Volkswagen has selected partners to provide battery cells and related technology worth around €20bn, in a shift towards zero-emission vehicles.
The company, which is Europe’s largest automobile manufacturer, has embraced the shift towards zero-emission vehicles in recent years. Since it emerged that the company had installed software into its diesel vehicles which would allow them to cheat emissions tests, Volkswagen has renewed its commitment to helping to meet environmental targets.
In addition to its new commitment to battery cells, Volkswagen announced plans to expand the production of electric vehicles to 16 factories worldwide before the end of 2022, with a goal of launching 80 new models of electric car across its group by 2025.
What does the decision mean for Volkswagen?
Ultimately, VW intends to offer electric versions of all 300 of its group’s cars by 2030, which represents an ambitious shift towards zero-emission vehicles for the company. The Volkswagen group also includes brands such as Audi and Porsche.
In pursuit of the goals agreed under the Paris Climate Agreement, many European countries – including the UK and France – have announced plans to phase out diesel vehicles by 2040, and in some cases even sooner for public transport. This has encouraged many car manufacturers to refocus their efforts towards developing vehicles powered by alternative fuels.
The suppliers for battery cell technology that the company has chosen will support its operations in Europe and China, while the company is yet to make a decision on a supplier for North America. In total, these deals are expected to be worth more than €50bn.
What did VW say about the deal?
At Volkswagen’s annual conference, chief executive Matthias Mueller said that efforts to transform the culture at the company away from that which led to the diesel emissions scandal, and ensuring VW is part of the solution, are the only ways to ensure the company remains sustainable.
He said: “Doing this is the only path to being successful. These are not wellness topics, things that are nice to have – they are concrete and affect our financial results, our rating and our ability to attract future talent.”
