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The Dieselgate emission scandal forced the German Automaker, Volkswagen, to overhaul its business plan and accelerate its electric vehicle strategy. The new strategy announced in June 2016, named “TOGETHER-Strategy 2025,” ties all of the five brands in the Group to the roadmap. Key objectives of Strategy 2025 is efficiency, autonomous driving, mobility and electrification which would see the company significantly reduce the number of models it manufactures but at the same time introduce over 30 new electric models across Skoda, Porsche, Lamborghini, VW, SEAT, and Audi enter the market by 2025. New model ranges such as the VW XL3, a plug-in hybrid aimed at the Toyota Prius, is expected by 2020. VW plans to re-establish itself as a pioneer in the EV segment with pure electric model ranges such as the Phaeton luxury saloon. Achieving the goal set by Strategy 2025 would mean that plug-in vehicles would account for 25% of total annual sales by 2025 which is equal to three million battery vehicles per year.

With efficiency and cost saving in mind, production and design architecture is standardized on a multi-brand toolkit suitable for passenger and light commercial vehicles which will enable and an all-electric range of between 155 miles to 310 miles.




Compact Car EV



City Car EV



Mid Size Car PHEV



Compact PHEV






Go to our detailed breakdown of Global EV Sales to see how the VW electric car strategy fares to its competitors in the fast-growing EV market.



2017 Week 25 - I.D. Buzz production confirmed

Two VW Group companies this week confirmed the production of exciting concept vehicles introduced recently.

Audi announced that it will start producing the Audi e-tron Sportback EV at its Brussels plant from 2019 while VW’s Chairman, Dr. Herbert Diess confirmed that it will produce a version of the of the I.D. Buzz unveiled last year. The I.D. Buzz will join the I.D. Crozz in production and compete with Tesla‘s expected Type II people carrier.

2017 Week 20 - VW Strategy – The future is electric, long live the combustion engine

The VW shareholders this week approved the automaker’s electric vehicle strategy, “TOGETHER – Strategy 2025” and accompanying budget at the AGM held in Hamburg. Unpacking the VW CEO, Matthias Müller’s, statements the VW strategy is – “The future is electric, long live the combustion engine.

The VW board recently upped its €3bn investment in alternative drive engines from the previous five years to €9bn by 2022. The company, however, will spend €10bn on cleaner combustion engines over the same period. VW sees conventional engines to be between 10% and 15% cleaner and efficient by 2020.

Mr. Muller was quoted as saying “We intend to be the No. 1 in e-mobility by 2025”. He went further elaborating how the company will achieve its strategy. “This is how the Group will be rolling out more than 10 new electrified models by the end of 2018. By 2025, we will be adding over 30 more BEVs.” The newly-established Center of Excellence in Salzgitter will bundle Group-wide competence in battery cells and modules. “At the same time, we are conducting intensive negotiations to establish partnerships in the field of battery cells in Europe and China. You will soon be hearing more about this”, the CEO added.
According to Müller, modern internal combustion engines will nevertheless be indispensable for the foreseeable future: “This applies also and especially to the Euro 6 diesel, despite the current heated debate.” In total, the Volkswagen Group will be investing around 10 billion euros in these technologies by 2022, Müller: “The internal combustion engine primarily is part of the solution, not part of the problem.”

The German automaker decided to use partnerships as a tactic in achieving its goal. Müller referred to several examples such as the plans to enter the economy segment with Tata, the envisaged joint venture with JAC in China to develop attractively-priced electric cars, and numerous cooperation projects in the field of mobility services.

The e-mobility sector is going to become very crowded for VW as most automakers have already embarked on the same strategy. See the reference to Ford later in this week’s newsletter. Daimler has already accelerated its strategy and brought forward its $11Bln investment from 2025 to 2022 this year. read our blog of this week where we compare the Daimler and BMW strategy.

2017 Week 17 - VW continue to see electric vehicles only as a niche going into the next decade

The recent surge in Tesla‘s share price, which is close to the first target of $320 called by wattEV2Buy on the 3rd of April, has put a spotlight on traditional vehicle manufacturer electric vehicle strategies. VWs CEO, Mr. Matthias Müller, this week reprimanded the media for getting too carried away with the “New Beats Old” storyline. Mr. Müller was quoted by The Financial Times at the Vienna Auto Show on Friday, responding to Tesla‘s surge – “This has little to do wth the reality on our streets. The VW Group produced 10.3m vehicles last year – Tesla around 80,000, and the fact is, electric mobility continues to be niche. VW only see’s that one out of four of its vehicles would be electric by 2025.

The world’s largest automaker will spend around €20bn by 2022 on cleaner engines, of which only 45%, or €9bn, would be on alternative drive tech, which at least is a trebling over the amount of only €3bn spent over the last five years. The €9bn budget is less than the €11bn earmarked by fellow German automaker, Mercedes, over the same period. Analysts have been concerned over certain automakers conservative electric vehicle strategies in the face of Tesla and China‘s dominance in the sector.

2017 Week 16 - More Concept’s and a few production-ready vehicles at Shanghai Auto Show

The New York and Shanghai Auto Show’s provided many newsworthy releases related to electric vehicle strategies, concept cars, and some productions cars. Although the New York auto show had all thirty plus electric vehicles available for sale in the State on view, the Shanghai Auto Show were the place to be for electric vehicle enthusiast. The VW Group teased its Audi eTron SUV and VW I.D. CROZZ concepts, which is only expected by 2019. Tired of all these old auto companies releasing concept after the other without having real competition for the Tesla available? Two production ready vehicles from newcomers Lucid Motors and NextEV‘s NIO brand were unveiled at the Chinese event. NIO’s ES8 seven seater SUV is expected to be available in China by the end of the year. The company also announced that it would add ten more units to its fleet of six EP9 supercars, priced at $1.48 million.

2017 Week 8 - SEAT to unveil electric prototype

SEAT, the Volkswagen-owned auto manufacturer will display an electric vehicle prototype at this week’s Mobile World Congress in Barcelona, Spain. The vehicle includes it’s Digital Access technology, replacing a key with a mobile phone. The first pilot will kick-off at its factory in Spain, using employees. Connectivity and the Internet of the Vehicle are bringing the world of mobile ever closer to the auto sector.

2017 Week 6 - VW creates $2Bln zero emission vehicle awareness program

Volkswagen USA announced the creation of a unit to channel $2 billion into zero emission vehicle awareness programs and charging infrastructure over the next decade. The commitment forms part of the Group’s settlement in the diesel emission cheating case, but ultimately the move is also in support of the company’s bold strategy shift to focus on electric vehicle technology. The unit named Electrify America, based in Virginia and will oversee the installation of 500 charging stations and a pilot Green City program.

2016 Week 51 - VW underperforms in consumer survey

Tesla voted the consumers darling in the Consumer Reports Annual Owner Satisfaction Survey with 91% Tesla owners responded with a “Definitely yes” when asked if they will buy the brand again. Second with only 84% was Porsche. The bottom quartile included brands such as Jeep, Nissan, Fiat, and Volkswagen, which dropped eight places. The survey included over 300,000 vehicles. Can the States who is refusing Tesla’s direct selling model, naysayers, and auto dealers refusing to get behind electric vehicles please respond to this?

Consumer Survey wattev2buy

2016 Week 47 - VW to build battery factory

1. In an effort to re-engineer itself after the emissions scandal, Volkswagen aggressively changed its strategy towards an electric vehicle future. Signs of the company’s EV plans emerged this week during a news briefing where the company and its unions agreed to the retrenchment of 30,000 employees. Reuters reported that VW CEO Matthias Mueller commented on the feasibility of the automaker building its own battery factory in the light that more than a quarter of its models would be electric, requiring more than 3 million batteries a year. It also emerged that a potential partnership between VW and UBER failed.

2016 Week 46 - Los Angeles Auto Show

1. The Los Angeles Auto Show ended up being quite exciting for the Electric Vehicle segment, boding well for the market, with various automakers unveiling new models. VW unveiled its Golf full-electric model and announced that it would be entering the market in 2017. The e-Golf achieves a range of 124 miles from its 35.8kWh battery. Mazda, who has been auspicious in its absence from the EV market announced that it would have various electric models by 2019. Hyundai announced that its changing direction away from hydrogen fuel cells to battery electric vehicles with 14 new alternative vehicles by in the US by 2020. The product mix will include four plug-in hybrids, four electric and one hydrogen fuel cell model. Jaguar unveiled its much anticipated full electric model, the I-Pace. The automaker’s first attempt is expected by 2018 and will have NEDC range of over 250 miles from a 90kWh battery and accelerate from 0 – 60mph in 4 seconds.

2016 Week 40 - Paris Auto Show

1. VW announced at the Paris Motor Show that it will develop a low-cost electric vehicle for the Chinese market only in conjunction with its local JV partner JAC (Jianghuai Automobile Company). The company plans to codevelop similar products with its other JV partners, SAIC and FAW by 2020.

2016 Week 39 - Paris Auto Show

1. For the first time at an international auto show, electric vehicles took center stage at the Paris Auto Show this week, overshadowing new reports of Tesla autopilot crashes, refuted by the company. The prominence of electric vehicles at the show confirms the shift towards the segment. Most of the front runners in the segment were presented there and used the opportunity to unveil new models, such as the Opel Ampera-e, which is the Chevrolet Bolt badged for the European market. VW unveiled its ID concept vehicle and Renault the Trezor.


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A summary of autonomous vehicle testing in 2016 on California’s public roads

According to the regulations, each permit holder must annually file a disengagement report, reflecting the number of events where a driver essentially has to take over from the vehicle’s autonomous mode to either prevent a traffic incident or where the system fails.

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