Key Take Aways From VW's Power Day Event

By cee Lippens March 16, 2021 199
More than one million people viewed VW's live event - most of them on Twitter. More than one million people viewed VW's live event - most of them on Twitter.

VW stock has risen 7.1% over the past 5 days and on the heels of VW’s Power Day event held Monday. The German automaker unveiled its most in-depth strategy in forging a path to selling millions of EVs in the not too distant future. The event, led by CEO Dr. Herbert Diess, was streamed around the globe via Twitter and VW’s site. The German automaker’s bold plans to become a world leader in EV sales focused on two issues on the forefront of buyers' minds, battery charge and charging stations.  

After the diesel-emissions cheating scandal, VW is in the process of fully reorganizing the company from the ground up. The automaker offered early retirement packages over the weekend leading up to the Power Day event as one of many cost cutting measures during the retooling. The automaker will also build 6 new battery factories in the EU to gain more control over its supply chain. “E-mobility has won the race,” Dr. Diess said during the webcast. “Our goal is to secure a pole position in the global scaling of batteries.”

Battery costs have emerged as a major issue in the electric-car race. VW unveiled plans for its new battery cell called the unified cell. The new design will allow VW to reduce costs for entry-level EVs by 50 percent and for its mainstream vehicles, up to 30 percent. The automaker showcased its method of recycling the united cell batteries, a process that VW claims reuses a whopping 95 percent of the battery. 

Also on the docket at the event was bidirectional charging. VW said that by 2022, its cars' batteries will be able to power electronics in your home, using a bidirectional wall box.

VW is electrifying the classics like the I.D Buzz

Diess and VW have big plans to tackle the second major issue for buyers, charging station accessblity. The company is committed to expanding charging stations across the world by installing 3,500 Electrify America fast chargers in the U.S. this year, increasing the number of chargers it operates by five times, to 18,000 in the EU and a major expansion in China with 17,000 stations by 2025. It will invest 400 million euros ($477 million) by 2025 to build out the much-needed charging infrastructure in the EU after the region overtook China in EV sales last year.

VW has its sights set on China with that country's open door policy and its 2020 mandate on automakers requiring that EVs make up 40% of all nationwide sales by 2030. MIT analysts project this move will expand the production of EVs and EV batteries enough to bring down the worldwide cost of both, so it's no surprise VW is focused on the Asian EV market. 

The Volkswagen Group has pledged to make its global business carbon neutral by 2050, and electric vehicles will help make that possible. By 2025, the Group plans to build about 1.5 million electric vehicles a year worldwide – including at its U.S. factory in Chattanooga. 

In the U.S., EVs have been limited either to specific states or to luxury vehicles. VW plans on changing that with the release of the Volkswagen ID.4, which will come with 3 free years of charging at Electrify America fast charging stations across the U.S. The ID 3 and 4 are the first EVs in a whole ID family that VW will release by 2025.

The  automaker's first-ever all-electric SUV will hit dealerships later this year. The ID.Crozz crossover SUV is said to have a top speed of more than 110 mph and a battery that can charge up to 80% in just 30 minutes. It is also expected to have a range of more than 300 miles. VW is electrifing some classics for old school enthusiasts, too. The electrified Volkswagen bus, the ID Buzz, hits the EU market in 2022.

 

 

 

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Last modified on Wednesday, 17 March 2021 11:45