Volkswagen To Speed Up EV Development With Big Investments
Volkswagen intends to invest in electrification to the tune of about €6 billion ($7.1 billion) in five years to introduce its all-new MEB platform and I.D. lineup.
Overall fiscal conditions of the company is expected to improve through higher profit margins (increasing between 4 to 5 percent) and cost cutting measures. The investment money is required for the company’s expansion of SUVs, more hybrids and of course – plug-in vehicles.
The I.D. hatchback will be introduced in Europe in 2019 and is promised to be price-competitive with the Golf.
In the U.S., Volkswagen prefers to start with the I.D. Crozz, and then later at some point in the future with I.D. Buzz.
By 2025, Volkswagen Group plans to place more than 30 all-electric models on roads. Sales of such cars are to reach 2-3 million annually in 2025, which will be 20-25% of total sales. Target for the I.D. in 2020 is 100,000.
To be more financially fit, Volkswagen will drop a lot of dedicated platforms and will focus on two main diverse platforms – MQB (ICE and plug-in hybrids) and MEB (all-electric).
Battery prices are expected to decline below €100/kWh on the pack level by 2020.
Source: Automotive News