Volkswagen Group just completed a board meeting and announced that it's heading into a substantial revamp related to its electrification plans over the next five years. As previously mentioned, there will be a focus on software strategies at the forefront.
The global automotive group has seen some shifting within its ranks and an increased focus on planning for the future of late. Over the last several years, many media outlets pegged Volkswagen as the eventual first automaker to top Tesla in the EV game, but much has changed over a few years, and the company's top brass announced that it was time to get back to the drawing board.
VW has been up against major issues with its software, and specifically, attention has been on the software problems with the automaker's electric vehicles. Nonetheless, VW Group's ID line of EVs is growing and in relatively high demand. In fact, according to Electrek, the group hits its goal of delivering 500,000 ID EVs a year ahead of schedule, thanks to the Volkswagen ID.4 electric SUV. Some analysts still see VW Group surpassing Tesla in electric car sales as soon as 2024.
Gallery: US-made 2023 Volkswagen ID.4
Volkswagen Group's new CEO Oliver Blume replaced Herbert Diess last year, and he's been looking at the automaker's plans and working with execs to make more sense of them. While changes could lead to some delays early on, it's critical that VW goes about the transition correctly, which, according to Blume, requires a major revamp.
The new plan will accelerate the company's shift to electric cars with a brand-new software strategy. The board's pivot looks deeper into various VW Group EV production facilities to make final decisions about when they will transition to producing EVs, which new factory plans will continue to move forward, and what the job situation will look like as a result of upcoming changes.
Fortunately for the folks at VW’s facility in Hannover, Germany, the new agreement ensures that jobs are guaranteed until 2029. While there's not yet proof, this suggests that the factory will shift to producing EVs soon when current production plans come to an end.
There are still many questions, and aside from VW Group's vague announcement of a new five-year plan related to electrification and software, it hasn't yet many concrete answers. As VW accelerates its plans, it will continue to provide more information. The complete details from the recent advisory board meeting will be shared publicly at the automaker's yearly media conference on March 14, 2023.