Volkswagen Targets Sales Of 2-3 Million EVs Annually By 2025, 30 All-Electric Offerings (Update)

JUN 16 2016 BY ERIC LOVEDAY 42

Shooting for 2-3 million "E-Car" sales in 2015, some ~1 million reported to be all-electrics

Shooting for 2-3 million EV sales in 2025 – serious investments start now!

2016 Volkswagen e-Golf

2016 Volkswagen e-Golf

Volkswagen CEO Matthias Müller has revealed that the automotive group will undergo a “sweeping restructuring,” according to the Wall Street Journal.

This restructuring, which stems from the Dieselgate Scandal, will include an intense focus on plug-in electric cars.

Müller says it’s now time for Volkswagen to “catch up with the best.”  Müller’s statements come from “excerpts from his comments” at a meeting of top VW Group execs last month acquired by the WSJ.

VW also made some specific more longer-term notes on the group’s new focus on all-electric technology in a group report “Volkswagen TOGETHER-Strategy 2025” (PDF here):

“Special emphasis will be place on e-mobility. The group is planning a broad-based initiative in this area: it intends to launch more than 30 purely battery-powered electric vehicles over the next ten years”

Update: Overall, the plan is to achieve annual sales of 2-3 million “e-cars” by 2025 (see above slide from presentation), which is equal to about 20-25% of sales.

“Volkswagen has always enriched the lives of millions of people all over the world with its brands and products. Our aspiration is to continue that success story and play a leading role in shaping auto-mobility for future generations, too. This will require us – following the serious setback as a result of the diesel issue – to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity,” explained CEO Matthias Müller during the presentation of the new strategic direction in Wolfsburg.

Volkswagen has expanded/clarified their 2025 plans, and “e-cars” is noted to be specifically all-electric vehicles:

“With regard to vehicles, and drivetrains, special emphasis will be place on e-mobility. The Group is planning a broad-based initiative in this area: it intends to launch more than 30 purely battery-powered electric vehicles (BEVs) over the next ten years. The Company estimates that such vehicles could then account for around a quarter of the global passenger car market. The Volkswagen Group forecasts that its own BEV sales will be between two and three million units in 2025, equivalent to some 20 to 25 percent of the total unit sales expected at that time.”


Porsche Mission E

Porsche Mission E

Part of the plan includes more component sharing among Volkswagen group brands (Volkswagen, Skoda, Seat, Audi, Porsche and Bentley). This could make it easier and more cost-effective to get multiple plug-in electric cars to market at the same time.

Up until now, Volkswagen Group has never really been a strong player in the plug-in space (especially all-electrics/BEVs), despite offering more plug-in options that any other automotive group.

However, this report notes that is all about to change, with VW almost charting a “do-or-die” leadership position in the space, as the automaker says: 

“…projected investments in future technologies (will be ) in the double-digit billion range

We look forward to the results!

Source: VW TOGETHER-Strategy 2025 (PDFWall Street Journal, BBCHat tip to Viktor!

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42 Comments on "Volkswagen Targets Sales Of 2-3 Million EVs Annually By 2025, 30 All-Electric Offerings (Update)"

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Presentation says 3 million e-cars per year and 20-25% share of production. This is bigger than article above states. A BBC article today uses the presentation numbers.
Elon will be happy;-)

Hey Stephen,

I think we should probably re-break down the title, as it is a bit confusing with 2 reports…and the lead really should focus on the 2-3 million e-cars. (will also add in the PDF link tftf)

The issue is the earlier Müller/WSJ statement of 1 million electrics (inferred to be of the all-electric variety given the context) and the 20 plug-ins/2020 targets, verses the 20%-25%/2-3 million “e-Cars” referenced in the PDF…which obviously ended up being the bigger story as data came out.

/sorry for the initial confusion on this one

” Elon will be happy;-)”

I doubt his investors will be happy. More competition means lower margins.

Maybe, but so what? I feel no more or less for Tesla speculators than any other speculators. Financial speculation is 99% bullshit anyway!

The point is to change the world, not to further enrich those who are already rich enough to put their “excess resources” into bets with other players that benefit nobody. Remember that buying and selling is a zero-sum game that doesn’t create any value, not help finance a company!

You do realize that these “speculators” are the very reason why Tesla still exist?

I must disagree with your sentiment that buying and selling doesn’t benefit anyone. I made money on Tesla and other stocks speculating, and it has benefitted many people. The money I made was spent on food, clothes, and other items for me and my family. Those things were made by workers who got paid as a result of my spending, as a result of my profitable, speculative trading. Economic activity benefits many people, not just the trader who makes money on the trade.

Actually the money was just redistributed. Nothing of value was created. Only manufacturing creates real wealth. By wealth I mean something new that has value. Don’t confuse ‘making money’ with contributing anything of value to civilization.

Nice! Best comment I read in a week.

Not when Tesla is so far ahead.

Tesla is 5 years ahead of most, and the cost of batteries are spmething they have in the bag with the Gigafactory !

Right. Tesla has a Gigafactory. VW does not.

We’ll know that VW is actually serious about building long-range PEVs (Plug-in EVs) in large numbers if and when they build their own equivalent of a Gigafactory. Actually, VW will need the equivalent output of several Gigafactories if the company is to continue its volume of production once they shift to PEVs.

And until VW invests in such large-scale battery factories, we’ll know they are not serious.

VW doesn’t need a Gigafactory. If they commit battery vendors will build factories on spec. Tesla was too unproven a few years ago to have that kind of juice with suppliers.

Tesla’s advantages are brand and commitment to their vision. They doesn’t hedge their bets with fuel cells or PHEVs and they don’t cripple their EVs to protect high margin, high performance gascars. Tiny MSFT’s laser-focus on “a computer on every desk and one in every home” carried them when larger, more powerful companies faltered. The same has been true of Tesla so far. This is a big change of focus for VW, time will tell how committed they really are.

No they don’t. They have 14% of a Gigafactory. In fact, not even that since Panasonic owns part of it. Besides, they still haven’t proved that the Gigafactory can reach the cost savings they claim, it’s still just a dream.

Right. Nothing like the ecstatic VW investors who have watched VW stock tank emphatically since the first wiff of ‘The Big Stink’ wafted on the breeze.
Down %50.
Are people buying this bilge-water? Apparently investors aren’t, down a well deserved 3.50% today.
Infamous Tesla shorts that continue to frequent this site would have been well advised to short VW instead.
F VW.

“Gigafactory”

Hate to repeat it for you, but there is no Gigafactory yet. Tesla and Panasonic announced just 10% of the projected funds so far (500 million out of 5 billion).

Call it a Gigafactory once they invested the remaining 4.5 billion USD.

As of 2 1/2 months ago the Gigafactory was 14% complete with 5.8 million sq. ft. completed. Still growing.

Can’t find info on current size.

Correction. This info is 3 1/2 months old. And 14% at 1.9 million sq. ft.

Tftf is still clinging to the hope that Tesla needs the entire Gigafactory for the Model 3 launch. That was never the case.

The investment in the Gigafactory this far already rivals the first phase of the Panasonic Suminoe plant, which is a gigafactory in its own right – about 3.5 GWh. It is almost double the LG plant in Michigan.

The pilot phase alone is now apparently 3/5’s the size of the original Gigafactory capacity when it is operational this winter. And it will dwarf all of LG Chem, Samsung SDI, and SK Innovations output of automotive cells combined.

Tftf hopes that won’t come to pass… the next few quarters is going to be very interesting.

That’s a first. I never even mentioned the word. Perhaps you meant that as a response to someone else. Because you really have no response to what I said, apparently.

Poor tftf. Suffering so much from his TES (Tesla Envy Syndrome).

Fortunately, help is available. All you need to do is sell off your TSLA short stock position. Instant relief is guaranteed!

Perhaps you could join with other recovering TSLA shorters to form a support group, if you find yourself unable to sleep because you miss all the pointless posting of FUD to InsideEVs.

It is mainly the investors in ice car companies that should be worry. The car builders former solidarity against the ev is clearly starting to fall apart. Many now start to think otherwise including VW.

Bring it on I can’t wait to see the selection and I’m holding off my electric car purchase until Volkswagen unveils their next electronic offering I need something a little bigger than a golf

electric-car-insider.com

Outstanding link tftf, thanks for posting.

You know, there are a lot of companies making similar claims about having 20-ish plug-in vehicles on sale by 2020. That’s only 4 years from now. And if you consider that there are only 20-ish plug-in models for sale in the USA right now to begin with.. That suggests that there will be an exponential growth of models available to choose from in 4 years time. That should translate to exponential growth in plug-in sales.

One might say that this will hurt the existing models because it is a niche market and the pie is being split too many ways. But the truth is, having 60 or 70 models of plug-in car on sale will create much more customer awareness and education of these types of vehicles, and will likely increase the size of the pie.

Absolutely spot-on !

“It’s not complicated. More is better”.
LOL

I hate to sound like a broken record but this is everything to do with the EU emissions standard that will come into force 2021. If VW are not selling 20-30% pluggin s by then they will be paying a whole lot of tax.

You left out perhaps the most interesting part: 30 different “pure” BEVs (i.e., not hybrids) by 2025.

And the fact that they said 2-3 million by 2025.

I guess it got mixed up with their 2020 plan of building one million “electrified” cars, or cars with plugs for us dumblings.

Hmmm, I wouldn’t be so sure of that. What VW is calling “electrified” could mean nothing but a mild hybrid, or perhaps even less; it may mean nothing more than a micro-hybrid (a gasmobile with an oversized starter battery and a beefed-up alternator which acts as a starter motor and generator).

Doesn’t necessarily mean it has a plug.

Read (at least) the PDF before you post assumptions.

See the slide posted in the article, ALL-ELECTRIC ?

That is if VW is still here in 2025. Though you probably still will be, an ill guest stays longest.

Talk is cheap, and so are VW diesels.

Talk is cheep. Exactly!

How many countless articles have been posted on VW stating that they will be the leader BEV / EVs over the past several years?

The CrossBlue PHEV SUV was also going to be launched by 2015!

This is just another diversion tactic.

RAV4 EV
5kw PV

By then, Tesla will sell 2-3 million car per year. The future of ev is bright though

Cadillac also stuck that stick in the sand. Johan said that ‘all’ Cadillacs will have a plug-in variant to satisfy the customer checkboxes.

However, their actions speak otherwise. Both new models (XT5 and CT6) did not have a plug-in offering on day one.

Excellent, they get it which is more than can be said of some other manufacturers…

There have been an endless stream of articles about how VW is supposedly gonna turn it around and go “all in” for making EVs. Well, I hope they do.

But actions speak louder than words. So far, VW’s efforts in the EV field are speaking pretty softly. They should talk a lot less, and do a lot more.

I guess you haven’t checked the EV sales charts in Norway lately.

The title of the article could be rephrased another, more accurate, way:
“Nine years from now VW will still be producing 75-80% ICE vehicles.”

Not so impressive that way.

I feel VW should give the option of a brand new e Golf in exchange for a Dieselgate vehicle. This would get the VW EV’s rolling out.

Anyone else agree with me?

I can second the thought.