Volkswagen: VW increased investment in electric mobility

11:45am

"Over the coming five years to the end of 2023, the company will be spending nearly 44 billion euros alone on the future issues of e-mobility, autonomous driving, new mobility services and digitalisation", VW said in a statement.

The carmaker also plans to increase the productivity of its factories by 30 per cent by 2025, by building more vehicles with different brands on the same production line, it said. It wants to lower the carmaker's research and development ratio at the group's automotive division to six percent of revenues from 2020 onward.

The Wolfsburg-based manufacturer, which plans to have some of the new offering in the market by 2023, said the 44-billion euros ($50 billion) investment in what CEO Herbert Diess describes as an "electric offensive", includes an imminent partnership with United States carmaker Ford Motor.

Nevertheless customers have remained loyal, helping Volkswagen to record sales previous year. German peers Daimler AG and BMW AG have cut their outlook, while Toyota Motor Corp. and General Motors Co. reported strong results.

Volkswagen is also considering building a new plant in Bulgaria or Turkey, as two Czech Skoda factory is already working nearly at the limit of their capabilities, and clearly will not be able to take all models of the parent company.

Labor unions, who control half the seats on Volkswagen's supervisory board, need to sign off on the plan to create global production capacity for 1 million electric vehicles by 2025 amid their concerns that assembling battery driven cars will require fewer workers. Another 15% is expected to be hybrids, which combine an electric motor with a traditional internal combustion engine, and 60% of the cars will be powered by gasoline or diesel engines that are more fuel-efficient than today. With less complexity and fewer model variants, VW may be able to produce the auto in roughly half the time needed to assemble a Golf hatchback, according to the people.

Volkswagen is converting three of its German plants from internal combustion to battery auto production as it pivots away from diesel vehicles in the wake of its emissions scandal.

The plant in Emden will specialise in building small electric cars and sedans for several of the group's brands, while the Hanover factory will make the ID Buzz, the clean-energy version of VW's iconic camper van.

Money for programs related to elektromobile, the company intends to seek at the expense of multi-billion dollar saving programs in the production of other models.

VW expects significant synergy effects from this alliance, which may allow potential for developing a next generation Amarok pickup truck series and more SUVs, Diess said.

Diess said any arragement with Ford would exclude business strategy, marketing and pricing.

He added: "That was never the goal of these talks. Ford remains a competitor".

Related News:



Most liked

Monica Lewinsky revisits scandal on her own terms in new docuseries
She described that period being very hard for her, so hard she contemplated taking her own life as she was still in love with Clinton.

Priyanka Chopra picks Abu-Sandeep for her bridal attire
Believe it or not, Nick Jonas , 26, has now been living with type 1 diabetes for over a decade. 'On the right is me now. Isn't that sweet? We're swooning! He encourages his fans to do the same, and thanks those who have supported him.

South Africa's Ramaphosa to repay campaign donation
The relationship between money and political power, as one former Ghanaian president once remarked, is as old as politics itself. President Cyril Ramaphosa replying to questions orally in the National Assembly in Parliament on 6 November 2018.

U.K.'s Royal Mail suspends shipments to Canada amid strikes
There's also people sending presents through the mail to loved ones, that could be affected by job action. All three have been shut down several times since the walkouts began October 22.

Irish PM says European Union would insist on hard border without Brexit deal
He added: "We must be clear on the fact that a no-deal outcome would be disastrous for Northern Ireland, particularly for the agri-food sector".

Missing Argentine navy submarine ARA San Juan 'imploded' at sea
It was refitted between 2008 and 2014 which involved it being cut in half and having its engines and batteries replaced. The company was responsible for the search for the missing vessel and was commissioned by the Argentine government.

Pakistan doesn’t do ‘a damn thing’ for U.S. , says Donald Trump
The United States has already canceled $300 million in aid to Pakistan for its lack of decisive action against militant groups. Trump responded with a "they took him down - but" and then continued to point out how much aid the US gave Pakistan.

Netanyahu takes on defense post amid call for early polls
After Lieberman's withdrawal, Netanyahu's government was left clinging to a one-seat majority in the 120-seat parliament. On Wednesday, Israeli Minister for Military Affairs Avigdor Lieberman resigned over a ceasefire deal with Gaza.

David Arquette bloodied in wrestling 'death match'
Yet the fight continues as Gage stomps Arquette, Arquette hits Gage with a chair, and Gage pins Arquette for a three-count. Gage smacked him with a light-bulb tube, and the blow caused a cut to Arquette's neck, which began to bleed profusely.

Fortnite Challenge Guide (Week 8, Season 6): Fish Trophy Locations
Although they are practically in the same locations as season 5, we've compiled a guide to track down those clay pigeon shooters . You need to finish at least four of the seven tasks each week to earn the reward and can do this any time before season 6 ends.

So...Apparently Floyd Mayweather Fight With Tenshin Nasukawa Is Back On
Floyd Mayweather and Tenshin Nasukawa are set to fight on December 31 in Japan. If he hasn't made nine figures, he's not the A-side. Mayweather", RIZIN said in a statement.

Journalist criticised for 'sexist' Ocasio-Cortez tweet
Despite having $7,000 saved , she can not afford to live in the expensive DC area until she receives her salary from Congress. Scarry's tweet was nearly immediately criticized, causing many, even Dictionary.com to chime in.

Little Mix speak out against 'double standards' for career women
And pop group Little Mix have aligned themselves with women everywhere in a moving campaign for new single Strip . Jesy told The Sun newspaper : "The best stuff comes from us".

Nintendo Is Not Considering An N64 Classic, Says Reggie
Nintendo has found great success with its Classic console lineup, selling over 10 million combined NES and SNES Classic Edition consoles.

Kim Porter’s Death Is Now Under ‘Additional Investigation’ After Completion Of Autopsy
In the call that was placed to 911 today, it was said that she was experiencing cardiac arrest. Sources told TMZ that Porter had suffered from either pneumonia or the flu before her death .