Oct 11, 2017,  by Allianz Worldwide Partners Business Insights

Volkswagen investing 70 billion euros to develop electric cars and batteries

The German auto giant has stated its wish to invest some 84 billion US dollars into the development of its forthcoming electric vehicles, to enable the "people’s car" to become a more eco-friendly one.

Allianz - Charging point electric car

 

At the 2016 Paris Motor Show, Volkswagen stated its wish to have its various models running as autonomous electric vehicles by 2020, capable of going 500 kilometres without having to be recharged. The German auto giant has recently ploughed 84 billion US dollars (around 70 billion euros) into this project to develop electric vehicles, meaning that each of Volkswagen’s 300 models should be available as electric – and therefore less polluting – versions by 2030.

 

Investment focusing on electric batteries 

 

Of a total investment of 70 billion dollars, Volkswagen will be devoting 60 billion dollars (50 billion euros) to the development and production of new electric-type batteries, which are a key element in the German auto manufacturer’s transition to more environmentally-friendly vehicles.

 

New CEO committed to electric vehicles

 

"A company like Volkswagen needs to lead, not follow," new Volkswagen CEO Matthias Muller said to the BBC on 11 September, at the opening of the Frankfurt Motor Show, being held from 14 – 24 September. "We have taken this message on board and we will do what needs to be done. This is no vague declaration of intentions. It is a strong commitment that we are taking, and which as of today has become the measuring-stick for our performance."

Muller, who was named CEO in the aftermath of the scandal concerning fake results for emissions tests for polluting particles which hit Volkswagen hard in 2015, thus confirmed the group’s move towards electric cars. The production of four new models of electric – and thus less polluting – vehicles by 2020-2021 has also been the subject of an official announcement.

Volkswagen’s desire to move away from traditional combustion engines is part of a global tendency, with plenty of other manufacturers unveiling development projects for new electric models, in particular in China which is now the world’s largest vehicle market.

 

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