VW’s First All-Electric Factory Will Produce 100,000 Cars A Year

SEP 12 2018 BY VANJA KLJAIC 87

The carmaker aims to produce only fully-electric cars at its Zwickau plant in Germany

With every legacy carmaker out there either scrambling to produce a viable electric vehicle model, current infrastructure will definitely need an overhaul.

For Volkswagen, a company heavily impacted by the dieselgate fiasco, producing eco-friendly EVs is definitely a way to go in order to clear up its reputation. Hence, the German carmaker plans to produce 100,000 at its first production facility to go electric: the Zwickau plant.

There, the first of several models from VW’s I.D. electric vehicle range are slated to be produced. Ultimately, the company aims to gear up to 100,000 electric vehicles by 2020, giving this production plant a daunting task of satisfying the ever-growing needs of the EV car world.

This information was revealed by Volkswagen E-mobility board member Thomas Ulbrich while doing an interview with Handelsblatt earlier last week. While confirming the plant’s location, Ulbrich also emphasized how the Zwickau plant was only the beginning of VW’s electric vehicle onslaught coming in the next few years.

“By mid-2020s, we will be converting the entire current plant in Zwickau, from 100 percent [gas] today to 100 percent electric cars. Zwickau is, if you like, only the tip of the iceberg. Our mission is nothing less than the transformation of the Group-wide production network towards e-mobility. We speak about 16 locations worldwide – and that’s within just three years, “

Every one of those locations is set to produce a number of electric vehicles based on VW’s I.D. concepts revealed in the last several years. All of these are based on the company’s new MEB platform for electric vehicles and include models ranging from small hatchbacks to large crossover and even tiny vans.

Volkswagen I.D. Vizzion
31 photos
Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Vizzion Volkswagen I.D. Crozz Volkswagen I.D. Crozz II Volkswagen I.D. Crozz II Volkswagen I.D. Crozz II Volkswagen I.D. Crozz II Refreshed VW I.D. Crozz VW I.D. BUZZ...which will need to lose those custom Hankook show wheels if it truly wants to live at the beach VW I.D. Buzz to become reality in 2022 Volkswagen I.D. Crozz Concept Volkswagen I.D. Crozz Inside the Volkswagen I.D. Buzz VW ID BUZZ: expected to market ~24 months after the ID hatchback (left in front)

Source: Electrek

Categories: Volkswagen

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87 Comments on "VW’s First All-Electric Factory Will Produce 100,000 Cars A Year"

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(⌐■_■) Trollnonymous

Here’s the problem with how the fed rebate works. This filthy dirty lying cheat device using companies products still qualify for the rebate.

The rules should be amended to DQ the filthy cheaters.

Don’t buy their products. You’re just rewarding bad behavior!.

https://www.telegraph.co.uk/business/2018/03/29/london-court-set-give-go-ahead-dieselgate-lawsuit-60000-volkswagen/

jim stack

I agree the Incentive should change. No help for any company that has only made 1,000 a month or les. They are all compliance makers, very poor.
Give the credits to the best company and that is TESLA !

Andy

Why not just nationalist Tesla instead? That way you can just funnel government funds directly into them if only Tesla should get them…

Brian

This isn’t Russia

Windbourne

Yeah. Tesla under Trump. Thats the way to help EVs.
ROFL.

Alex

Incentives are in place for the first 200k cars unchanged. If a maker build less cars, receive less incentives – it’s self balanced.

Get Real

BS

Get Real

The best thing to have done would have been after the first company reached their 200,000 limit to then put the rest of all the credits into a an open pool that any company that built and sold an EV would qualify for.

That would have incentivized all the companies equally to not be laggards and try and slow walk the transition.

Dan F.

Or to have just done that from the beginning or have it just run to a date certain for everybody and then a phase out. The current system will not be great for the leaders.

Prsnep

The only problem I have with this argument is that it should have been made when it was announced. People only started making any fuss about if after learning that Tesla was going to be the first to lose it.

I think the proper thing to do would have been to give rebates to the first, say, 1 million “green” vehicles. It doesn’t matter who took most advantage of it. But it wasn’t done that way. People should have made a fuss before learning that their favourite baby would be first to have exhausted the quota.

Andy

An overall limit isn’t the best option either. Rebates and incentives are about making EV’s more affordable compared to their ICE equivalents. To do that they need to be fairly flexible and based on the overall market price of EV’s, reducing as actual prices reduce rather than model based.

Either treat all EV’s the same – doesn’t matter who or what is being made – or start looking into individual market segments (e.g. Small SUV, mid sized car $30k, light truck etc.) so you can push the money where it’s most needed while not subsidising specific classes/parts of the market that don’t need subsidising. The latter would potentially cause issues for Tesla if the argument that they are already on par economically with their ICE equivalents is correct.

The current US rebate regime was probably designed to stop one company taking a large chunk of the assigned rebate money, allowing the money to be spread around more, reducing the economic advantage of just one manufacturer. That’s not necessarily a bad thing either, although the limits may be debatable.

Alex

I agree with your solution.
I understand the way it was implemented but penalize a bit first adopters also will distort the market and your (let me call it mine too as I mentioned something similar before) solution is better at promoting EV adoption speed.
$7500 discount in a sub $50k car it’s huge. If I take any car being sold now around me for that price and discount $7500, with small exceptions, that car would become the obvious good sense choice.

Viking79

No, people have been complaining from the beginning that it rewards late comers.

Alex

I don’t know if it was enough or not, but they were already punished for their bad behavior. It would be silly if they short punished them right when they were judged, to add later on further penalizations.

Companies are in the game for the money, if they think they’ll get along by cheating, they’ll do it.

Lawrence

Looks like a Model 3.

100,000 within the next 2 years? Sounds like another one of those VW claims that keep getting kicked down the road.

Andy

I thought that too, but then again the Model 3 looks like a Beetle from the front so – looks like a sedan Beetle.

antrik

Who would have thought the original Volkswagen had an ahead-of-it’s-time aerodynamic design… 😉

Actually makes sense though, considering that the Beetle, most other Porsche designs, and the Teslas all have in common the lack of a large combustion engine in the front…

I see other design similarities as well, though.

Andy

I was thinking more of the new Beetle. 😉

Specifically the bonnet/hood shape and light shape/location.

James
I believe Volkswagen is claiming a goal of 100,000 EVs produced from that single factory in one year. You are quoting cumulative Tesla sales. Tesla will hit 100,000 total units sold in 2018 this quarter. Tesla indeed sets tbe bar. A mega corporation like Volkswagen or GM can outproduce all of Tesla’s results using only one or two of it’s production lines in only one of their many factories. A staggering thought, but so true. This highlights just how anemic and unsubstantial all EV efforts to market have been for all ICE OEMs. Literally a grain of sand in a bucket. It’s like a big bully on the schoolyard showing off how tough he is by letting the little pipsqueak kid get in a couple of first punches while he tightens his belly. Holding the weakling at arms length saying, “when I punch you, punk, it’s LIGHTS OUT!” Volkswagen, paying their Dieselgate penance, could undercut Tesla sales with lower MSRPs, greater value and massive production numbers…If they desire to, Will they? Not likely. The prospect that makes auto giants like Volkswagen and Ford lose sleep is that if they do mass produce BEVs in the 100,000s people will seek out… Read more »
Pushmi-Pullyu

All of Tesla’s cars currently come from one single factory, too: The Fremont Assembly Plant.

But the article has a pretty serious error; it claims Volkswagen “aims to gear up to 100,000 electric vehicles by 2020”, while the actual quote from VW says “by mid-2020s”.

Once again we see even those legacy auto makers most advanced in making EVs, lagging 5-7 years behind Tesla.

John Doe

Companies like the VW Group are HUGE.
They have over 60 factories, and produce over 300 models.

To produce 100K cars is nothing, for a company that currently produce over 100 000 cars every 4 days!

By 2030 they will have electrified all of those 300 models.

I think it looks like VW Arteoncomment image

amta

I problem will be …….Lac of Batteries

antrik

Huh? I don’t see much similarity, beyond both being sedans painted in red and carrying a VW logo…

antrik

VW has been claiming since 2016 that they will introduce mass-market EVs in 2020… Don’t see any “kicking down” thus far.

REXisKing

Tesla sets the pace.
Otherwise, nothing happens.

Funny, how none of the news on insideEV’s is ever covered on CNBC.

Andy

One is a national news organisation catering to a large, diverse market, the other is a specialty news site catering to a relatively small group of people interested in a particular subject. It’s not really funny at all, any more so than CNBC not covering this years wheat harvest yields* or advances in drilling techniques.

*I get a magazine aimed at farmers sent to my door every month addressed to a previous home owner that covers just this…

ffbj

When they start righting hit pieces on farm equipment then I would fully agree.
The media in general is anti-Tesla as most of it is owned by conservative owners, and others who see revenue stream from Tesla, except from click-bait in hit pieces. Tesla, unitlike, Ford, GM, all the majors car manufacturers advertise on their channels so their not inclined to view Tesla with favorable.
They regularly host shorts that claim Tesla is worthless.
Recent statistical analysis has show that all of this and more is true.

Andy

Do you have a link to this statistical analysis?

And TBH most of the “negative” news I’ve seen recently is usually about Musk and whatever stupid thing he’s done recently (calling people pedos, smoking weed on video etc etc). Tesla supporters should grow thicker skins – other industries get the “negative” reporting much worse.

Pushmi-Pullyu

If you doubt CNBC has a heavy anti-Tesla bias, just Google {site:cnbc.com tesla} and look at the headlines for yourself.

This isn’t mere opinion, it’s easily verifiable fact.

Andy

The issue here is what you consider a hit piece. All I see is actual verifiable news, and commentaries. If they’re hit pieces then Inside EVs and Evanmax articles on here are the inverse of them. Reporting negative news isn’t a hit piece in itself, and in fact the Evanmax articles would have to be considered hit pieces on established automakers.

Brian

Fossil car companies buy a lot of advertising from the media. Tesla buys none.

Pushmi-Pullyu

“It’s not really funny at all, any more so than CNBC not covering this years wheat harvest yields* or advances in drilling techniques.”

You’ve completely missed the point. CNBC runs Tesla-related news with some frequency… almost all of it negative. It is astonishing just how very biased CNBC is in its coverage of Tesla. At times it steps over the line from merely one-sided to what I would call outright FÜD.

I haven’t seen any similar bias in coverage at CBS or CNN. I have to wonder just who or what is behind the extreme bias against Tesla at CNBC. 🙁

Andy

Clicks.

Most news is negative news, That’s also why the “and finally” reports are popular in televised news. As mentioned, Tesla get away lightly compared to some industries, even when Musk seems to revel in controversy.

amta

CNBC is all Propaganda, BS , & Fake News..

Dan F.

Ok, calm your orange head.

PHEVfan

100,000 electric vehicles by 2020 is a little late to the game. Tesla cleared that last year with one plant, and GM and Nissan are over half that already. Granted, they are still ahead of some other laggards (Toyota, Ford, etc.) but they really need to step it up.

YVES LAURIN

but if they really want it, they have the money to ramp it up

amta

Maybe if they build cars with., “Batteries Not Included” ……..BYOB_attteries …….rotf lmao

Pushmi-Pullyu

But they don’t have the battery cell supply, and VW has already admitted publicly that’s a serious issue. VW is going to have to invest in building battery cell factories whose output they control, just like BYD and Tesla did. In fact, all the major auto makers are going to have to do so… if they want to remain major auto makers, as the EV revolution progresses. Minor auto makers may be able to rely on independent suppliers. But if they’re not aiming to hit 100,000 EVs per year until the mid-2020s, then VW should have plenty of time to build those battery factories.

Regarding battery supply, InsideEVs has quoted VW head of group strategy, Thomas Sedran, as saying “The capacity is not there. Nobody has the capacity.”

https://insideevs.com/lithium-ion-battery-shortage-looming/

Andy

Do most auto manufacturers own metal foundries? Do most auto manufacturers make their own wire? Do most auto manufacturers make their own electronic components, or door handles, or windscreens, or engine components for that matter?

The answer is no. They contract those out to other companies who specialise in those products. In fact outside of the pressing of the sheet steel/aluminium most parts are made by other companies and brought in for final assembly. The issue is not the fact they aren’t making their own cells, but the fact the contracts they put in place with the manufacturers of cells have a lead time on them before the manufacturer can actually provide a product (like any other piece of a vehicle). The factory needs to be built either way, and that’s the issue.

Tesla have contracted Panasonic to build their cells anyway, the only difference being they have provided them with a building to do so.

eject

They will produce a lot more than 100k by 2020. The article fails to point out that this is just about Zwickau which also isn’t their only plant that currently is converted to electric but the first one that will be 100% electric. As the VW guy said, it is just the tip of the iceberg. Afterall in 2025 they plan to have reached 3 million fully electric cars or 25% of their total output.

David H

Plus, Zwickau in the past produced 250k cars a year [1]. So the capacity to increase output is there. So in the beginning the plant will also still produce gasoline cars that get replaced more and more with EVs, starting with 100k in 2020 (which should mean that it’ll be the Neo that comes in 01/2020 – the pictured Crozz is coming a year later, I think).

[1] https://www.volkswagen-sachsen.de/de/unternehmen/zahlen-und-fakten.html

R.S

One out of 16 plants that will produce electric cars, will produce 100k a year. That doesn’t sound bad to me.

Probably more than 1 million EVs per year in all of those factories.

Mark.ca

“This time is different”…my favorite quote from the stock market.
Here’s for hoping!

Get Real

It’s the “Tesla Effect” as Tesla’s master plan is working to compel a transition to sustainable transportation.

Andy

Or a technology effect, where tech is reaching the point of economic practicality. Some companies like Tesla lead the charge and are on the bleeding edge, while larger companies follow a little way behind as costs continue to decrease and things become practical for their market.

Probably a mix of both in reality.

Mark.ca

“Probably a mix of both in reality.”
+1
But don’t forget that Tesla’s push is in part responsible for the tech reaching economic practicality.

Pushmi-Pullyu

If it wasn’t for Tesla, the EV market would be 5-7 years behind where it is.

Andy

Perhaps, but there would still be a market.

Dan F.

Tesla remains a premium price car maker. We don’t know how many $37.5k (base 3 with delivery and paint) they will sell but that is still kind of premium (like base A4 or BMW 3 series).

The people’s car company and its lower price sub brands (ie not Audi, Porsche Lamborgini) really is a mass market company. Most of their customers are value oriented (otherwise they would buy an Audi). It remains to be seen where they will place their EVs in terms of price, though higher than same size gasoline for sure.

I think they are serious about EVs but Europe and China will be much bigger than the US (the land of cheap gasoline) for them.

eject

Regulation is the strongest driver. Chinese mandates and EU fleet emission targets leave manufacturers no choice.

Andy

That’s true as well, however I’d suggest that regulation is also inter related with the technological effect. If it’s not physically possible to do something then the regulation won’t be created in the first place to do it. If the tech is there, and companies just need a push to use it then regulation can be put in place.

antrik

Technology has been and is improving bit by bit — but it’s surely no coincidence that most car makers suddenly started announcing big EV pushes shortly after Tesla raked in the enormous number of Model 3 reservations…

John-EU

It says by Mid 2020 the ramp up should be at the 100.000 car level, so five years later than 2020.

David H

No, by that time they want to be producing only electric vehicles.

Pushmi-Pullyu

Please read the article again, this time with critical thinking engaged. John-EU is correctly referring to what the VW rep actually said, rather than what this article incorrectly claims.

David H

Excuse me, but last time I checked my german is quite good. The original Handelsblatt article says:

“Schon 2020 wolle die Marke auf 100.000 Elektroautos kommen, diese würden in Zwickau hergestellt, sagte VW-E-Mobilitäts-Vorstand Thomas Ulbrich dem Portal.”

“Already in 2020 the brand will reach 100.000 electric cars, those will be produced in Zwickau, said VW-e-mobility-chief Thomas Ulbrich said.

How on earth can you interpret that as “mid 2020s”? The quote in this article and in the original mentioning the 2025 time is referring to when this particular factory will produce only electric cars. That number will probably be about 250,000, if the current production is an indicator.

RAV4 EV

Do they say when EV production will start and when the first unit will come off the line?

If their goal is 100k by 2020 in this plant then there should be a ramp up.

antrik

I’m sure they can go from 0 to 100,000 within one year…

TM21

I’ll cut them slack. There are more automakers behind them than ahead of them.

Mark.ca

After so many years of teasing i’m happy with 100k.

Another Euro point of view

100k is only about 1% of their total production. VW group is understandably cautious.

John Doe

They produce more then 100 000 cars every 4 day – but the 100 000 EVs is from only 1 factory.
They will produce EVs at 16 factories.
They will produce several hundred thousand EVs a year by 2020, as they have started to release more models by then.

Pushmi-Pullyu

“They will produce several hundred thousand EVs a year by 2020…”

Like fun. The only way they could possibly do that is if most of those EVs have no batteries in them. VW knows the battery production capacity isn’t there to support high-volume EV production, and still won’t be by 2020. The VW rep said “mid-2020s” for producing 100,000 EVs per year, and that’s what he meant.

https://insideevs.com/lithium-ion-battery-shortage-looming/

G2

The VW group produced 10.8M vehicles last year and by 2020 0.833% will be “electric” and now they want the world to be impressed?
Yah. Not so much.

Cypress

100,000/yr is just for that single plant.

James

I read this article, including quotes, several times. If we read it enthusiastically with hope and a spoonful of sugar, it sounds downright awesome.

Yet, read it again and the “gear up to” and “mid 2020s to full EV” ( at Zwickau ) points seem ever so tentative. The mention of 16 worldwide auto plants and intentions are just corporate B.S.. Frosting. Mere words. You see how the quotes are cautiously couched. It sure sounds wonderful and rosey for an EV future, but Volkswagen is ever so trying to garner positive headlines for their company which nearly was destroyed by recent Dieselgate.

I’d come from Missouri when auto executives spout ever so wonderful EV promises. If you do not know, the State Slogan for Missouri is “The Show Me State”. In other words, talk is cheap. I’ll believe VW will convert one or more complete factories, or even produce 100,000 BEVs within one calender year WHEN I SEE IT WITH MY OWN TWO EYES.

John Doe

This will be no problem. They will produce more then 100K just in China by then.

antrik

You want to see it with your own eyes? Are you planning on camping out at their factory, like the crazy Tesla stalkers? 😉

ffbj

Oh Joy!

Benz

I would be impressed if VW would produce and deliver one million copies of the VW I.D. Neo per year (as from 2020).

Andy

That would be impressive, that would make it the most popular vehicle in the world.

Benz

No.

That is the Toyota Corolla.

More than a million sales per year.

The delivery of the 50,000,000th Toyota Corolla will take place in the first half of the next decade.

antrik

A quick google seems to suggest it was below a million in 2017. (Though still a bit ahead of VW Golf.)

Benz

Before 2017 the global annual sales total of the Toyota Corolla was more than a million.

2017 might have been an exception to the rule.

Andy

It’s around a million depending on year. But that was the point of the comment. It would be extremely impressive if VW manage to create a vehicle that becomes one of the most popular vehicles on the planet.

A more realistic goal would be in the half million volume, which is where a lot of popular vehicles are.

Benz

Half a million would be impressive as well.

The point is that VW should have the confidence to aim high.

VW is a very big player in the automotive industry.

They have a reputation.

100,000 doesn’t really suit them.

antrik

So you want the Neo to outsell the Golf in the first year of production? You are not easily impressed, that’s for sure 😛

Benz

I want all EV models to be successful.

Brave Lil' Toaster

Talk is cheap.

Murrysville EV

100k EVs/year? Where will they get the batteries for that many cars?

Cypress

From the $48billion in battery orders they put in to cell makers.

Pushmi-Pullyu

Talk is cheap, and VW has a very well established history of vaporware when it comes to EV claims.

Let’s see them put their money where their mouth is, this time.

John Doe

They have . . . billions of dollars.

eject

VW is planning for 170-200 GWh of batteries in 2025.

Andy

Yes, but they aren’t Tesla so none of what they ever say actually counts to some people. Those people are going to be in for a shock in a few years.

michael

Cool looking car. I may be able to buy it before my $35k 3 comes in.