Services has been working together with Germany’s Nature and Biodiversity Conservation Union (NABU) since 2009. In Germany alone, Volkswagen Financial Services is supporting 13 moor conservation projects. The first international projects are taking place in Poland. VW_Magazin_Umschlag_ENG_210x280_PSOucV3_RZ03.indd 5 20.12.16 10:38 The Volkswagen Sustainability Magazine 3 Editorial Dear Readers, Garcia Sanz, who is supervising the pro- September 18, 2015, was the day a viola- cessing of the diesel issue, as he recalls tion notice from the US Environmental difficult negotiations in the US. Protection Agency (EPA) triggered the The further essays, reports, and info- crisis that led to a serious loss of trust in graphics in this issue provide informa- the world’s largest car manufacturer and tion about how Volkswagen aspires to great damage to its reputation. help shape the transformation of manu- How can a company that has so fla- facturing and mobility in the future. In grantly broken its promise to society talk these articles, sustainability is under- Michael Scholing-Darby, about sustainability again without fear stood as the sometimes difficult task of 62, works in Public Affairs of derision and ridicule? That was the managing conflicting aims – in the con- and Sustainability at Volkswagen AG. As Head question. This magazine, which comple- viction that trust can be regained only if of Political Communication, ments our traditional Sustainability Re- such conflicts are laid bare. he engages in dialogue with critical stakeholders port, is an initial answer. Also read the debate between Dr. even in turbulent times. Even this magazine doesn’t deliver Ulrich Eichhorn, Head of Group Research the promised no-holds-barred explana- and Development at Volkswagen, and tion of the emissions affair. We (still) Dr. Axel Friedrich, cofounder of the ICCT, can’t say exactly how these things came who helped blow the whistle on the scan- about – the law firm appointed to look dal. In a pro-and-con exchange on the “The into the matter has yet to complete its emotional issue of SUVs, Dietmar investigation. Oeliger, transportation expert at the Ger- question is: In this situation, we have given the man environmental group NABU, cross- How can we floor to our stakeholders – a customer, es swords with Volkswagen strategy head an employee, a car dealer, an investor, a Dr. Thomas Sedran. talk about Wolfsburg-based businessman, and even It is worth noting that even those sustainability the Managing Director of the Interna- who feel especially disappointed by tional Council on Clean Transport (ICCT) Volks wagen were prepared to participate without and the former head of the EPA. Klaus in this project. We thank them for their Töpfer, the former Executive Director of willingness to do so. And of course we drawing the United Nations Environment Pro- also wish to thank our many colleagues ridicule?” gramme, has also contributed an incisive from the Group divisions for their sup- commentary on “Dieselgate.” port. This shift in sustainability commu- Dr. Christine Hohmann-Dennhardt nications wouldn’t have been possible is to play a central role in ensuring that without them. Volkswagen never again commits such a violation of the rule of law and decent Kind regards, behavior. In an interview, the new – and first ever! – woman on the Management Board freely admits that her job isn’t “a walk in the park.” And surprising in- sights are afforded by Dr. Francisco J. Cover: Mathis Rekowski / 2 agenten; Portrait: Uli Knörzer Portrait: / 2 agenten; Rekowski Mathis Cover: Shift 4 Insight Content Insight 06 A year marked by crisis The Volkswagen Group faces its greatest test ever. 08 Motor of change Prof. Dr. Klaus Töpfer calls on the company to make the crisis a lever for change. 11 Lobbyism and sustainability: Two sides of the same coin An analysis by Dr. Thomas Steg. 12 What others are saying Disappointed partners demand transparency and a new start. 15 Uncovering the truth 17 Tough, but fair 23 Making way for good ideas or just tactics? Dr. Francisco J. Garcia Sanz looks back Dr. Karlheinz Blessing appeals for less The Communications division explains at negotiations that were both strenu- hierarchy and more courage. why they speak the way they do. ous and instructive. 24 Sustainability – getting it right 16 Unsparing scrutiny 18 Descent and delisting: this time Necessary remarks on an ongoing Volkswagen falls hard Nine bright minds show Volkswagen the investigation. Autumn 2015 dealt VW a severe blow – way to the future. and not just to the Group’s share price. 26 Electric, connected, 19 You can’t demand trust shared – the future of mobility “ Technical From Jürgen Gietl, well-intentioned Matthias Müller says where the journey defects advice for a battered company. will take us, and what Volkswagen can expect. can be 20 “I knew this job wouldn’t be a walk in the park.” repaired Dr. Christine Hohmann-Dennhardt in the shop. fields critical questions from Shift. 22 A new, better Volkswagen Group Trust The TOGETHER strategy marks out can’t.” the course for change. Prof. Dr. Klaus Töpfer The Volkswagen Sustainability Magazine 5 PUBLISHING INFORMATION PUBLISHER (RESPONSIBLE ACCORDING TO THE GERMAN PRESS LAW) Volkswagen AG Michael Scholing-Darby Outlook Public Affairs and Sustainability Letter box 1882 38436 Wolfsburg 28 The car of the future PROJECT MANAGEMENT is not a car Dr. Thomas Steg Head of Public Affairs and In its Future Centers, Volkswagen is Sustainability working on new mobility concepts. CONCEPT AND REALIZATION Rat für Ruhm und Ehre GmbH, 34 Drive me home, Jack! Düsseldorf/Berlin Intelligent vehicles should make Chief Editor mobility safer and more comfortable. 38 What comes out the back Sepideh Honarbacht is all that matters DEVELOPMENT AND CREATIVE 36 Fully connected, but transparent Dr. Ulrich Eichhorn and DIRECTION and vulnerable to attack? Dr. Axel Friedrich in a Shift debate. Angela Ziegler (ZIEGLER., Berlin) Andrea Voßhoff and Markus Beckedahl Image Editor Anne Grobler expect data protection and security. 42 Climate killer Layout or driver of progress? Jochen Starz, Angela Ziegler Dr. Thomas Sedran and Dietmar Oeliger, for and against the SUV. STAFF FOR THIS ISSUE Project Management Daniela Blaschke 44 Room to move (Volkswagen AG), Tanja Iwas (Rat für Ruhm und Ehre) in the digital workplace Text New technologies and agile methods Daniela Blaschke, Anette Frisch, are changing the company. Sepideh Honarbacht, Jens Karbe, Sascha Kummle, Gerhard Prätorius, Klaus Richter, Michael Scholing-Darby, 50 Focus on human rights Sibel Şen, Valdis Wish What Volkswagen can contribute: Images a look at a broad field of action. Ériver Hijano, Uli Knörzer, Ole Häntzschel, Daniel Hofer, Roland Nie- paul, Mathis Rekowski / 2 agenten, 52 Long march to sustainability Twinset In China, citizens and government COPYEDITING are embarking on a new way of Textklinik, Düsseldorf thinking. LITHO twentyfour seven 53 Facts, figures, and data creative media services GmbH, Berlin From the Sustainability Report 2015. PRINTING oeding print GmbH, Brunswick www.oeding-print.de Paper The printing of this publication causes emissions PAPYRUS RecyStar Polar of about 3.4 tons of carbon dioxide. Volkswagen Edition has made an additional capital contribution to 4,000 copies the German Moor Protection Fund of the NABU which will allow a corresponding amount of Press deadline XQ4 emissions to be bound in the earth long-term. Dieses Druckerzeugnis wurde mit dem Sept. 30, 2016 Illustration: Mathis Rekowski; photos: Ériver Hijano (2), Daniel Hofer Ériver photos: Rekowski; Mathis Illustration: Blauen Engel ausgezeichnet. Shift 6 Insight A year marked by crisis A notice of violation issued to Volkswagen by the US in September 2015 launched the toughest endurance test in the company’s history. TEXT Sibel Şen CO values 12/9/2015 2 Rude awakening There are indications of potential The US Environmental Protection Agency irregularities in the CO2 values. (EPA) announces that Volkswagen has The company informs authorities used a “defeat device” to manipulate and the public. However, tests su- measurements of nitrogen oxide (NOX) pervised by the KBA dispel suspi- emissions in diesel cars in the US. This cions of incorrect fuel consumption software has been installed in eleven mil- measurements. lion vehicles worldwide, over five million belonging to the VW brand. The decision to enter the US diesel market lies a decade back. A profit warning four days later causes the share price to collapse. 1/4/2016 9/18/2015 US lawsuit The US Justice Depart- 9/23/2015 ment files suit against Volkswagen for violating § environmental laws.