Friday , April 16 2021

VW is investing € 44 billion in e-mobility and autonomous driving



Wolfsburg – With stringent measures and billions of investments in electric cars Volkswagen wants to set up for the future. The Group Supervisory Board in Wolfsburg decided on Friday to invest almost 44 billion euros in the e-mobility, autonomous driving and Internet services in the future over the next five years. That corresponds to a third of total spending until the end of 2023, says Volkswagen CEO of Herbert Diess.

Above all, the plants in Zwickau, Emden and Hanover should benefit from investments. While in Zwickau in 2020, the Volkswagen ID as the first electric car of the new offensive model runs off the line to be built in Emden from 2022 small cars and battery sedans for several brands of & # 39 ; r group. In Hanover from 2022, the Bulli ID Buzz electric successor will be installed. Employees in Emden and Hannover receive protection against redundancy until 2028.

VW, chief council, Bernd Osterloh said: "I am particularly pleased that we have been able to locate the majority of electromobility in our factories in this country." As well as China and the US, Western Europe will be a pioneer in the introduction of electric cars.

E-cars should form one fifth of Western Europe production by 2025. VW produces six models with a battery drive today, it should be more than 50 by 2025. There will be a total of around € 44 billion in going to e-mobility. VW did not want to commit itself to potential investments in European battery production.

Change will cost jobs

Changing to the less complex electric motors will cost jobs. Therefore, Volkswagen in Emden and Hanover will not take over the fixed-term employees, but will offer them to relocate to other Group locations, as announced by the company. The core workforce should be reduced by partial retirement. The Supervisory Board did not want to comment on the scope.

Passat VW production is to move from Germany to Skoda Kvasiny Skoda plant. From there, the construction of Seat and Skoda models will be contracted out to a new plant where a location is currently being searched in Eastern Europe.

Combining the production of various brands is an example of the Diess strategy to bring together the group's individual brands even more closely to take advantage of economies of scale. So the group wants to increase its factories' production by 30 per cent by 2025.

In the area of ​​light commercial vehicles, VW wants to cooperate in the future stronger with the US Ford competitor in the development and production. CEO Diess According to the car manufacturers, there is a need to unite vehicle platforms and shared factories. The co-operation should be "in the towel" by the end of the year, he said. Cooperation in other areas did not prevent Diess.

CEO is power to expand

The CEO was able to expand his own power significantly in the company. The Supervisory Board decided to transfer responsibility over that to China, the most important car market, from mid-January. In the daily business manager should support it. In the coming year alone VW wants to invest four billion euros in the People's Republic. (APA / AFP)


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