Volkswagen’s CFO Arno Antlitz mentioned Europe’s largest automaker has “all of the elements” for fulfillment because the US auto business shifts to electrical. Regardless of this, VW is seeing reluctance for its EVs in Europe and probably within the US as effectively.
Volkswagen gears up for North American EV transition
In an interview with Bloomberg Tv Wednesday, Antilitz defined VW has what it takes to develop within the US because the consumers transition to EVs.
Final April, Volkswagen introduced its first North American EV battery cell plant in St. Thomas, Ontario. The power will host six manufacturing blocks with as much as 90 GWh quantity. In response to VW, that’s sufficient for round 1 million EVs per 12 months.
The huge 370-acre manufacturing unit is concerning the measurement of 210 soccer fields. VW says the whole website will cowl round 850 soccer fields.
VW’s manufacturing unit plans to start producing sustainable unified cells in 2027. The cells will energy VW Group EVs, together with its new Scout model.
Volkswagen is reviving the Scout model right into a rugged all-electric automaker. The corporate will construct autos at its $2 billion facility in South Carolina.
As soon as manufacturing begins in 2026, VW expects to provide over 200,000 Scout EVs. Scout’s CEO, Scott Keogh, confirmed the corporate is on monitor to unveil its electrical truck and SUV later this 12 months.
After hiring former Jeep and RAM designer Chris Benjamin in Could, Keogh claimed his “thumbprints are throughout lots of the most beloved off-road autos.”
Scout’s compact four-wheel car was the primary actual competitors to the favored Jeep model within the 70’s and 80’s. Earlier than the Ford Bronco and Chevy Blazer hit the market, Scout’s autos formed lots of the autos we see within the US right this moment.
Regardless of the success, the model’s guardian firm confronted monetary troubles, resulting in a enterprise overhaul.
Volkswagen purchased the rights to Scout in 2021 after its trucking unit (Traton Group) merged with Navistar. The corporate confirmed it might resurrect the model into an off-road EV maker to compete within the US’s greatest segments.
Can VW compete because the US shifts to EVs?
After delivering over 394,000 electrical vehicles final 12 months, up 21% from 2022, VW appears to be like to regain momentum to compete with leaders like Tesla.
Though it is a document for Volkswagen, 21% YOY development is way behind most rivals. Tesla set a brand new document, delivering practically 1.81 million EVs final 12 months. Volvo bought over 113,000 EVs final 12 months. That’s up 70% in comparison with 2022 (66,749) and 16% of its complete gross sales.
Volkswagen’s EVs accounted for 8.3% of its complete gross sales final 12 months. That’s on the decrease finish of its 8% to 10% steerage (already down from 11%). Antlitz mentioned EV orders fell to 150,000 in Europe in October, 50% lower than the 300,000 in 2022.
The corporate’s monetary chief confirmed VW is seeing some reluctance in Europe and probably within the US, too.
VW lower shifts and laid off momentary staff final 12 months in Europe because it struggled to maintain up with EV leaders like Tesla and incoming Chinese language rivals like BYD.
With bigger autos, together with an electrical SUV and pickup, hitting the US market, VW hopes to regain momentum.
Electrek’s Take
VW lower EV costs earlier this week in Europe, hoping to compete with the surging Tesla. The corporate additionally fell behind Tesla in US market share for the primary time final 12 months.
Tesla secured 4.2% of the US auto market share final 12 months in comparison with Volkswagen’s 4.1%. Regardless of this, VW’s ID.4 did climb 4 spots for the fifth best-selling EV within the US final 12 months, behind the Mustang Mach-E, Chevy Bolt EV, Tesla, Mannequin 3, and Tesla Mannequin Y.
Will a rugged electrical pickup and SUV assist VW regain momentum because the US market shifts to EVs? That’s what the automaker is hoping for.
With plans to proceed investing round a 3rd of funding into ICE autos, it may set VW additional behind.
Whereas VW’s EV gross sales accounted for round 8% of complete quantity, many automakers are already attaining double-digit, or 100%, gross sales share.
