“The future of the car is electric,” statement became popular in 2010 but the world still witnessed the use of combustion engines for the next decade. In the 2010 VW annual report, the group acknowledged that carbon-neutral mobility is the future. Nine years later, the group focussed on its “Together Strategy” that aimed at making it more energy-efficient, innovative, and sustainable. Today, Volkswagen’s electric vehicle strategy is known as “Together 2025+”.
Volkswagen group plans to shape future mobility by introducing electric vehicles with electric drives, digital connectivity, and autonomous driving.
Electric vehicles are quieter, safer, and environment-friendly. So how has Volkswagen set its Electric Vehicle Strategy?
Volkswagen unveiled details about its Strategy 2025+ business plan, describing its vision across Audi, Porsche, SEAT, Skoda, and Volkswagen.
The group is hoping to achieve an Electric Vehicle future by investing in electrification by launching over 30 electric models by 2025. According to the strategy, the new electric vehicles will use more efficient battery technology than the current models.
The new models will include electrified versions of petrol or diesel cars and standalone vehicles.
Volkswagen expects to have over 300 gigawatt-hours’ worth of battery cells to produce three million electric cars in four years. To meet this demand, the group aims at establishing partnerships in China, the USA, and across Europe to work with their current battery supplies that is just enough for 2021.
Volkswagen has therefore come up with the department dubbed “Center of Excellence,” which is responsible for the development and procurement of quality battery cells.
In 2019, the department came into a joint venture with Northvolt AB and plans to invest VW’s €900 million to build a 16GWh battery cell factory in Salzgitter, Germany.
The production is expected to begin at the end of 2023 and the beginning of 2024.
A further leap into the future sees more focus on autonomous driving technology. The group will develop its unique self-driving system and along with the battery development, the group’s investment in future technologies will pass the€10bn mark.
The strategy 2025 revealed that the group has already invested $300 million in Gett with expectations to continue with the plans of working on in-house autonomous ‘Robo taxis’
A Bright Future?
In the next four years alone, €60 billion will be invested in future technologies, €33 billion of which is set for e-mobility, and more than €14 billion for digitalization.
The next decade will determine how worth Volkswagen’s massive leap of faith into the future will be. With huge investments in technology and inventions, the answer to Electronic Vehicle development could be nearing. What we know is that for this to happen, Volkswagen has to commit to its strategy fully.