On Tuesday, Volkswagen announced its strategy to assemble 600,000 electric cars using the brand’s MEB platform at two plants in China. The facilities, stated to be positioned in the cities of Anting and Foshan, will assist bolster EV volume soon after the completion of VW’s Zwickau plant in Germany — which the corporation previously claimed would manufacture 330,000 vehicles annually.
Even though that facility is nearing completion and supposed to be up and operating just before 2020, there’s no firm timeline in location for China. But that is the least of the problems Volkswagen ought to resolve in order to make this dream a reality.
On the very same day as the factory announcement, VW also doubled its earlier estimate of the quantity of battery cells it would have to obtain to turn out to be the world’s leader in electrification. The corporation now believes it will will need to supply extra than 300 gigawatt hours of annual provide in 2025 just to assistance Europe and Asia. Even so, this has as a lot to do with a new mandate from the European Union (which calls for automakers to lower CO2 emissions by 37.five % by 2030, vs 2021 levels) as it does Volkswagen’s personal ambitions.
As opposed to the United States, exactly where discussions are nevertheless ongoing, officials in Europe and China have generally decided that the internal combustion engine has to go. This appears to suit the modern day-day version of VW Group just fine. VW’s supervisory board currently agreed to make a 1 billion euro ($1.12 billion) battery plant in Salzgitter, Germany, not far from the Zwickau plant, on Monday. The facility will be a joint operation involving VW and Swedish companion Northvolt, with a completion date of 2022.
“Volkswagen leads the competitors on e-mobility,” CEO Herbert Diess stated at the company’s annual meeting in Berlin. “As a corporation we’ll make a results of the electric car — with the appropriate merchandise, superior underpinnings and worldwide economies of scale.”
According to Automotive News, Volkswagen does not intend to cease right here, and is currently considering sites for extra EV factories. Even though this unquestionably proves the firm’s commitment to electrification, it could conveniently spark anxiousness. A lot of media outlets are framing this as VW’s push to surpass Tesla. And but VW’s initial ground-up electric automobile hasn’t noticed the very same type of enthusiasm as solution born of the American outfit.
As a result far, Volkswagen’s ID3 hatchback has amassed extra than 15,000 pre-orders from clients placing down 1,000-euro deposits. Meanwhile, Tesla’s Model three averaged 1,800 new orders a day in its introductory year and is presently attempting to expand in each Europe and Asia. All told, Volkswagen intends to spend 30 billion euros ($34 billion) to surpass Tesla as the world’s most significant electric-car manufacturer. For its sake, we hope the work pays off.