VW to expand production in electric vehicle offensive

VW to expand production in electric vehicle offensive

Troy Powers
March 17, 2018

As part of its Roadmap E electrification initiative, the Volkswagen Group has announced it is expanding production of electric vehicles (EVs) worldwide on a "massive scale".

By 2025, the VW Group intends to build up to three million electric vehicles annually across brands including Audi, Porsche, Skoda and Volkswagen. The automaker has also revealed that it wants to set up 16 new electric vehicle production facilities and the brand is keen to launch around 300 different electric-powered models by 2030. In total, the Wolfsburg-based automaker has said it plans to purchase about 50 billion euros in batteries as part of its electric-car push, which includes three new models in 2018 with dozens more following.

Matthias Muller, chief executive of Volkswagen AG, made the announcement at the VW Group's annual conference in Berlin. The CEO of the firm has proclaimed that next year the firm is likely to introduce a new electric battery -driven auto prototype, thereby offering the largest electric vehicle fleet across the globe. In the European Union, there is also a new, more time-consuming test procedure for determining pollutant and carbon dioxide emissions as well as fuel consumption in passenger cars and light commercial vehicles (WLTP). This rapid expansion in EV production will require a reliable supply of batteries, which is why the Group has already formed partnerships with battery manufacturers in Europe and China.

It has already chosen its battery cell suppliers and has locked in technology contracts worth up to US$25 billion for the Europe and China alone, he admitted, with United States deals set to follow.

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It's starting to look like China will lead the world in adoption of plug-in electric cars, but which carmaking nations will follow it? The company will shortly launch it mass-market Model 3. Volkswagen is also now a Zacks Rank #1 (Strong Buy) and sports an "A" grade for Value in our Style Scores system. "We are putting nearly Euro 20 billion into our conventional vehicle and drive portfolio in 2018, with a total of more than Euro 90 billion scheduled over the next five years", he added.

Last year, it generated $8 billion in global revenues. The first MEB-produced model should come in 2020.

It's more than the $84 billion (81 billion euros) investment in electric cars and batteries that they plan to make over the same period.

While the entire world automobile market is thriving towards zero emission pure electric mobility, Volkswagen has its own reason to do so.