Volkswagen updated its plans for electric cars with a complete overhaul of its investment strategy.
After announcing an initial investment of $10 billion in EVs earlier this year, which was still smaller than the German automaker’s investments in gas-powered cars, they now promise to spend up to 70 billion euros (~$84 billion USD) in order to bring 300 electric vehicle models to market by 2030.
More interestingly, most of the investment 50 billion euros (~$60 billion) will be in battery production in order to support their electric car ambitions for the next decade.
Volkswagen CEO Matthias Mueller said to guests gathered at an event in Frankfurt today ahead of the launch of the annual motor show (via BBC):
“A company like Volkswagen must lead, not follow. We have got the message and we will deliver. This is not some vague declaration of intent. It is a strong self-commitment which, from today, becomes the yardstick by which we measure our performance.”
Mueller has been a proponent of EVs within Volkswagen ever since he took the helms of the company following the Dieselgate Scandal, but he faced some internal backlash from the leadership.
A slide that leaked from a VW presentation about its upcoming electric vehicles showed that they have 4 new models coming under the VW brand within the next few years, but also several more under Audi, Porsche, and the automaker’s other brands.
While it’s still more talk than action, this move is significant because it would mean that the board has approved an investment schedule for electric vehicles and an investment of this size should get things going.
It’s also reassuring that they are taking battery supply seriously. We already got hints that it was coming when company officials said that they see a need for 40 Tesla Gigafactory-size battery factories by 2025 to support electric car production.
The injection of 50 billion euros (~$60 billion) to support a battery supply chain for VW’s electric cars should shake up the industry and prepare for a rapid expansion of battery production over the next few years.
With announcements like this and the recent announcements of gas and diesel-powered car bans from the UK, France, and maybe soon China, I think it’s becoming clear that EVs will move a lot quicker than most people expected.
DFractalH on September 12nd, 2017 at 05:29 UTC »
I find it fascinating to only hear the American perspective in this thread, e.g. the idea that VW did this primarily because of US regulations. I believe it is mainly due to the very collusion between government and industry that brought the scandal in the first place.
The automotive industry in Germany is extremely closely aligned with the German government. Aside from being beneficial to a superficial green agenda, it is obvious that electric cars will be important to safeguard the massive amounts of jobs the automotive industry provides here, either directly or indirectly. Furthermore, low-unemployment is the best election strategy for the ruling majority. Thus, anyone who is or could be in government has an interest in keeping those jobs, and there will be some group who believes that this can only be done by going electric.
I see VW's change of heart as a sign that the pro-electric group, both in the boardrooms of German car producers but also the German government, has now gained the upper-hand. The reasoning is environmental only second, and economic-political first: car manufacturers keep the jobs, car manufacturers remain protected by the political class.
Edit: Some ppl. who have replied seem to forget the following. Ofc. political support for VW is linked to VW sales and hence jobs, may it be bc. of image or a Chinese car ban. That's the point. If VW tanks, if the German automotive industry tanks, we will have an economic crisis on our hands here. Dieselgate is a convenient argument to finally make that shift which will prevent VW going the way of Nokia.
RavinSaber on September 11st, 2017 at 20:27 UTC »
What they aren't telling you is that there will be a small gasoline motor in the muffler that only activates when the car is not hooked up for inspections.
Iminforthat on September 11st, 2017 at 18:55 UTC »
It can't go any worse than their investment in Diesel