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January 16, 2020 10:45 AM, EST

VW CEO Herbert Diess: ‘Radical Overhaul’ Needed in Technology

Volkswagen AG CEO Herbert Diess by Seth Wenig/Associated Press

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Volkswagen AG Chief Executive Officer Herbert Diess told top managers that the world’s largest automaker needs to undergo a “radical overhaul” in the face of industry change or risk being pushed aside.

“The time of traditional car manufacturers is over,” Diess said in prepared remarks at an internal meeting Jan. 16.

The company must adopt digital technology, he said, citing a recent surge in electric car rival Tesla Inc.’s share price as evidence of a changing competitive landscape.

While VW proved relatively resilient last year, Diess said additional measures are needed because the industry change has only just begun.

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