Volkswagen to go electric-only in US

The major automakers across the globe have made it very clear that the future of mobility will be comprised of electric vehicles, and to show its commitment the German auto manufacturer Volkswagen has made a huge announcement for its operations in the United States of America. The Wolfsburg based auto giant has announced that it will have an all-electric portfolio in the USA from the beginning of the next decade. VW also added that it will begin to phase out gasoline-powered vehicles from its American lineup.

The German carmaker on its future plans said that the ICE vehicles in the brand’s portfolio will be replaced by an array of more than 25 new battery electric vehicles (BEVs) through 2030. Some of the models in the upcoming EV line-up will be the American-assembled ID.4 in 2022, the ID. Buzz electric microbus in 2024, and new electric SUVs from 2026.

To further exhibit its commitment towards a cleaner and greener future in the United States of America, VW also announced that it will be investing $7.1 billion over the next five years in the North American region to boost its product portfolio, regional R&D and manufacturing capabilities. Scott Keogh, President and CEO of Volkswagen Group of America, Inc., briefed the media on the company’s forthcoming strategic plans. He announced that Volkswagen wants to push 55 percent of U.S. sales to be fully electric by 2030 by domestically integrating its combustion-engine (ICE) and electric vehicle (EV) manufacturing, American-focused engineering, battery know-how, and software development.

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Keogh during the announcement said, “American ingenuity and manufacturing know-how are at the heart of our strategy for growth, and thousands of men and women are working hard every day throughout North America to bring the Volkswagen brand to life for consumers,” He further added, “This profound commitment to our localized capabilities will transform Volkswagen into one of the leading EV brands known for its commitment to innovation, quality, and the communities we call home.”

The global Volkswagen Group also intends to establish a battery cell manufacturing facility in the United States to address the expanding demand for batteries across its brands. The Group is actively evaluating governance and finance options, with the goal of making a decision by 2022.

To grow beyond the battery supply operations, Volkswagen also wants to expand its battery know-how in the United States. For this, the company will be commencing the operations in its new Battery Engineering Lab (BEL) in Chattanooga, Tennessee from the month of May this year. The BEL has been set up with an investment of $22 million and VW aims to test and validate batteries for all Volkswagen electric models in the American marketplace with its new facility.

Additionally, company CEO Keogh also outlined a commitment to developing software and digital solutions for American consumers directly in the United States. Volkswagen intends to offer over-the-air (OTA) upgrades and additional software capabilities, such as plug and charge, to the ID.4 this year as part of this. Volkswagen is also collaborating with CARIAD SE, the Volkswagen Group’s software business, to enable the development of its North American subsidiary in 2022, with software units in Seattle, WA, and the Bay Area of California. The objective is to expand the company’s digital footprint in the United States.

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