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© Volkswagen AG - Matthias Müller Electronics Production | September 12, 2017

Volkswagen earmarks €20 billion for new electrification initiative

The Volkswagen Group is launching – what the company calls – the most comprehensive electrification initiative in the global automotive industry with its "Roadmap E".
Under the initiative Volkswagen aims to electrified its entire model portfolio by 2030 at the latest. This means that, by then, there will be at least one electrified version of each of the 300 or so Group models across all brands and markets. The Group would need more than 150 gigawatt hours of battery capacity annually by 2025 for its own e-fleet alone. This is equivalent to at least four gigafactories for battery cells. To meet this demand, the Company has put one of the largest procurement volumes in the industry's history out to tender – over EUR 50 billion, according to a company press release.

"We have got the message and we will deliver. This is not some vague declaration of intent. It is a strong self-commitment which, from today, becomes the yardstick by which we measure our performance," said Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, at the Group Media Night ahead of the International Motor Show (IAA) in Frankfurt, Germany.

Volkswagen had already established e-mobility as a key focus area in its “future program” which the group presented last year,. The Company estimates that around one in four new group vehicles – up to three million units a year depending on how the market develops – could be purely battery-powered already in 2025.

The group brands will bring a total of over 80 new electrified models to customers by 2025, including some 50 purely battery-powered vehicles and 30 plug-in hybrids. This figure will then increase by leaps and bounds over subsequent years until there is at least one electrified version for each of the Group's 300 or so models across all vehicle classes worldwide by 2030 at the latest.

Capex in e-mobility to be ramped up

"Roadmap E" is also coupled with another increase in capex on e-mobility. Up until 2030, the Group will earmark over EUR 20 billion for direct investments in the industrialization of e-mobility: in new vehicles based on two entirely new electric platforms, in upgrading plants and in training for the workforce, in charging infrastructure, in trading and sales and, last but not least, in battery technology and production,” Müller explained.

Volkswagen is addressing the issue of battery technology with a multi-stage medium- to long-term strategy – starting with bundling group-wide development, procurement and quality assurance activities for all battery cells and modules in a "Center of Excellence" in Salzgitter. The Volkswagen brand is also setting up its first pilot line there to accumulate production know-how.

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November 14 2017 8:30 PM V8.8.9-2