#IAA: Volkswagen Completely Overhauls Investment Strategy - Dedicates $84 BILLION Towards EV Development

#IAA: Volkswagen Completely Overhauls Investment Strategy - Dedicates $84 BILLION Towards EV Development

#IAA: Volkswagen Completely Overhauls Investment Strategy - Dedicates $84 BILLION Towards EV Development

Up to the point it admitted in 2015 to cheating on diesel emissions tests in the U.S., Volkswagen was slow to embrace electric auto technology.

Like Volvo and Jaguar Land Rover, VW Group is pledging to have an electric version of each of its new models available; it is not promising that it will build only electric and hybrid vehicles.

The German carmaker also said it will invest 20 billion euros ($23.9 billion) by 2030 in the electric-car efforts, allocating the money to developing two kinds of chassis exclusively for electric cars, as well as factory enhancement, expansion of car-charging infrastructure and development of batteries.

"The transformation in our industry is unstoppable". And we'll lead that transformation.

The German carmaker said it will invest over €20bn by 2030 in the electric-car efforts. Diesel, meanwhile, was a convenient choice because it generated peppy acceleration while emitting about a fifth less Carbon dioxide than comparable gasoline engines.

"Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins", said the Bernstein analyst Max Warburton. Mueller said the company would await firm commitments before reacting. Either way this includes several brands, like Audi, Bentley, Bugatti and Porsche, to name a few. Tesla has started to roll out the $35,000 Model 3 to broaden its appeal and stem billions of dollars in losses. The company's board of directors was opposed, however, so electric cars have seen little love from VW until now.

As the latest such reported statement by China added momentum to a push for zero-emissions motoring, German titans Volkswagen, BMW and Daimler all announced far-reaching electric vehicle programmes in the run-up to the Frankfurt Motor Show. The company estimates it will need to produce 150 gigawatt hours of battery capacity annually by 2025 to keep up with consumer demand, over four times more than the capacity of Tesla's own gigafactory. This announcement has come as part what is being called the largest electromobility campaign in the automotive industry.

"Financially we're very robust", Mueller said in a Bloomberg TV interview.

It also follows Shell announcing it will begin installing electric vehicle charging points in the United Kingdom this month.

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