The Volkswagen Group simply introduced that it’s accelerating its investments in software program, electrical automobiles, and self-driving know-how and it’s not shying away from the truth that its aim is to catch as much as Tesla.

Herbert Diess, CEO of the Volkswagen Group, has been one of many executives from legacy automakers most real looking concerning the transition to electrical automobiles.

He has proven respect for Tesla’s lead available in the market and he has put particular plans in place for the German automaker to catch up, like setting up a new team for software and self-driving.

At this time, the automaker introduced a brand new accelerated funding with will increase in electrification, digital know-how, and extra:

The Volkswagen Group is urgent forward with its transformation right into a digital mobility firm. As determined in Planning Spherical 69, the Group will spend round EUR 73 billion on electrification, hybrid powertrains and digital know-how over the subsequent 5 years. This was introduced following immediately’s Supervisory Board assembly. Investments in Capex and R&D for future applied sciences will probably be raised to 50 p.c from 40 p.c of the Group’s whole investments of round EUR 150 billion. Investments in digitalization will double to EUR 27 billion by mid-decade, reflecting the Group’s sturdy give attention to build up software program capabilities. Roughly EUR 35 billion will probably be spent on battery-electric automobiles. An additional roughly EUR 11 billion has been earmarked for the event of hybrid automobiles of present fashions.

In feedback following the announcement, CEO Herbert Diess confirmed that these investments are aimed toward catching as much as Tesla:

“Sure, it’ll be a race with Tesla,”

With Fremont manufacturing unit producing over half one million automobiles per 12 months and Tesla ramping issues up at 3 different areas, the automaker is establishing a lead when it comes to manufacturing capability.

Herbert acknowledged that, however he believes Volkswagen has its personal benefits:

“They’re additionally ramping up quick. We now have extra completely different physique kinds, and with regards to a longtime dealership community, we should always have a bonus over Tesla,”

Volkswagen does profit from a a lot wider distribution community than Tesla, however the latter has the benefit of proudly owning every retailer as an alternative of counting on third-party sellers.

As for its manufacturing capability, Volkswagen is investing to transform many factories to electrical car manufacturing throughout its manufacturers.

Electrek’s Take

Once more, I consider Volkswagen is the legacy automaker most critical about electrification.

One of many largest indicators is how critical it’s about securing battery provide not solely by suppliers but additionally by direct partnerships and investments in corporations like NorthVolt and Quantumscape.

They’re additionally keen to transform gasoline automotive manufacturing capability to electrical car manufacturing capability.

Moreover, they’re taking a look at Tesla as instance and it’s exhausting to argue that Tesla just isn’t one of the best instance of success within the EV business.

In addition they have a number of model energy throughout a number of segments.

As for the dealership community, it might probably work for them or towards them. They should be sure that they’re on board with electrification and that promoting electrical automobiles on their tons is a precedence.

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