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Released January 21, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Global investment by car makers in electric vehicles (EV) will top $300 billion in the next five to 10 years, led by Germany's Volkswagen (VW).
Volkswagen Group, which has 12 car brands under its control including Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda, is expected to spend $91 billion on electrifying vehicles with half of that investment expected to go to China, according to an analysis of public data collated by Reuters. The huge rise in investment in the sector is being driven in part by much stricter CO2 emissions rules for vehicles agreed by the European Union (EU) that will come into force in 2030. Volkswagen also is reeling from the "Dieselgate" emissions scandal that has cost the company billions of dollars in fines and legal settlements.
Industrial Info is tracking VW's planned overhaul of its Zwickau car-making facility to become the most effective electric vehicle production facility in Europe with an eventual target of producing 330,000 vehicles per year. The facility is being re-jigged to produce 1,500 electric vehicles per day by 2021. The company also is aiming to make EVs at its plants in Hanover and Emden.
VW is aiming to construct up to 15 million electric vehicles by 2025 in Europe, Asia and the U.S., including 50 pure electric and 30 hybrid electric models. The company eventually intends to offer electric versions of all its 300 vehicle models. VW has been working with China's largest automakers SAIC Motor and FAW Car for decades, and China is supporting the mass rollout of electric cars through a mix of incentives and restrictions on traditional combustion engines. The Chinese government expects to have 5 million electric cars on its roads by next year. Last year, around 1 million electric cars were sold in China.
"The future of Volkswagen will be decided in the Chinese market," said Herbert Diess, chief executive of VW, speaking to reporters in Beijing recently, and claimed that China will become "one of the automotive powerhouses in the world. What we find (in China) is really the right environment to develop the next generation of cars and we find the right skills, which we only partially have in Europe or other places. We have very clear policies established here in China. Policymakers and regulators are requiring a shift to electric vehicles."
Of the $300 billion in planned spending, German automobile companies account for more than $139 billion, followed by China with $57 billion and the U.S. with £39 billion, Japan on $24 billion and South Korea on $20 billion. Reuters said that "actual spending by vehicle manufacturers on research and development, engineering, production tooling and procurement likely will be much higher".
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Volkswagen Group, which has 12 car brands under its control including Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda, is expected to spend $91 billion on electrifying vehicles with half of that investment expected to go to China, according to an analysis of public data collated by Reuters. The huge rise in investment in the sector is being driven in part by much stricter CO2 emissions rules for vehicles agreed by the European Union (EU) that will come into force in 2030. Volkswagen also is reeling from the "Dieselgate" emissions scandal that has cost the company billions of dollars in fines and legal settlements.
Industrial Info is tracking VW's planned overhaul of its Zwickau car-making facility to become the most effective electric vehicle production facility in Europe with an eventual target of producing 330,000 vehicles per year. The facility is being re-jigged to produce 1,500 electric vehicles per day by 2021. The company also is aiming to make EVs at its plants in Hanover and Emden.
VW is aiming to construct up to 15 million electric vehicles by 2025 in Europe, Asia and the U.S., including 50 pure electric and 30 hybrid electric models. The company eventually intends to offer electric versions of all its 300 vehicle models. VW has been working with China's largest automakers SAIC Motor and FAW Car for decades, and China is supporting the mass rollout of electric cars through a mix of incentives and restrictions on traditional combustion engines. The Chinese government expects to have 5 million electric cars on its roads by next year. Last year, around 1 million electric cars were sold in China.
"The future of Volkswagen will be decided in the Chinese market," said Herbert Diess, chief executive of VW, speaking to reporters in Beijing recently, and claimed that China will become "one of the automotive powerhouses in the world. What we find (in China) is really the right environment to develop the next generation of cars and we find the right skills, which we only partially have in Europe or other places. We have very clear policies established here in China. Policymakers and regulators are requiring a shift to electric vehicles."
Of the $300 billion in planned spending, German automobile companies account for more than $139 billion, followed by China with $57 billion and the U.S. with £39 billion, Japan on $24 billion and South Korea on $20 billion. Reuters said that "actual spending by vehicle manufacturers on research and development, engineering, production tooling and procurement likely will be much higher".
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
