Volkswagen Group Announces 9 New Electric Vehicles For 2018

Marco Green
March 13, 2018

Europe's largest automobile manufacturer Volkswagen Group on Tuesday said it was rapidly expanding its capacity to produce battery-powered vehicles and would equip 16 locations across the globe to do that by 2022.

Last year, the company said it will be spending over 50 billion euros on battery technology. VW Group says this is just to line up batteries for vehicles to be built in Europe and China; a decision about a supplier for North American production "will be [made] shortly", it said in a press release.

Volkswagen's CEO Matthais Müller announced the details of its plans to extend its green credentials at the company's annual media conference in Berlin.

I wouldn't be surprised if suppliers like LG Chem and CATL are going to benefit from this directly and the entire battery industry is going to benefit from it indirectly by locking up a lot of production capacity.

The company revealed that it is also developing as many as 80 new electric cars, which it hopes to launch by 2025.

Muller said, "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".

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. Diesel is key to efforts to meet tighter environmental targets because of its fuel efficiency, even though it emits smog-causing nitrogen oxides. Modern diesel drives were part of the solution, not part of the problem, he stressed-also with regard to climate change.

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. The Audi luxury marque is set to begin deliveries later this year of the all-electric E-Tron SUV.

Manufacturing the powerpacks themselves is not in the cards.

German auto maker Volkswagen is planning to plough around €20 billion into a string of electric vehicle projects across Europe and China. In particular, it has been investing in battery projects and global pollution campaigns. The R&D ratio, total research and development expenditure as a percentage of the Automotive Division's sales revenue, decreased to 6.7% from 7.3%.

Managing the technology shift requires an intense focus on maintaining profitability from Volkswagen's current lineup.

The Sedric EV debuted at the Geneva Motor Show in 2017, and then appeared again this year kitted out as an autonomous, four-passenger micro school bus, complete with the signature loud yellow paint job we most often associate with getting to and from the locus of education. "Not least because we must generate the revenue we will need for our enormous future investments".

Other reports by Click Lancashire

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