Volkswagen Will Invest Over $1 Billion To Convert Factory To EV Production Only

DEC 15 2017 BY MARK KANE 26

Volkswagen I.D. – Coming in 2020

Volkswagen has announced a €22.8 billion investment package (2018-2022) in the future viability of its plants throughout the world, including a €14 billion envisioned specifically for German plants.

Volkswagen I.D.

The main focus over the next five years is to be e-mobility and modularization.

Part of the investment is transformation of the Zwickau plant into a pure e-mobility facility, through an investment  of about €1 billion ($1.2 billion).

The production of Volkswagen Golf and Passat in Zwickau will now be relocated to Wolfsburg and Emden, while the facility will instead produce all-electric Volkswagen I.D. from 2020.

“In the first stage, Volkswagen will be concentrating the series production of its future electric vehicles based on the new modular electric drive kit (MEB) here. In 2020, the Volkswagen I.D., the first vehicle in the new generation of electric automobiles will be launched on the market.”

“With the MEB, Volkswagen has a technology consistently oriented towards the zero-emission mobility of the future. The MEB will allow Volkswagen to offer electric vehicles with operating ranges from 400 to 600 kilometers, rapid charging capabilities and major package benefits at the price of a comparable diesel car. In addition, the MEB will be the key tool for meeting demanding fleet targets first in Europe and China and later in the USA. All in all, the new modular electric drive kit will allow Volkswagen to offer vehicles ranging from the compact A segment to 7-seaters in the B segment. In technical terms, the new generation of Volkswagen electric vehicles will feature innovations previously only available on cars in the premium segment.”

We should also note VW is talking about some actual production figures now, and the anticipated production rate of the I.D. is roughly 100,000 annually in 2020, with a total of 1 million I.D.-family BEVs to be made by 2025.

Electrification has become an important topic of discussion for Volkswagen of late, but we still find that the overall goals doesn’t seem that big for the next 7 years (compared to even the most popular standalone models – like the Tesla Model 3 and Nissan LEAF), and the investment into conventional and hybrid cars is still substantially bigger:

“Volkswagen is investing €2.9 billion in Wolfsburg in order to pool production of the next-generation Golf at the plant, among other items. At Emden, the total investment with a view to concentrating production of the Passat family at the plant from the end of 2018 will be about €1.1 billion.”

Dr. Herbert Diess, CEO of the Volkswagen brand, emphasizes:

“The investment package which has now been adopted will give a decisive boost to the largest product and technology offensive in the history of the brand. It is our objective to position Volkswagen sustainably in the lead in the volume segments and to take up a leading position in e-mobility.”

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26 Comments on "Volkswagen Will Invest Over $1 Billion To Convert Factory To EV Production Only"

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(⌐■_■) Trollnonymous

VW…………meh

Good way to over come diesel gate, make LOTS of really good EVs at and affordable price.

Diesel gate was more than two years ago. Through nine total years forward of that point, Mark Kane lays out what we can expect.

VW posted Q3 2017 earnings of 5 billion. That’s quarterly, not annual, and over 7 years they’re announcing 5 billion in spend (1bn BEV MEB, 4bn Passat/Golf).

The Volkswagen Group reports sales up 9.4% in October to 398.100…
VW is number 1 in China which is making them lots of money…
FYI GM is not far behind…
General Motors advances faster than its archenemy but remains below at +11% to 382.723 units.

bestsellingcarsblog.com/2017/11/china-october-2017-geely-and-baojun-post-all-time-record-volumes/

The end result is that VW and GM will be making lots and lots of EVs for China’s mandate and that will allow them to help acheive economies of scale and know how quicker to use everywhere else…

Too bad all those sales are gassers; Can’t quite figure if VW is blowing a lot of PR smoke or really is transitioning to EVs. Hope it’s the latter.

So, I take it, you are saying…Hardley a proportionally Serious Investment Reversal from Diesel to EV?

I don’t think “two years” is important.

Sounds promising…

Hopefully VW will within next 3-5 years have an EV offering that can compete against Tesla… including VW EVs having access to a convenient & reliable Supercharging network.

3 to 5 years?
They will start making lots of EVs in China through a JV next year and worldwide in 2020 and a couple coming sooner worldwide through Porsche and Audi…

It ain’t ‘World Wide’ until Each And Every VW Dealer Actually is Sticking, Using, and Selling VW EV’s!

Same for other OEM’s selling their own EV’s at each and every dealer, and each dealer using them: GM, Ford, FCA, Toyota, etc!

I hope all these announcements VW make actually result in something in a few years.

In the UK at least nothing much seems to be happening. I don’t think I’ve seen a single e-Golf or e-Up. I’ve seen one Golf GTE. They advertise the Golf GTE on TV where they emphasize the ICE *facepalm*

Here in Norway there are loads of e-UP’s and e-Golf’s. The local VW dealer claims 60% of sales are EV’s.

That’s great news, but Norway is not typical when it comes to EV sales.

Obsiously Norway has leveled the playing field by taxing fossil fuel cars and exempting EVs from taxes.
This shows that VW can deliver EVs even today if the appropriate incentives are in place. Sweden will implement a similar scheme based on bonus/malus taxation.

Can we transplant those Dealer Mentalities to Canadian and US Dealerships?

Did they have some really nice renders of what the new factory will look like?

They do have some gorgeous factory renders that you will eventually get to see!

But, only after you see their “largest technology and product offensive” press releases, at least a dozen more times. These will still recycle and showcase the VW I.D. BEV, and the rest of the I.D. Family.

It’s just a few month to the Audi e-tron quattro production start the first production run, ment for sale to customers. And yes. . They Will show coming EVs again and again and again.. They’re trying to create a need for EVs in markets that focus on price and value for money – more then low environmental impact. Just like any ad, they will show it again and again, to beat the message into the head of potential customers, and change the mentality of the general population. Only a single digit number of the average population seek out EV news like you guys on this web site. The rest don’t really know that much, or care that much. That is why information must come often, to make sure some of them pick up some information in a society where there is information overload. That is also why a company like Tesla that excel in markering, and offer a wow factor is key to the grows of EVs. From now, and forward – EV growth will be high. Companies like VW and Audi will develop and produce 1 volume EV car model a year each. Skoda will come with at least… Read more »

jelloslug asked:

“Did they have some really nice renders of what the new factory will look like?”

LOL! Not only vaporware EVs, but vaporware factories too, hmmm?

But I’m sure any artist concepts for factories from VW will look far more like a real-world factory than those from Faraday Future, which look like virtual reality concepts for “Tron: Legacy”! 😀

YAWN

Yet another confirmation of my claim that even though governments aren’t taking much action, what little they do take has FAR greater impact than Tesla.

Don’t get me wrong, it’s fine to admire Tesla. Just don’t forget that if you want things to change, government can make it happen far more reliably.

Let the fun begin.

Well said, obvious, but well said regarding govt’s impact on the market. However, govts needed to be shown that BEVs were capable and engaging before they could be seen changing the regulatory/tax framework. Luckily GM was out front for the last 15 years taking the risks and pushing the envelope to make BEVs a reality…except it wasn’t GM- it was Tesla.
Give credit where the credit is due man.

Terawatt said:

“…even though governments aren’t taking much action, what little they do take has FAR greater impact than Tesla.”

Not saying you don’t have a point, but here’s a counter-argument:

Which had more impact on pushing the EV revolution forward; the 1999 CARB mandate, or the Tesla Roadster?

With the exception of the China market: Other than a bunch of compliance cars, what have all the government subsidies put together inspired auto makers to make?

The biggest incentives for EVs are in Norway. How much impact has that had on auto makers putting more models of EVs into production? Is there even one single model of EV that would not exist if Norway had zero EV incentives?

I hope they are now as devoted to EV’s as their wallet might suggest.

But yes, it’s obvious that they’re trying to buy some Good Will.

Between VW’s incessant vaporware claims and Dieselgate, it seems best to be skeptical of anything VW claims about moving toward making EVs. However, there are certain indications such as a report of a very large order for LG Chem batteries — larger than GM’s order for the Bolt EV — and a proposal from GM for a European battery consortium, which lead me to have some hope that there might be something real behind this.

Is it too soon to say… Go Volkswagen?