The Volkswagen Group intends to give renewed impetus to its transformation process into a company specialized in digital mobility. As planned in planning round 69, the group will spend approx 73 billion euros in the electrification process, in hybrid powertrains and digital technology over the next five years. The new round was announced within the company’s Supervisory Board, where it was determined that investments in technology will increase from 40 to 50% compared to the total amount of the group’s investments.
Volkswagen in the future like Tesla?
It is about 150 billion euros, of which 27 will go to digitization projects, while around 35 billion euros will be spent on battery electric vehicles. An additional € 11 billion will be allocated for the development of hybrid vehicles of existing models. In the statements following the announcement, the CEO Herbert Diess confirmed that these investments are aimed at reach Tesla. “Yes, it will be a race with Tesla” he said.
It is certainly an ambitious goal, not only for the technological level reached by the American company but also for its production capacity. With the factory of Fremont which produces over half a million vehicles per year and with the company’s other three plants Elon Musk that are increasing the pace of production, Tesla has an advantage in terms of pace of production of electric vehicles notable over all other car manufacturers.
“They are growing fast” Diess admitted. “But we have more variety in terms of models on the market and an advantage as a dealer network”. Volkswagen benefits from a much larger distribution network than Tesla, but Tesla has the advantage of owning centers owned by him instead of relying on third party dealers. In absolute terms, moreover, obviously Volkswagen can boast a higher production capacity than Tesla, but if you look only at electric vehicles only a small part of its production lines updated and valid at Tesla levels.
With these announcements, however, Volkswagen demonstrates that it has “learned the lesson” and accepted theelectric as the indisputable future of mobility. It will take some time to reach Tesla vehicle standards and performance, but these substantial investments seem to confirm the seriousness of the plans. Furthermore, the German group suggests that it is willing to convert the production capacity of gasoline cars into production capacity of electric vehicles.