VW Group – 16 EV Production Sites, $24 Billion Battery Investment

MAR 13 2018 BY JEFF PEREZ 41

Volkswagen I.D. Vizzion

It’s all a part of the company’s ongoing “Roadmap E.”

Volkswagen is taking its green initiative to an entirely new level. At VW Group’s annual media conference in Berlin, Germany, CEO Matthias Muller rolled out even more details on the plan he calls “Roadmap E.” The ongoing initiative will see 16 sites around the world become home to battery-powered vehicle production before the end of 2022 – a significant jump from the mere three facilities where VW Group’s electric vehicles are currently being built.

Related – VW e-Golf Was #1 Selling BEV In Western Europe In January

“Things are really moving,” said Muller. “A change of course for the Volkswagen supertanker – full speed ahead to the future!” The 16 yet-to-be-named manufacturing sites will all be online by 2022, with the current three sites seeing a significant bump up to nine facilities in just two years.

Volkswagen I.D. BUZZ

Another aspect of VW’s “Roadmap E” plan will see partnerships with battery manufacturers in both China and Europe in the ongoing development of its electric I.D. range of vehicles, a contract that costs a whopping €20 billion ($24 billion) total. So far the company has yet to decide on a supplier for North America.

At the Geneva Motor Show, VW Group introduced three new electric concepts, including the Audi e-tron, the Porsche Mission E Cross, and the I.D. Vizzion – the latter being the latest addition to the growing I.D. range. Beginning in 2019, Muller promised that there will be a new electric vehicle “virtually every month. This is how we intend to offer the largest fleet of electric vehicles in the world, across all brands and regions, in just a few years.”

Porsche Mission E Cross Turismo

But don’t think the company has given up on conventional gas and diesel engines just yet. VW will be investing nearly €20 billion into its conventional vehicle portfolio in 2018, with a plan to invest more than €90 billion ($111 billion) into that same fund over the next five years. Even throughout the Dieselgate scandal, Muller believes that “diesel will see a renaissance in the not-too-distant future.”

Audi e-tron prototype

“We are making massive investments in the mobility of tomorrow, but without neglecting current technologies and vehicles that will continue to play an important role for decades to come,” said Müller.

Categories: Audi, Porsche, Volkswagen

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41 Comments on "VW Group – 16 EV Production Sites, $24 Billion Battery Investment"

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jelloslug

And zero cars.

ffbj

They must taken a wrong turn at Albuquerque.

Miggy

VW would not be doing this if it were not for Tesla.

John Doe

They have at least adjusted the pace due to Tesla. The rest is due to better batteries, and that a useful EV could be made.

VW made their first EV back in 1976, with lead acid batteries.. was a test car for 10 years. Testing motors and batteries.

In 1989 they released the first electric Golf available to the public, this time with lead-gel batteries in the floor of the trunk. 30 miles range. Then came an electric Jetta with sodium-sulfur batteries, and 74 miles range.
In 1993 they released the electric Golf 3. First VW with AC motor, lead-gel batteries, break regen, 55 miles range. Charge time was 2 hours to 100%.
…. and so on. Slowly learning, low production numbers. In 2007, they shower the first e-up prototype. A year later Tesla released their first EV.
The newer models like VW e-up in 2011 was the first with “volume” production that used lithium ion batteries.
Since then it’s been step by step. Later this year, they will release the first of their from the ground up designed EVs, an AUDI.

Foolcell

There at it. Still investing heavily in diesel and I bet you will be a waiting list for their EVs due to not producing enough. Don’t want to invest to much in EVs because half their workforce will end up unemployed. Wait for the German government bail out in five years.

Texas FFE

The first Electrify America investment cycle ends in June of 2019. During the first cycle Electrify America is supposed to have 2,800 charging stations of which 290 are supposed to be ultrafast (150+ kW) charging stations installed along major highways. By next June cars like my 2017 Ford Focus Electric should be able to drive almost anywhere in the country fast charging all the way.

The VW Auto Group will have a tremendous investment in this charging infrastructure. The Group needs to stop producing vaporware and start taking advantage of their investment by building real electric vehicles.

Mike

I guess my question is whether there are any of these stations in operation now, particularly outside of California? There has been lots of talk, but I am unaware of any action.

Texas FFE

Actually there is a June 22, 2017 press release indicating that the first eight Electrify America fast chargers were installed/upgraded in Virginia and Maryland. Although I don’t know what charging stations are actually Electrify America charging stations (if anyone knows please post a link), the press releases indicate that Electrify America is very busy selecting sites and writing contracts. Just like EVgo did with the CCS stations in Texas at the end of 2016, I would expect most of these Electrify America stations to appear almost simultaneously in the spring of 2019.

hpver

Unlikely. They have nothing installed yet that I’ve heard of. It’s all talk so far, a lot like VW itself.

Texas FFE

It’s not VW promises, it’s a penalty imposed on VW by the United States government. It’s going to happen in the time frame identified or the VW Auto Group can forget about selling cars in the US, ever. The plenalty includes the spending of $2 billion for charging infrastructure broken into four $500,000 thirty month cycles.

Give it time, the first cycle ends in June of 2019. It takes time to plan the spending of $500,000 broken out into 2,800 separate projects. I think there are way too many watch dogs on this project for VW to come up short this time.

Texas FFE

I got the number here wrong. It’s more like 4800 chargers installed at 940+ stations or locations.

Vexar

Blog your road trip. InsideEVs had better cover a FFE road trip.

Texas FFE

You mean like the 1,800 mile road trip from Texas and Colorado and back I did in in 2015 my 2013 FFE? There’s no trick in a road trip in an FFE. The trick is finding fast chargers along the way to make the trip practical.

ffbj

That’s a lovely trip. Very interesting terrain changes.

Someone out there

I am still waiting for the announcement of Gigafactory 3,4 and 5 that was supposed to be made last year.

G2

VW is building a Gigafactory!? Great!
/s

F150 Brian

No, he’s talking about Tesla.

VW is not alone in the vaporware kingdom.

Get Real

Vaporware kingdom?

Sounds like a place all the serial anti Tesla/EV trolls, shills, shorters and haters live.

Hey, I just described Seeking Liars.com!

przemo_li

So far Tesla never suggested parallel construction of multiple gigafactories.

2 will come after 1 is done or mostly done. But 3 wont be started till 2 is (mostly) done.
Same for 4/5/6.

Someone out there

Oh Elon most certainly suggested it. Also he claimed that he would announce the location for the next 3 factories at the end of 2017.

“Tesla and CEO Elon Musk have been talking for a few months about upcoming new Gigafactories with the new locations to be announced by the end of the year.”

“Last month, Tesla confirmed that their shareholder meeting that they were currently working on 3 more Gigafactory locations to produce both vehicles and battery packs.”

“Now, at the National Governors Association today, Musk confirmed that “2 or 3 more Tesla Gigafactories” are coming to the US “within the next few years.””

https://electrek.co/2017/07/15/elon-musk-tesla-gigafactory-us/

Pushmi-Pullyu

A mere delay does not make something “vaporware”. Only Tesla Hater cultists would try to promote that Big Lie about Tesla.

Contrariwise, Volkswagen’s frequent promises about putting EVs into production have almost all been vaporware; not merely for years, but for decades now!

Unlike Volkswagen, Tesla does actually put EVs it touts into production, sooner or later.

Ron M

While the rest of the world signed the Paris Accord. Trump made Scott Pruitt the head of the EPA. That’s like putting the Fox IN the chicken coop to guard the chickens.
Trump visiting California to try and stop requiring new emissions requirements to go into effect.

przemo_li

Californians apply enough pressure on their politicians, to safeguard that support for at least decade into future.

Trump could ask EPA to revoke California privileges in that regards… But of course that would not be illegal influence (EPA is independent)…

EPA could on it’s own revoke California privileges, but that would be met with countersuite, and EPA would not be able to find any arugments as to why California can’t have it’s own system in place.

California is making decisions based on facts. Old EPA was making decisions based on facts. EPA wanting to prevent California from making decisions based on facts, instead replacing it with fact less approach championed by current EPA… that would not fly in court.

Worse. Court could rule that EPA fails it’s responsibilities, thus California can not let EPA do it’s job, as then nobody would monitor and enforce this area of responsibility.

(⌐■_■) Trollnonymous

VW can SUCKIT!

hpver

If VW would stop blabbering and start doing even half of what they promise, I might believe them. Until then, they have zero credibility.

Bill Howland

I just LOVE the statement: “VW will virtually be releasing a new vehicle every month!”.

That’s what they’ve been doing for the past 5 years, that is, introducing a new EV ‘virtual’ concept every month that never gets built, other than in their mind’s eye.

Robb Stark

They have agreed to purchase €20B in batteries.

They don’t say over how many years and how many GWh per year.

If it is over 7 years that is a massive purchase. If over 20 years not so much.

scott

VW is so full of crap they should branch out into the fertilizer business.

Tesla and Nissan are dragging the other carmakers into the twenty first century kicking and screaming.

Roy_H

I really didn’t think VW Group had that much money to spend. $24B is huge GM spent about $3B total to design and set up production for Volt and Bolt. This is enough to set up several EV factories. And even more mind-blowing is that they intend to spend 5x on diesel!

David H

Yes, they have extremely deep pockets. Just for some perspective: Even after all the Diesel related penalties VWs last years net profit (!) was higher than Teslas revenue (!).

And the $24B are just for the batteries. This does not include car development or factory updates. Reuters [1] reports that in 4 years they will have spent about $85B on electric cars. So that is in the same region as they spend on Diesel.

“The group said its total investments in electric vehicles capacity and projects will amount to about 72 billion euros by 2022, confirming an earlier Reuters story.”

[1] reuters [dot] com/article/us-volkswagen-investment-electric/volkswagen-accelerates-push-into-electric-cars-with-40-billion-spending-plan-idUSKBN1DH1M8

John Doe

I think that most people don’t understand the massive changes the green shift is makeing. Germany is a manufacturing country, and the change they (not just the VW group) are making is all over the society.
Check and compared solar, wind, recycling, investments in new green product development, CO2 emission and so on, and compare to other countries.
Then they should read up on rules and regulations, and how they are making changes. Check infrastructure planning and investments, and then think of the impacts this will have. Some will have to be reeducated, some will just have to change job, some jobs will be made, some will not excist any longer, massive investments in infrastructure.
Cool times.

Will

Crap , vw is not even a leader in Germany. BMW is the leader. Plug in all thier models and thier revolutionary i products

nono538

I know what they are doing and honestly trust them, there will be there. Only hot topic is securing battery cells supply…for China, I bet they got a deal with CATL which I see the only one to be able to extend rapidly their GWh production capacity with Chinese government support.

TheWay

If they only invested that 100 billion into EVs instead of diesel, they probably could have easily taken top spots in the EV game. But alas, old habits die hard.

There are literally cities that plan on banning diesel within the next 10-20 years and someone goes “oh, quadrupling down on diesel makes sense!”

F150 Brian

A massive investment in EVs five years ago would have amounted to massive debt today with very little advantage.

The market, infrastructure and technology are ripe now and hence why you’ll see more action in the next couple years.

ICE profit is paying for EVs, even at Telsa (through credits) so they can’t just drop it – it needs a credible transition plan.

przemo_li

Massive investment 5 years ago, would mean WV would dominate luxury market alongside Tesla.

I ROTFL each time sobebody suggest EV == economobox (alternative phrase “but think about the economoboxes!” 😉 )

Tesla get’s huge grows in luxury segment. VW could do the same. They would rack up in market segment now.

At a loss? Pfff. Who cares? Double digit market gain in luxury segment just because? That’s wet dream of any investor. Which means VW investors would support such strategy.
BUT…

Tesla sells S&X at a profit… So you say VW wouldn’t be able to?

JPM

TLDR: VW to spend 3 times as much on Diesel as on EVs.

Martin T.

I wonder if the monkeys used in the USA, VW science experiment breathing in clean Diesel fumes while watching cartoons will now be used again ?
Now subject to electrocution by VW to prove electricity is safe ?
VW = a bit of a worry.
Lets hope they leave the scientific experimentation on VW marketing vapor ware personal or VW upper management. 🙂

przemo_li

This anouncement make little sense.

They will buy 20bln worth of batteries for EU + Asia, but not for NA?

They want to choose batteries supplier for EU/Asia separatly from NA?

No sense at all. Unless those blns are for factories instead of batteries, Panasonic+Tesla style. That would make more sense….

if only not that split for NA and EU/Asia. Batteries will be done from single chemistry. So supplier will have to be single.

Pushmi-Pullyu

“Volkswagen is taking its green initiative to an entirely new level.”

We have heard these vaporware promises before. VW is the king of vaporware.

As they say, Volkswagen: Put up or shut up.

* * * * *

“…Muller believes that ‘diesel will see a renaissance in the not-too-distant future’.”

Wut? He actually said that in 2018?

Looks like the housecleaning at Volkswagen, following Dieselgate, needs a much larger broom.