Volkswagen's ramping up EV production on a massive scale

  • Volkswagen's ramping up EV production on a massive scale

Volkswagen's ramping up EV production on a massive scale

Volkswagen shares are trading higher Tuesday, as the German auto maker announced plans to expand its electric vehicle production levels.

At the Volkswagen Groups annual media conference in Berlin on March 13, the German manufacturer announced that another 16 locations around the globe are to produce battery powered vehicles by the end of 2022.

German auto maker Volkswagen is planning to plough around €20 billion into a string of electric vehicle projects across Europe and China. A decision on the supplier for North America will be taken shortly.

When it launched Roadmap E in Europe in the third quarter of previous year, the Volkswagen Group projected it would deliver 80 new EVs from two EV architectures.

Müller said that they have designated 16 production sites that will start producing electric vehicles by 2022.

"This is how we intend to offer the largest fleet of electric vehicles in the world, across all brands and regions, in just a few years", says Müller.

Shares of Volkswagen fell 2% to 38.88 in afternoon trade on the stock market today. Its diesel-cheating scandal, which erupted in September 2015, sparked a backlash over the technology, including potential urban driving bans. Modern diesel drives were part of the solution, not part of the problem, he stressed-also with regard to climate change.

Volkswagen announced Tuesday that it had secured about $25 billion in battery supplies and technology, a sum it plans to scale up to about $60 billion as it looks to expand electric vehicle manufacturing.

Volkswagen plans to launch the first full MEB vehicle, the I.D. hatch, in 2020 as the leader for an entire I.D. The Audi luxury marque is set to begin deliveries later this year of the all-electric E-Tron SUV.

He also confirmed every single one of the Group's 300 models would have an electric variant by 2030, though in many cases this would be just a plug-in hybrid. That was just months after it promised to spend 20 billion euros (about $25 billion) on EVs and self-driving cars. In particular, it has been investing in battery projects and global pollution campaigns.

Tesla is reported to have sold 102,807 electric cars in 2017, mainly high-end models.

Managing the technology shift requires an intense focus on maintaining profitability from Volkswagen's current lineup. "In terms of operating profit, an operating return on sales of between 6.5% and 7.5% is anticipated". "And we will not cease in our efforts in 2018." said CFO Frank Witter. "Not least because we must generate the revenue we will need for our enormous future investments".