VW To Spend $50 Billion In Push To Launch 50 Electric Cars By 2025

Ahh the EV announcements come daily from VW and while we’re truly excited about what’s to come, we can only hope that it’s all a reality in the making.

How about a grand slew of affordable EVs that can perform like that of Tesla vehicles? How about long-range electric vehicles that you can buy just about anywhere and everywhere that are truly impressive in so many ways? We’re talking about a whole lineup of electric cars and SUVs that are designed to appeal to the masses. Volkswagen says it’s ready to make that happen.

Honestly, VW Group as a whole — arguably above any other automaker — has the finances, resources, and capacity to pull this off with ease. Based on its multitude of announcements, the company is well aware that it can (if it chooses) make this an incredible reality. Let’s cross our fingers and push hard for it to come to fruition.

Following in the footsteps of Hyundai’s announcement that it has secured more battery cells to make to enough Kona EVs to satisfy growing U.S. demand, and also on the heels of Rivian’s huge announcement of a viable all-electric adventure-based pickup truck and 3-row SUV. Now, VW Group has announced another massive investment over the next five years, in an obvious attempt to keep up with the newfound switch to EVs. The company is also now increasingly touting its upcoming connected services and self-driving tech.

As this press release reveals, VW has added a budget of another $11 billion between now and 2023 to bring its total investment up to $50 billion, which will help efforts to release some 50 new electric vehicles by 2025. The automaker claims to have the capacity to manufacture up to 15 million EVs on its new MEB platform within that suggested time frame.

Source: Automotive News Europe

This article originally appeared on Inside EVs.

 

[Sean Wagner]

I think the assumption should be that the 30b EUR are meant for capital investments in plant and product inside five years.

The numbers for battery cell supply contracts [over a more indeterminate period] that were publicly aired / bandied about somewhat earlier were substantially higher, but [I felt] less concrete.

Plans are becoming a lot more detailed, and while numbers are changing, they're being revised upwards. Diess talks about scale in conjunction with profitability in EVs.

Remember he's an engineer with a PhD and a successful career in the business, which is why VW lured him away from BMW. The number that bears scrutiny is the aim to lower overall costs by 30%. That's a pretty wild target for a company operating on VW's scale, but again, one part of the solution has been presented.

 

[SageBrush]

The number that bears scrutiny is the aim to lower overall costs by 30%.

PHEVs are cheaper to produce than BEVs, and I presume that in the VW PR Dept a VW PHEV is a Tesla competitor.

Double Meh

 

[Sean Wagner]

The scope encompasses the entire VW group. Quote from the document linked further up:

...
In production we are focusing more closely than before on the potential
of our brand alliance. We are also harnessing the advantages of our
platform strategy. In other words, an increasing number of vehicles from
different brands based on the same platform will be built at the same
plant. That makes production, logistics and cooperation with suppliers
more efficient. The number of multi-brand plants will grow over the
coming years. Our target is a 30 percent increase in productivity in our
production network by 2025.

Both the capital expenditure ratio and the research and development
ratio in the Group’s Automotive Division are to continue to decline to a
competitive level of 6.0 percent from 2020 onward – despite the
extensive investments in future technologies. The net cash flow target
of a minimum of €10 billion by 2020 remains valid.
...

End quote. I really think it's time to sit up and take notice.

 

[rycart]

First, I'm glad that a major car company is making this kind of investment, rather than dipping their toes in like most US automakers. That said, I wouldn't start celebrating yet. Some issues:

1. VW has created a tremendous brand problem for themselves, especially with drivers that care about being eco-friendly. As a victim of "dieselgate," I would never, ever purchase a product from them again. "fool me once..."

2. VW's are notorious for having electrical problems. Again, I speak from experience. In a 6 month span of time, my radio shorted out, my alarm system shorted out (setting off the alarm randomly, which was fun), and I burned out 2 head lights, a tail light and a turn signal, shorted out the front crash sensor, and after having it replaced, it shorted out again in a week! I was more than happy to give that car back to VW. So, if you can't get reliable electrical systems in ICE cars, good luck creating a reliable EV.

3. Charging networks as previously identified.

Again, glad they are investing. I'd love to see a world where 90% of the vehicles are EVs. My confidence in VW's ability to create a viable, reliable, attractive car that gains mass adoption in not particularly high.

 

[SageBrush]

The only car company I can think of that thrives on hyperbole (read: puts on more BS) than VW is GM. As for which corporation is more scummy, that is tough but VW wins.

 

[Leon 2.0]

A good investment does not seem misplaced.
Maybe VW will start understanding kW and kWh.
I saw this in my e-Golf yesterday.
Energy usage in kWh/h also known as kW..

 

[ItsNotAboutTheMoney]

PHEVs are cheaper to produce than BEVs, and I presume that in the VW PR Dept a VW PHEV is a Tesla competitor.

Double Meh

PHEVs have been cheaper than BEVs, but the cost reductions in batteries and power electronics are changing that.

 

[ItsNotAboutTheMoney]

A good investment does not seem misplaced.
Maybe VW will start understanding kW and kWh.
I saw this in my e-Golf yesterday.
Energy usage in kWh/h also known as kW..

It's funny to see, but it is correct, and it clarifies the implication for the driver.

 

[SageBrush]

Maybe VW will start understanding kW and kWh.
I saw this in my e-Golf yesterday.
Energy usage in kWh/h also known as kW..

I've seen Tesla use the same units in their advertisement of the home battery. I had the same reaction as you until I thought about it and realized that most people do not realize that power is a rate. They think it is an amount.