AUTO INDUSTRY NEWS

Volkswagen Group to invest $40B in EVs, autonomous tech

Volkswagen Group to invest $40B in EVs, autonomous tech image

Jose Altoveros / Volkswagen | November 21, 2017 14:05

Majority of VW investment to go into hybrid and electric vehicle development

Lately, automakers have been shifting their focus on electrification together with autonomous driving. More specifically starting from 2018 to 2022, the Volkswagen Group will further step up their efforts into electrification by investing some $40 billion US which will go into the development of electric and autonomous vehicles as well as new moblity services and digitalization.

Majority of the investment will go into the hybridization and electrification of all Volkswagen Group vehicle together with the upgrade of facilities to produce these vehicles. This coincides with the Group's earlier Roadmap E strategy of wanting to offer an electrified variant of every model by 2030. Given that VW Group has around 300 vehicles, it seems logical to start as soon as possible.

New models are also expected to be introduced in the upcoming years as previously announced. So far, Volkswagen has already previewed three future EV models in form of the I.D. concept vehicles. Some of these models are set to be introduced in the next decade with an I.D sedan slated for a 2020 launch and the I.D Buzz confirmed for 2022.

"We are reinventing the car. We are making targeted investments in digitalization, autonomous driving, electric mobility and new mobility services by providing the necessary funds from our own resources. We are, however, doing so without sidelining existing technologies and vehicle projects, since this is how we will earn our money for the foreseeable future,” said Matthias Müller, CEO of Volkswagen Group.

As for the facilities, Volkswagen will be transforming the Zwickau plant in Germany into a pure e-mobility plant producing e-vehicles. Volkswagen will also be launching the new Modular Electric Baukasten (MEB) platform, set to underpin all new upcoming EVs, to be produced at the Zwickau site.