General Motors’ rival Volkswagen has announced it will invest $7.1 billion in North America over the next five years to expand its battery-electric product portfolio here.
In a statement released Monday, Volkswagen Group of America CEO Scott Keogh said this investment in the automaker’s North American manufacturing operations “will transform Volkswagen into one of the leading EV brands known for its commitment to innovation, quality, and the communities we call home.” Volkswagen will begin to phase out gasoline-powered vehicles from its American line-up in 2030 and is hoping EVs will account for 55 percent of its U.S. sales within the same timeframe.
Part of the $7.1 billion that Volkswagen has sidelined will go towards U.S. battery cell production efforts, similar to GM’s own Ultium battery cell plants that it is currently building in the United States. The automaker says it is “currently assessing governance and finance models,” for these future North American battery cell plants and will provide more information on the facilities before the end of the year.
Volkswagen also said this week that it plans to upgrade its factories in Puebla and Silao, Mexico for the assembly of electric vehicles and components, including electric motors, by the middle of the decade. The automaker is currently renovating its existing plant in Chattanooga, Tennessee to build the 2022 VW ID.4 electric crossover. Early examples of the ID.4 have been produced at a separate facility in Germany, but production will move to the U.S. once the renovations are complete.
Volkswagen says it also plans to “introduce more than 25 new battery electric vehicles (BEVs) to American consumers through 2030.” This will include the ID. Buzz cargo and passenger vans and a yet-to-be-announced electric crossover that’s slated to launch in 2026. Details on other future U..S-bound Volkswagen EVs and where they will be produced have not yet been provided. As some readers may already know, GM previously outlined plans to release 30 new EVs globally between 2020 and 2025.
Lastly, Volkswagen said it will also use some of the $7.1 billion to set up local vehicle design and engineering hubs in North America. These hubs will be tasked with designing the body and interior of all Volkswagen products destined for the domestic markets by 2030. The automaker says this strategy reflects the company’s new-found emphasis on meeting American consumer demands with vehicles that are designed by and for North American consumers. This strategy will also see the automaker’s software subsidiary, Cariad SE, set up new domestic software units in Seattle, WA, and California’s Bay Area to strengthen the company’s digital footprint in North America, it said.
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Breaking out the spec sheets for a comparison.
Plus, a nationwide lease on all-electric off-road Pickup and SUV.
Extra comfort for rear-seated passengers.
Filings made in 24 countries, so far.
The sweepstakes closes on December 22nd and the drawing will take place on December 28th.
At a time of year when luxury car ATP usually rises.
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Hey look at the extended range ev vw has! when the electric goes out, jump on the bike! haha
Ever tried to pump Gasoline without electricty?
Every bought a Jerry can?
just joke about the picture guys, dont get defensive..
Will VW's BEV effort live up to VW's diesel standard of "excellence". Quote marks mean irony.
From what I can tell, they are overcompensating for that screw up. The quality of these cars is excellent even on the lower trim levels. PLUS they have a recharging network Electrify America that they have funded as a mandated penance for that mistake. PLUS the use of it is FREE for the first 3 years. 9Yes, that is correct. free fuel for 3 years) I feel for the Diesel guys but ID.4 buyers have been big beneficiaries.
After Diesel Gate and the Lopez Affair I have given up on VW.
I wonder if there are German auto enthusiast websites similar to GMA?
I wonder if there are Germans there posting hateful comments about VW "selling out" to the Americans, like so many here do about GM and China?
I wonder how many Americans that will buy these Mexican made EVs will know or even care?
Why don’t you go look instead of wondering? gm is an American company people want the vehicles made here if you can’t understand that then I don’t know what to tell you. The Germans make the cars in Germany and build plants here, so yes I would imagine if they decided to build a bunch of vehicles in china people would be upset. There is nothing hateful about people not wanting to support china, you must be really young because you aren’t remembering the fact the us tax payer saved this company. I would guess the fact peoples tax dollars saved gm and they decided to close more American plants after that to build in Mexico and china would upset people. But obviously from the way you see it everything is just fine. Enjoy your evening sir.
I have a ID.4. It is a great car. Had an Equinox (Made in Mexico) before we bought the ID.4 and would have bought another one if it had been electric. As soon as GM can make an equivalent car I will probably consider buying it.
The reality is the ID.4 is a really great car for a really good price. The range is 260 Miles (About 3 to 4 hours of driving) and we routinely make trips in excess of that distance. Fast charging is about 40 minutes which is just about right to eat lunch. And you can not beat the price and availability of fuel.
I just hope GM can provide the same affordability, quality and features in the immediate future. One of the things that makes it difficult for people like me to buy from GM is their insistence on introducing features at the higher trim levels.
I have a deposit in for an electric Silverado. Just hope they can get me a working truck that I can afford sometime soon. I sure am not going to pay 100K plus for a truck!
Wow! This will really rattle Tesla. VW has a cult following.
Interesting at this early stage in EV's that each EV carmaker is going to design and produce their own battery trays.
Presently, across the board, there are only a handful of independent vendors supplying automakers for auto glass, bearings, paints, seats, starters, alternators, seat belts, transmissions, tires, radiators, and even IC engine batteries.
Wonder when we are going to see four or so independent battery tray makers supplying all the EV makers? I bet these battery tray makers will be Asian.
Why is it that Foreign companies can invest in American production but American companies cant?
GM is in the process of building battery plants in Lordstown, Springhill, and Lansing. Ford is building battery plants in Kentucky and Tennessee and an electric pickup assembly plant in Tennessee. Chrysler opened a Detroit assembly plant in 2020. Tesla built a battery and electric motor plant near Reno in 2016 and is building a BEV assembly plant near Austin.
Glad to see that. Big change from their usual practice. Sadly Chrysler is not an American car company any more.
VCAT
Give it time, Chrysler will be unloaded and possibly back to American ownership. Chrysler has had a dramatic and tumultuous history. Gasping and burning through cash on several occasions. Two near deaths. RAM and JEEP are currently saving it. As we all know, Cummins saved Dodge Truck, now RAM. RAM is giving GM a run for the money.
Wonder who will pick up Tesla when Musk decides to unload it, as more EV players enter the market. ???