Volkswagen To Triple Electric Drive Spending Over Next 5 Years

3 months ago by Mark Kane 20

Volkswagen I.D. Crozz

Volkswagen’s new investment plan for the next five years (through 2022) details a huge spending spree on electrification, in parallel to further improvements of combustion engines.

Volkswagen Golf GTE Atlantic Blue

While also improving efficiency of ICE cars by 10 to 15%, Volkswagen intends to invest about €9 billion ($10 billion) into electric drive technology (HEVs, PHEVs, BEVs),

€9 billion is about three times the amount already spent over the previous five year period.

VW’s Chief Executive Matthias Mueller said:

“Even though modern combustion engines will be relevant for at least another 20 years, it is clear that the future will be ruled by electric drives,” Mueller said, citing a need to respond to “epochal changes” in industry.

“What’s at stake is to develop a future-proof drives portfolio as a basis for transforming the core autos business,” Mueller told an auto industry conference in Vienna.

Searching to cut costs in all areas, Volkswagen will reduce the variety of its conventional engines by some 40% by 2020.

source: Reuters

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20 responses to "Volkswagen To Triple Electric Drive Spending Over Next 5 Years"

  1. Spoonman. says:

    They could start by selling the goddamn E-Golf in every state. New Jersey dealers won’t even sell one to a Pennsylvania resident.

    1. TP says:

      +1000.

      It would be nice if VW and others would at least allow you to special order their EV in places the dealers do not currently carry BEVs.

    2. menorman says:

      I second that, especially since the 2017 model looks like a decent entrant into the market. Perhaps they might finally take that step and release it nationwide once it hits dealerships.

      1. rawlsio says:

        Not sure it will make you feel better, but we can’t get the 2017 e-Golf (124 mile range) in California either. Latest word is that there are plenty available for shipment (already shipping in Europe for a few months), but VW is stalling while waiting for all their 2016 e-Golfs (84 mile range) to sell through before putting the 2017 in sale. In fact, one dealer told us that they will wait several more months, then release the 2017 model as the “2018”. In fact, if you google 2017 e-Golf you will get a link to a VW page that gives you the 2016 e-Golf specs…

  2. Toni says:

    “€9 billion is about three times the amount already spent over the previous five year period.”

    They’ve spent €3 billion so far? And the only EV thy have is the e-Golf (which is just a ICE car with batteries in it)?

    1. jpo234 says:

      The e-Golf is based on the MQB platform. The platform was introduced in 2012 with an electric drive train in mind. So, this is not really just an electrified ICE car but a BEV built on an agnostic platform.
      That’s somewhere in the middle between ICE car with batteries and build as BEV from the ground up.

    2. Karsten Nyblad says:

      They also have the E-Up, but that car is so small that I doubt they will sell it in USA.

  3. DJ says:

    Is any of this investment the mandated $ which has to be spent in the US on charging infrastructure?

  4. Mark C says:

    Cool picture of a concept car. Great announcement of something coming later.

    Now, if we could just hit “Block Sender” to all the VW “great products coming in the distant future” announcements, the world would be a better place.

    1. Nada says:

      America is a small market for VW so they dont bring their complete product line here…
      I beleive they have five plug ins theree BEVs and rwho pkugin hybrids…
      Egolf, eup, golf gte, passat gte, and some plug in van they are supposed to start selling in Europe…
      Plus that 3 billion probably also covers porsche and audi…

      When the new eGolf finaly gets to the US it is supposed to be available nationwide…

      1. Rob Stark says:

        And America is a small market for VW because they don’t bring their complete product line here.

        1. Asak says:

          It’s not that simple. Some manufacturers simply do better in different regions (usually their home region). All of these companies are competing hard to win buyers from one another. If VW thought they could get a bigger foothold in the US have no doubt they would try.

  5. Someone out there says:

    $9 billion is plenty for a well stocked gigafactory. If they are going to compete with Tesla they will need it.
    And no, the combustion engine will not remain relevant for the next 20 years. When battery packs dip below $80/kWh around 2022 the ICE is dead.

  6. jpo234 says:

    Please keep in mind, that the $9bn is the money specifically allocated for investment in electric cars. There are a lot of other investments especially in R&D (autonomous driving, chassis, manufacturing) that are drive train agnostic and will those benefit electric cars as well.

  7. Martin T. says:

    So VW cut out all the Diesels and that would reduce engines by 40% overnight.
    VW is well behind on Hybrids.
    They won’t sell Electrics as their service and spare parts sales would take a big hit – considering their brake pads / discs and other parts have both a short life and expensive price when compared to Asian or USA brands. I wonder how much market share VW will loose while they mess around trying to figure out which way is up out of the so called clean diesel scam.

    1. jpo234 says:

      VW Group has some very nice hybrids. A3 etron, Panamera Hybrid, Audi Q7 and Audi Q8 etron,…

    2. Karsten Nyblad says:

      Actually VWs diesel engines are the best when it comes to polution. Yes, that is right, The other brands are worse. I fail to see why they should cut that diesel program. Please note that the European Union has made it attracktive to build diesel cars, since they generate less CO2.

      1. YB says:

        Because Diesel at its best is pouting polluting polluting Period. It poisons the brains of fetuses and babies world wide.

    3. Richard says:

      ….not to mention the VW stealerships are thieves…. here in Canada a MAF sensor installed at the dealer is a $500 ripoff. VW even uses a special ‘security torx screw’ to discourage backyard mechanics from cleaning or changing them out themselves. No wonder VW are being dragged kicking and screaming into the world of the electric car, maintenance of their ICE machines is where the real money is. Nowadays VW won’t even put your car on the hoist unless they’re gonna make at least $1000

  8. says:

    Blah blah 2020 blah future blah.
    Next!

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