Published: Tue, March 13, 2018
Finance | By Loren Pratt

VW to build EVs at 16 factories by 2022

VW to build EVs at 16 factories by 2022

The Volkswagen Group plans to have electric cars wearing all 12 of its automotive brands, plus its Volkswagen Commercial operation and its trucking companies, MAN and Scania.

"Over the last few months, we have pulled out all the stops to implement "Roadmap E" with the necessary speed and determination", he says. Currently, VW produces battery operated vehicles in just three of its factories and in just two years another nine factory locations would be equipped for this goal.

When it launched Roadmap E in Europe in the third quarter of past year, the Volkswagen Group projected it would deliver 80 new EVs from two EV architectures. Müller added that from 2019, it plans to offer a new electric vehicle, "virtually every month".

X The German carmaker, one of the world's largest, will have 16 factories producing battery-powered vehicles by the end of 2022, up from three plants now, Volkswagen announced during its annual news conference in Berlin.

Volkswagen (VLKAY) has secured partners to supply $25 billion in battery orders as it gears for an ambitious global push into electric cars - a quest that could challenge Tesla's (TSLA) dominance in electric vehicles. "The contracts already awarded have a total volume of around Euro 20 billion". As we reported last September, the company is now committed to electrifying all of its brands by 2030, with 30 new plug-in hybrids and 50 new battery electric vehicles due by that date. A supplier decision for North America will be taken shortly.

Muller also made a point of emphasizing that this did not mean Volkswagen was turning its back on conventional drive systems. Modern diesel drives were part of the solution, not part of the problem, he stressed-also with regard to climate change.

"We are making massive investments in the mobility of tomorrow, but without neglecting current technologies and vehicles that will continue to play an important role for decades to come", says Müller. As part of this initiative, VW will invest almost €20 ($24.8) billion into their "conventional vehicle and drive portfolio" in 2018. Its development spend dropped 3.9 percent in 2017, down to €13.1 billion, or about 6.7 percent of its sales turnover, and it plans to lower that to six percent by 2020.

The group's net liquidity at the end of 2017 remained at EUR 22.4 billion even as overall operating profit was reduced by special items from the diesel issue of EUR 3.2 billion in 2017 compared with EUR 6.4 billion in the previous year.

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