Volkswagen To Build Future EVs In North America

JUL 31 2016 BY MARK KANE 22

Volkswagen Passat GTE

Volkswagen Passat GTE

By 2020 Volkswagen intends to begin production of electric cars in North America.

Two of the options mentioned would be a facility not too far from Nissan’s Smyrna, Tennessee LEAF factory… in Chattanooga, Tennessee. Another option is for VW is a sprawling production facility found today in Mexico.

No specific details were revealed about what particular product Volkswagen had in mind to produce, but given North Americans vehicle buying choices, it likely be a plug-in utility or mid-size vehicle.

Volkswagen will spent nearly $15 billion as part of a recent Dieselgate settlement, with $2 billion of that falling on the promotion of use of zero emissions vehicles in the U.S.

Launching local vehicle production in North America would be significant advancement to VW’s currently tarnished image.

Hinrich Woebcken, the CEO of Volkswagen Group of America, said:

“We believe that this country, especially in urban mobility, will have a very strong shift from petrol engines into hybridization and electric cars. We are heavily investing in this one — including production in this North American region.”

source: MarketWatch

Categories: Volkswagen

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22 Comments on "Volkswagen To Build Future EVs In North America"

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This is clearly part of the ‘agreement’ with the US over diesel-gate. The fines could have been billions more, but instead additional $2 billion were allowed towards production of emissions free vehicle production in the U.S. to compensate for years of illegal dirty diesels still polluting the air in the US.

Which is why it can’t be Mexico.

VW and Audi have canceled most of their marketing budgets post-diesel expose. It was just reinforcing a negative stereotype

Since then, they have been using free publicity about what they intend to begin with electric drivetrains. You can’t take it seriously until they actually commit to doing something that makes a difference

I can’t and won’t take anything seriously until it happens when it comes to the VW group. They stated several times over the past years that they’re going to be “the world leader in EVs”. Hasn’t happened. Not even close. Now where are they?

This is _very_ old news. VW announced they would be building a PHEV 7-deat SUV in Tennessee 2 years ago… Not related to Dieselgate.

In fact, it was supposed to be launched in 2016, which ain’t gonna happen. VW is late.

A lot of talk , posturing and press releases from VW. Let’s see some products rolling off the line.

Say it isn’t so

Another tesla killer that just a few years away!

Every thing VW talks is for 2020, but what about 2017, 2018. They can cut the price of eGolf, instead they just phased out their only Jetta Hybrid.

Soon 2020 will come, lets see.

You know FiatChrysler is leaving the US, bound to be some shop space opening up.

No they are not. They are switching the car production to truck production.

Another Euro point of view
Mixed feelings about VW as right now it is hard to report factual progress regarding EV’s. One should however note that with so many brands their position in EV world is larger than it seems (larger than BMW for example (VW + Audi +Porsche)). VW group is still nr 1 car maker worlwide (5.1M cars sold in H1 2016, in front of Toyota’s 4.9M) and still reporting huge profits despite provisions taken for diesel gate (EUR 7.0 billions for H1 2016 operating profit, EUR 5.3 billions after provisions taken for diesel gate during that period. It seems diesel gate will merely be a little bump in that group history according to those figures so in case it appears they are really serious about EV’s it will make a big difference in the EV world. Anyway it seems year 2019 will be very interesting to watch as it seems there is a general understanding among car makers that this will be the year where EV components will be mature enough to actually sell EV’s in quantities deemed sufficient to start making profits. I follow EV news now from time to time but am under the opinion that nothing significant will take… Read more »

How about the Model 3 in 2018? If Musk can stay anywhere near on-schedule it should provide a huge leap in EVs on the road.

Another Euro point of view

OK, I can try to be optimistic but it is now about 7 years I follow EV news and X+2 seems more or less about the correct time approximation (in years) for anything to do with EV’s except maybe for GM but they usually have so small sales figures targets in respect of (PH)EV’s that even if they are on time launching an EV it doesn’t really make a difference. It seems with GM that it is seemingly a matter of making a statement “we can do it but won’t really sell them”. Hope I am wrong.

I think you’re right about GM, but mistake how VW Group seems to be waiting until EVs are more profitable than engines. Porsche / Audi could EASILY make a profitable EV. Just not as profitable as the engine equipped cars they sell, and service. I think “less profitable” is how you should look at it.

VWG talks a lot about “making money”, and a lot of their former customers now see at whose expense those profits come. Customers who get what they want aren’t always the most profitable, but if you give them what they want, they might stay with you.

The third generation Porsche’s and Piech’s probably still think this is about the EPA. What a waist of automotive talent.

Lots of words that say little. The Big Stink a little bump in the road? What garbage.

Another Euro point of view

“Lots of words that say little”

Trying my best, English being only my third language.
“The Big Stink a little bump in the road? What garbage”

As far as numbers are concerned, you are wrong. As far as a setting a trend for the future of car making, you are right.

I agree it’s likely that significant revenue won’t happen before 2019 (I wish Tesla luck with the accelerated Model 3 timetable, but it’s extremely unlikely to work out), and significant profits will take a couple of years after that (both to amortize the designs & production facilities, and because charging networks will need to be built out, and carmakers will have to support them to some extent initially).

That said, strongly disagree that nothing significant will happen before then. The cars that are intro’d and sold in th next 2-3 years, even in tiny numbers, will determine who will be the big players afterwards.

Some of the big gorillas may think they can just swoop in anytime, but it won’t play out that way. This is a new technology space, with its own issues (Tesla took several years moe than expected to sort out pure drivetrain issues, like motors, gearbox etc.)

Recall that it wasn’t the big cellphone vendors of 1995 that eventually became the big touchscreen-smartphone vendors…

Another Euro point of view

“The cars that are intro’d and sold in the next 2-3 years, even in tiny numbers, will determine who will be the big players afterwards”.

I mostly agree but probably less because of R&D issues than because of a lack of vision problem. Once right design decision is taken (dedicated EV platform, so not what VW as done so far) IMO EV technology is probably less challenging than ICE technology.

If VW wants to compete in urban mobility, shouldn’t they build the eUp! to meet Federal crash standards and sell it in the States? Even as a carsharing program, it would have moderate success in the desired urban market.

Well, VW is probably correct in thinking that very few eUps would sell in the USA. Tiny cars just don’t well here.

I guess the Fiat 500 is a bit of an exception.

Hey VW where is your 200 mile EV for $35k?

Musk gets free advertising by announcing ‘In 3 months We’ll be thinking about being close to an announcement of something. Tune in then for part Deux’.

This drives the other automakers nuts, then they say, if it works for him – do the same thing.

So we have all these meaningless announcements – FROM EVERY MANUFACTURER.

Plus VW thinks that being trendy will reduce the amount of future fines.

They announce electric cars all the time, except the ones they announce I can never buy, such as an all electric Phaeton.

Brings a new meaning to ‘Vaporwear’.