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2023: Employee layoffs due to low demand for the company's electric vehicles and cuts to state subsidies
At the end of June 2023, it became known that the German concern Volkswagen decided to reduce the production of electric vehicles due to low demand. In addition, the automaker has planned the layoffs of hundreds of employees.
According to the Nordwest-Zeitung newspaper, Volkswagen is forced to cancel late work shifts at the Emden plant, where ID.4 crossovers and ID.7 sedans are produced. The reason is that the capacity of the enterprise is underloaded, and orders for electrical models are reduced. It is estimated that the demand for Volkswagen electric vehicles manufactured at the Emden plant turned out to be about 30% less than the German manufacturer itself expected.
In addition, it is noted that about 300 out of 1,500 temporary workers at the Emden plant will be reduced. Layoffs will begin in August 2023. The concern has already begun to notify employees that they need to look for a new place of work.
 | The reduction in the number of temporary workers and the abolition of production shifts indicate that Volkswagen does not expect an improvement in the short term, said Stifel analyst Daniel Schwarz. |  |
Some experts also say that Volkswagen's decision indicates that the European electric vehicle market is not developing quickly enough. And therefore, sales of new models planned for release may not meet manufacturers' expectations. At the same time, it is noted that the demand for cars with internal combustion engines is not decreasing so quickly. Volkswagen, in particular, plans to keep the production volume of the Passat model at the Emden facility at the same level. Overall, Volkswagen expected the demand situation for electric vehicles to stabilize during 2023.[1]
But in September 2023, it was announced that Volkswagen AG was cutting production of electric vehicles at two German plants as demand in Europe fell and government subsidies fell.
2020: Volkswagen unveils its first electric crossover
In early March 2020, Volkswagen introduced the first electric crossover in its lineup. We are talking about the ID.4 car, created on the basis of the ID concept shown in 2017. Crozz. Read more here.
2019
Closure of electric vehicle charging stations in US due to safety concerns
Electrify America, formed by Volkswagen Group for a network of electric vehicle charging stations in the United States, closed most stations due to safety concerns. This was reported in January by the press service of Electrify America.
The press release indicates that the closure of stations with a capacity of 150 kW to 350 kW is caused by potential problems with liquid cooling systems supplied by HUBER + SUHNER.
Earlier it became known that a short circuit occurred at a test site in Germany caused by the use of the HUBER + SUHNER cooling charging cable. The company recommended that all customers close charging stations before the safety issue is resolved.
2018
Announcement of a portable charging station for electric vehicles that does not need an outlet
On December 27, 2018, the German automaker Volkswagen introduced a portable charging station for electric vehicles, which is built on the principle of power bank - wireless external batteries for charging smartphones and other gadgets.
The company showed a device that can be installed anywhere, for example, in city parking lots, near company offices or at large-scale events. Although the manufacturer did not name the mass of equipment, most likely it will weigh a lot and it can only be lifted using a loader - not by hand.
The station does not need an external power supply - it is equipped with a 360 kW battery pack, from which you can charge up to 15 electric cars, and four of them can be charged simultaneously. It is claimed that replenishing the energy reserve in the battery of one car takes about 17 minutes.
After the charge level in the Volkswagen device drops below 20%, the operator of this system is sent a notification about the need to pick up the terminal for recharging and install another fully charged device in its place.
If desired, the equipment can be connected to an AC source with a power of up to 30 kW, and then the station will be able to operate without a time limit. It is stated that the development of the German automaker will also be able to receive and preserve wind and solar energy.[2]
| | Mobile charging stations are a crucial step towards an efficient network of charging points. They can be installed anywhere as needed - with or without a power supply, said Thomas Schmall, head of Volkswagen's component division. | |
The start of installation of such charging solutions for electric vehicles is scheduled for the first half of 2019. First, they will appear in Wolfsburg, Germany, and if the pilot is successful, it will become massive.
Order batteries for electric vehicles worth €20bn
Volkswagen has ordered €20bn worth of electric vehicle batteries. This was stated by the CEO of the company Matthias Mueller (Matthias Mueller) in March 2018.
According to him, the German auto giant has entered into agreements with suppliers of batteries and related technologies from Europe and China, where the company sells 80% of its machines. In the future, it is planned to attract a contractor from North America.
Batteries ordered by Volkswagen will be supplied by LG Chem, Samsung SDI and Contemporary Amperex Technology. At the same time, the automaker does not plan to manufacture batteries itself.
| | Gaining experience and mastering technology does not mean that we want to start full-scale battery production on our own. Others can do it better than us, "Mueller reported. | |
According to Reuters, before Volkswagen was at the center of the scandal with the falsification of the volume of harmful emissions of diesel engines in September 2015, the company was in no hurry to develop the direction of electric vehicles. But the "dieselgate" has triggered a strategic shift in Volkswagen's work, especially as technological battery improvements and the global fight against pollution are putting pressure on carmakers to aim for net-zero emissions of their vehicles.
Matthias Muller said that by the end of 2022, the production of electric vehicles will be mastered at 16 Volkswagen factories around the world, while in March 2018 we are talking about three factories.
| | All these months we have been on the sidelines of technology, but now we will spend a lot of effort and resources on the development of new electric cars, - said the head of Volkswagen. | |
He also added that after expanding the production of electric vehicles, the company will start producing one new electric car every month. The goal of the German automaker is to produce 80 models of electric vehicles by 2025, and by 2030 each of the company's 300 models will have to have an electric motor version.[3]
2017
$40 billion investment in electric vehicles, self-driving cars and digital services
In November 2017, Volkswagen approved a budget of 34 billion euros (about $40 billion) for the development of electric vehicles, unmanned vehicles and digital services. Thanks to these investments, the German automaker wants to become the world leader in the electric vehicle market, reports Reuters news agency.
These funds will be spent until 2022. Volkswagen's total investment in projects related to electric transport will reach 72 billion euros by this time.
| | With the approved plan, we are laying the groundwork to make Volkswagen one of the leading players in the electric vehicle market by 2025... The car is currently being reinvented. That is why we are purposefully investing in this industry, "said Matthias Mueller, CEO of the Car Washing Corporation, following a meeting of the Volkswagen Supervisory Board in November 2017. | |
Volkswagen will maintain cost controls to continue investing in new technology after paying an estimated €17bn fine for settling a car emissions data fraud scandal, he said.
The company clarifies that about 14 billion euros are planned to be invested in Volkswagen factories in Germany. In particular, one of the key measures will be the transformation of the enterprise in the city of Zwickau: it is assumed that it will be transferred completely to the production of electric vehicles. Investments in this factory are estimated at 1 billion euros.
Volkswagen is going to fully "electrify" each model by 2030 (by 2017 there are about 300 of them, including Skoda, Audi, Porsche brands), which is part of the company's range. By 2025, the automaker expects to produce a total of 1 million electric cars.[4]
Investment plans
The Volkswagen carmaker announced in September 2017 that by 2030 the entire line of its cars, numbering about 300 models, will be available to buyers in a configuration with an electric motor. To achieve this goal, said the head of Volkswagen Group Matthias Muller, the concern will double investments in the creation of electric vehicles - up to 20 billion euros[5]
In addition to equipping existing models with electric motors, Volkswagen plans to introduce 80 new electric vehicles in 2025. Volkswagen intends to spend about 50 billion euros to buy batteries for its cars from third-party suppliers in the next few years.
In the spring of 2017, it became known that the German VW will allocate €9 billion for technologies related to electric cars. Such a budget "Volkswagen Group" laid down for the development of electric cars in the next 5 years from 2017 to 2022[6] of[7].
Five years earlier, in the period from 2011 to 2016, the injection of the Volkswagen automaker into the industry of production and development of electric cars amounted to about €3 billion. Now the board of the company is betting on biosimilars.
Electric vehicle charging robots at stations
In July 2017, Volkswagen announced plans to use robots to service electric vehicles, including for automatic charging at special stations, Reuters reports.
| | The driver only needs to place an electric car in a specially equipped parking space. The robot will take care of connecting the charging cable, Volkswagen said in a statement. | |
Volkswagen is implementing a project to introduce robots into the automotive industry together with Kuka, which specializes in such equipment. In addition to electric cars, it is planned to use robots in self-driving cars. Details about such technologies have not been disclosed.
| | In the future, robots will help people perform many routine tasks, says the head of Kuka, Till Reuter. - At the same time, everyday life will become unthinkable without self-driving. We intend to work together on innovative concepts to create such a future. | |
Volkswagen is among the automakers actively developing green vehicles. The German giant expects to produce a total of about 30 cars with electric motors by 2025. The company presented the concept of a new electric car in early July 2017.
We are talking about a three-door Volkswagen Gen.E Concept hatchback, made in an aerodynamic sculptural body with an increased windshield area, a modified roof line and special cast discs. The electric car is powered by a high-tech battery based on advanced lithium-ion cells, which provide the car with a ride range on a single charge of over 400 km. Under the hood is an optimized electric motor, but its characteristics have not been announced.
At the end of May 2017, the State Committee for Development and Reform of China approved the creation of a joint venture for the production of electric vehicles by Volkswagen and Anhui Jianghuai Automobile Group (JAC Motors). The total investment in the new company will exceed 5 billion yuan ($726 million).[8]
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