Volkswagen North America To Focus On Electric Cars In Revitalization Push

NOV 25 2016 BY STEVEN LOVEDAY 18

2017 Volkswagen e-Golf

2017 Volkswagen e-Golf

Volkswagen AG has announced that it will evolve from a “niche supplier” to a substantial and mainstream automaker in North America. The company’s goals include expansion in the SUV and light truck market, along with additional sedans, and by 2021, electric vehicles. The highly ambitious plan calls for an end-goal of the sale of over 3 million electric vehicles per year globally. VW CEO, Herbert Diess said:

Volkswagen I.D.

Volkswagen I.D.

“We will be significantly stepping up our activities in the U.S.A. Our goals are high and our strategy is very ambitious … Over the next few years, Volkswagen will change radically. Very few things will stay as they are. The electric car will become the strategic core of the VW brand.”

Currently, VW only has one U.S. factory, located in Chattanooga, Tennessee. The Jetta sedan, Golf hatchback, and the Beetle are assembled in Mexico.

Volkswagen faces multi-millions in fines due to the diesel emissions scandal. It is one of the least profitable automakers today. Even before the scandal, VW faced a myriad of struggles, simply attributed to overspending and underachieving. Productivity has remained at a whopping 30 percent below competitors, and per vehicle costs have been as high as 60 percent more than other automakers.

With the new initiatives in place, the company is forecasting the tripling of profitability to 6 percent, and selling one million electric vehicles per year in North America. However, these goals are set for 2025, which is a long way off. In order to increase fund availability to be able to afford battery and self-driving technology development, the company has to make immediate and monumental strides. It has started its revitalization efforts with a major agreement that will cut 30,000 jobs globally and cut billions in spending. The company’s first step is to eliminate underperforming conventional models.

Source: Autonews

Categories: Volkswagen

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18 Comments on "Volkswagen North America To Focus On Electric Cars In Revitalization Push"

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I popped the cork on some champagne, but it was flat, the cork fell on the floor with a dull thud, just like VW pronouncements.

Perfect

Well said, Lets see what they really do vs the German Sales hype and politician style promises.

Less talk and more action.

I think this was the only direction the company could take to recover from Diesel-gate. I believe it to be genuine and look forward to what comes next.

It may be too little too late and I don’t believe them.

I wish VW would stop talking and start doing.

VW in the light truck market in North America? I recall the rabbit pick up and Diesel Variant! E-Golf EV light truck anybody? I think even Tesla beats VW to market in this category.

Big surprise. VW is going to make mass market EVs 5 years from now. As I recall, this is the exact same announcement they were making 5 years ago. I’ll believe it when I see it. Didn’t they just get caught with another emissions cheating software on Audi transmissions? By the time they get done paying all the lawsuits the only thing that’s going to be left are VW keychains.
Stop cheating on emission standards, stop the propaganda, and start building mass market EVs.

Don’t believe it , because you will never see it.

Definitely don’t believe them.

But, I don’t exactly recall them saying they’d have a mass market EV in 5 years back in 2011, to be fair.

They actually did. Don’t have a link off hand but I’ve posted it over the years.

Back in 2011 with he release of the Volt and Leaf, VW made a grand announcement that they would be selling hundreds of thousands by 2017 or so and control a large percent of the EV market.

From March 2010: ” ‘The goal is to become the market leader in E-mobility by the year 2018,’ said Martin Winterkorn. His goal is to make electric vehicle’s three percent of VW sales by 2018.”

Thanks, philip

> The highly ambitious plan calls for an end-goal of the sale of over 3 million electric vehicles per year globally.

If that’s an end goal is hardly ambitious. All cars will be electric, so that would be their overall sales goal for cars, and a 70% reduction compared to today (in a still growing global market).

But actually it isn’t an end goal. It’s the goal for VW Group, not VW, for 2025 (one million of which should be from VW).

They want to be global leader with electric cars sales of one million in the year 2025 and a distant final goal of 3 million…

Tesla wants to do one million EVs in 2020. They miss timelines regularly, but by five years?

VW is day dreaming…

I believe the bigger news was VW was going to expand their offerings in SUV’s and enter the light {pickup} truck market. Oh yea, and someday we’ll get stronger in EV’s.