Volkswagen CEO: smart cars are the industry’s real ‘gamechanger’

Volkswagen head Herbert Diess says the auto industry's real gamechanger is software and autonomous driving.Volkswagen head Herbert Diess on Sunday said autonomous cars, not electric vehicles, were the"real gamechanger" for the auto industry, which is facing the end of combustion engines in Europe by 2035.

"Autonomous driving is going to change our industry like nothing else before," Diess said in Munich ahead of the official opening of the IAA car show, adding the shift towards electrified cars was"kind of easy" in comparison.Diess spoke as environmental pressure on the auto sector is ramping up, with the European Commission in July proposing an effective ban on the sale of new petrol and diesel cars from 2035.

Diess, who was confronted by Greenpeace activists before entering the venue on Sunday, is therefore not only aiming to overtake Tesla and turn Volkswagen into the world's largest seller of electric vehicles by 2025. He also wants to make software services for autonomous cars a key pillar of the group's future business, which is why Volkswagen has bought into self-driving software startup Argo AI, a competitor to Alphabet Inc's Waymo.

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