Volkswagen (VW) will unveil a new concept car which will be faster and cheaper than the older models, reports Reuters.
The development would be the first of its kind under a new, decentralized system and will be presented at the Geneva Motor Show in March 2016. The designed model will emulate BMW.
The car will be developed by a different, post-Dieselgate management system.
According to Reuters, Herbert Diess, VW’s current CEO and former BMW executive – who oversaw R&D at BMW, has been pushing decentralization since July 2015.
The car to be exhibited would be an entry-level sport-utility vehicle (SUV). The road version will be developed more rapidly under the new streamlined process.
Future models of the developed car will be developed by teams with full control over technology, quality, costs and launch dates. These will go on sale in 2018.
Four new teams of about 100 experts each will focus on the main production series – small, compact, mid-size and battery-powered cars.
The cost to production time for developing a new model previously took VW 48 months, which it plans to reduce. BMW, on the other hand said that its minimum development time for a new model is just 36 months.
In September 2015, VW was caught in a scandal, now infamously called ‘Dieselgate’ During the scam, the Environmental Protection Agency (EPA) found that many VW cars being sold in America had a “defeat device” in diesel engines that modified the software fitted on the 3 liter diesel engines.
The engines were built in such a way that they could change their performance to give improved results when they were being tested. Around 482,000 cars including – Audi A3, Jetta, Beetle, Golf and Passat were found to have this software inbuilt.
The engines used in the car models mentioned emitted nitrogen oxide pollutants, up to 40 times above what is allowed in the U.S.
Profitability of VW was at 2.8 percent, way less than its actual 6 percent goal. Its French rivals PSA Peugeot Citroen and Renault raked up 5 percent and 5.1 percent respectively.
Regarding the new concept by VW, Nikolaus Lang, senior partner at Boston Consulting Group (BCG), said “Time and cost discipline can be improved very considerably through this structure.”
Analysts following the company say it could lift margins at the core brand as the parent will take the cost burden of its scandal.
Image credits – Bloomberg/Auto News. Excerpts from Reuters