VW Group (Part 2): Building EVs at 16 plants worldwide by 2022
Partnerships with Aurora, NVIDIA and Apple on autonomous driving technology
|Audi’s flagship SUV Q8 (Photo: Audi)|
As part of its medium-term business plan “Together - Strategy 2025” released in June 2016, the VW Group has been advancing electrification, promoting SUVs, developing mobility services, and reducing capital expenditures and R&D costs. As a result of these efforts the Group achieved record profitability in 2017. Upcoming tasks include resolving the diesel crisis, cost reduction, compliance with stricter emissions regulations, and improving the profitability of mobility services.
The VW Group has shifted to electrification following the diesel emissions scandal and released its strategy entitled “Roadmap E” in the fall of 2017. This strategy intends to launch 50 EV and 30 PHV models by 2025. According to its production plan for electrified vehicles unveiled in March 2018, the Group will build EVs at 16 plants in Europe, China and the U.S. by 2022. The Group is contracting with battery manufacturers to procure the necessary batteries for each region.
To offer sustainable mobility, the VW Group plans to invest EUR 34 billion in electrification, digitalization, autonomous driving technologies and mobility services through 2022. In 2018, the Group partnered with Aurora Innovation, NVIDIA and Apple on autonomous driving technologies. In the area of connected cars, VW partnered with Microsoft, agreeing to use its cloud services.
In its new model launch plan, the VW Group will continue its SUV offensive in Europe, China and North America. In the premium car segment, Audi introduced the Q8 flagship SUV and the Q3 compact SUV in 2018. In the volume car segment, the VW brand released the new Touareg flagship SUV and the all-new T-Cross. In addition, the VW brand plans to launch the all-new Tharu and Tayron SUVs exclusively for China.
Also, please refer to Part 1 of this VW Group series regarding the VW Group’s reorganization of its operations, the spin-off of its truck and bus division, its partnership with Hino Motors, sales volumes and financial results for the first half of 2018, outlook for 2018 full-year business results, and LMC Automotive’s sales forecast.
VW Group (Part 1): Reorganizing operations into 7 business units (Nov. 2018)