VW MOVING FORWARD WITH EV PRODUCTION IN CHINA AND US

VW is continuing its shift towards an electrified future with a couple of announcements regarding the production of electric vehicles.

The first is in regards to a new factory in China. The plant, a joint venture project with China’s SAIC located in Anting, near Shanghai, has been completed and is dedicated to the production of electric vehicles (EV) based on VW’s Modular Electric Drive system (MEB).

Full series production in the new factory is planned to commence in October 2020, with an annual capacity of 300,000 vehicles.

The first phase of pre-production in Anting will start with a China-specific ID. model of the VW Brand. The company says that in the future, the plant will manufacture MEB platform-based BEV models for various Volkswagen Group brands and to increase the local production in China up to 15 MEB models by 2025.

“The Volkswagen Group projects a total volume of 22 million all-electric cars worldwide by 2028, with more than 50 percent of that from China. The country plays a crucial part in our electrification strategy, which will pave the way to Volkswagen’s goal of becoming net carbon-neutral by 2050”, said Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG. “Together with the start of MEB production, we will launch the Volkswagen ID. family in China as well, a brand-new generation of fully electric and connected vehicles.”

Shortly after the announcement on its China plant, Volkswagen revealed that it has marked the start of construction for its electric vehicle production facility in the United States. Production at the Chattanooga, Tennessee, site is set to begin in 2022 and the plant will be VW’s North American assembly base for electric vehicles. The company also announced it intends to build a plant for the assembly of EV battery packs at the site. The company has invested about $800 million ($AU1.17 billion) in the facility where it currently builds the mid-size Atlas SUV and the Passat sedan at the factory.

“This is a big, big moment for this company,” said Scott Keogh, president and CEO of Volkswagen Group of America. “Expanding local production sets the foundation for our sustainable growth in the U.S. Electric vehicles are the future of mobility and Volkswagen will build them for millions of people.”

VW began production of the ID.3 electric car in November in Zwickau, Germany. By 2022, the company says that its MEB-based vehicles are to be produced at eight locations on three continents.

Source: Motor Trader E-Magazine (Dec 2019/Jan 2020)

19 Dec 2019