Automobile in focus - VW aims to accelerate the pace of electrification.
Volkswagen Group CEO Oliver Blume is dedicated to continuing the pace of electric vehicle development despite a current downturn in the market. "We view electric mobility as the future of the automotive industry," Blume stated at the virtual annual general meeting in Wolfsburg. The company plans to accelerate their pace when it comes to creating new electric vehicles.
Within three years, they aim to launch an affordable electric model costing around €20,000. This will serve as an example of how "Volkswagen is capable of developing quickly," he explains. Typically, VW takes about five years to develop new models.
This drive for speed is part of Blume's initiative to future-proof the company and prepare for a future without combustion-engine vehicles, which the company has traditionally relied on. Blume emphasizes the need for political support in the transition to electric cars. "It's crucial that high-speed development of e-mobility is supported from all angles, including the political side, as well." Manufacturers require stability in planning. Lately, there have been suggestions within the EU to push back their goal of completely transitioning to electric cars to 2035.
Germany not as cost-effective
The upcoming €20,000 VW model, known as the ID.1, will raise the bar in terms of design, quality, equipment, and technology at a reasonable price. This low-cost vehicle will be manufactured in Europe, and although the production location remains undecided, Germany is not being considered due to expense reasons. VW has already assigned the production of its 2026 ID.2 model to group subsidiary Seat in Spain for similar cost reasons.
Several disruptions were expected at the Wolfsburg meeting as they occurred last year in Berlin. The company invited their shareholders online, but a small group of activists staged a protest outside the factory, posting banners and organizing a limited demonstration. At the last annual general meeting in Berlin, climate and human rights activists disrupted the event, with VW supervisory board member Wolfgang Porsche (80) narrowly escaping an attack involving a thrown cake.
Shareholder representatives criticized the decision to host the event digitally again this year. "You were dodging a thrown cake in Berlin, and now you're dodging your shareholders," said Ingo Speich from DekaBank, adding it damages both the company's reputation and the shareholder culture in Germany. "Although the virtual format introduced during the pandemic shouldn't become the norm, it should not harm the corporate and shareholder culture in Germany," suggested Marc Liebscher from the Shareholders' Association.
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- Despite the market's current slump, Volkswagen Group CEO Oliver Blume remains committed to boosting electric vehicle development, viewing it as the industry's future, as expressed during the Annual General Meeting held virtually in Wolfsburg.
- Blume aims to expedite the company's pace in creating new electric vehicles, with the plan to launch an affordable model priced around €20,000 within three years, showcasing Volkswagen's rapid development capabilities.
- This accelerated development strategy is part of Blume's plan to safeguard Volkswagen's future by transitioning away from reliance on combustion-engine vehicles, which require political support to ensure stable planning.
- The upcoming €20,000 model, known as the ID.1, signifies a significant advancement in design, quality, equipment, and technology at an affordable price, set to be manufactured in Europe but not in Germany due to high production costs.
- Volkswagen Group's target of launching a low-cost electric vehicle will have a significant impact on the automotive industry in Germany, Lower Saxony, and throughout Europe, potentially prompting competitors to follow suit.
- The company's commitment to rapid electric vehicle development and innovative design has sparked interest among European shareholders, with some expressing concerns about the lack of in-person Annual General Meetings, such as the recent event in Berlin where activists disrupted the proceedings.
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