Thursday, July 09, 2020

(Reading time: 2 - 3 minutes)

The EV makes headlines again - this time with VW planning to release 30 electric vehicle models, not hybrids, all electric.

Whether this has anything to do with repairing the dieselgate scandal remains to be seen. Maybe Volkswagen like a challenge and are after Elon Musks Tesla reputation? All we know is that Volkswagen is after the title of green transport leader.

The Chief Exec of Europe's largest car manufacturer Matthias Mueller, said major investments would be needed to move past the "dieselgate" scandal towards e-mobility. Matthias hopes that by 2025, the ev market would account for around 20-25% of VW's total annual sales.

It looks like Volkswagen are positioning themselves ready for the new age of all electric cars, meaning a change from their previous strategy, after the emissions scandal, VAG need to be seen to be moving towards the future of green mobility. Mueller has outlined that electric car mobility is one of the "key building blocks in the new group strategy". The CEO continued saying that Volkswagen will focus on "the most attractive and fastest-growing market segments", he said. "Special emphasis will be place on e-mobility". The car manufacturer is to roll out a broad-based initiative in this area: over the next 10 years they are intending to release over 30 green vehicles all purely battery-powered. Matthias Mueller has spoken about his plans for VW eco-green cars, however, the CEO has hinted how self-drive vehicles and shared ownership fit into his plans - including the car sharing startup Gett.

The VW Group already have an impressive lineup of fully electric cars, including the e-UP!, the Golf GTE, the e-Golf, the upcoming Mission E by Porsche, and the R8 e-tron. The addition of 30 new models of e-mobility cars frankly boggles the mind! This announcement will put the German car maker up there with the likes of Tesla, Mitsubishi, Ford, Volvo and Nissan - all automotive leaders in the e-car arena, couple this with the possible investment into a multi-billion euro battery factory, shows clearly that VAG are seriously looking to the future, and not the past.

The Dieselgate scandal has done no favours for the car brand, however it may have helped realign the manufacturers goals for the future of Eco transport. Where does VW stand Mr Mueller said the VW transformation would involve many billions as well as a cost-cutting where it would compromise, as well as all VAG family. "This will require us - following the serious setback as a result of the diesel issue - to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity."

All 26 plants, are to be streamlined, with additional focus on cutting admin and sales costs. Sales of Volkswagen-branded cars are still being affected by the recent emissions scandal, however sales rose 4.1% in May, compared to the same month last year. However other car manufacturers had 28.7% growth for Renault and 18.7% growth at PSA Group, owner of Peugeot and Citroen showing VW's are still slow in comparison.

The VW, Audi, Skoda and Seat market share for the five months to May, was 23.9%, the lowest since 2011. As we head into the third quarter of 2016, it looks like VAG is making up for lost ground - Mueller has been quoted saying "But there is a lot more to Volkswagen than diesel."

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