Volkswagen reveals its ten-year blueprint: Affordable electric vehicles to be manufactured overseas
Volkswagen is set to reveal their plans for the next ten years, with a focus on electric vehicles. At their recent annual general meeting, CEO Oliver Blume shared that the foundation for their 2035 strategy will be laid in 2024. This strategy will act as a guiding light for their actions until 2035. They aim to introduce more than 30 new vehicles across various branches, including combustion engines, hybrids, and electric vehicles.
Blume emphasized the importance of electric cars in the automotive industry. He emphasized that their investments are heading towards this area. Volkswagen plans to introduce an affordable electric car around the €20,000 price range by 2027. "This way, we'll remain committed to providing affordable mobility for future generations," said Blume. Previously, it took around five years to develop new models at VW. However, Blume assured that "Volkswagen is capable of developing quickly, efficiently, and effectively - with European Speed."
The location for the production of this new model has yet to be decided. Germany is not under consideration, mentioned Blume. Volkswagen has already assigned the manufacturing of the €25,000 ID.2all to its subsidiary Seat in Spain due to cost-related reasons.
Critical investors expressed concerns about how well Volkswagen will meet the stricter CO2 targets in the European Union, especially considering their current product portfolio. Union Investment's Janne Werning stated that it would be challenging to drastically increase the share of electric vehicles to meet the targets from 2025. "The risks of sizable fines from Brussels are rising," she added.
Blume also addressed the matter of Traton's free float. He plans to enhance Traton's free float, thereby raising the chances of its inclusion in the MDax. However, Volkswagen still intends to keep 75% of the shares and a single share in Traton. "We want to remain an engaged and responsible shareholder," said Blume, without revealing the exact amount of shares to be made public. At present, Traton's free float is around 10%.
Volkswagen is not rushing towards a stock market launch for their battery subsidiary PowerCo. CFO Arno Antlitz stated that there are no current plans for an IPO. Even though it's an option for the future, the focus is currently on starting pre-series production of batteries in the Salzgitter factory and developing two more large plants in Spain and Canada. Preparations have already been laid out for these plants, assures Blume. Volkswagen seeks to benefit from the unit cell in the production of electric cars.
Moreover, the human rights situation in China's Xinjiang province was mentioned during the shareholders' meeting. Werning accused Blume of not addressing the situation satisfactorily, citing the use of forced labor during the construction of a test track. Despite this, Volkswagen board member Manfred Doess confirmed that Volkswagen and their Chinese partners agree on the need to uphold fundamental rights, including at joint venture sites in Xinjiang. Volkswagen operates a plant in Xinjiang together with SAIC, and they are in advanced talks with SAIC about the future direction of their business activities there.
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