Volkswagen is pressing ahead with gearing its plants to electric mobility. Volkswagen is expanding its global production network for electric vehicles by starting to make the all-electric ID.4 in Emden. Emden is now the second site for electric vehicles in Germany following Zwickau and also joins the Chinese plants in Anting and Foshan. Chattanooga (ID.4) and Hanover will also commence production this year. As a result, Volkswagen is creating the conditions in 2022 for building 1.2 million all-electric vehicles a year based on the MEB in the future at its sites in Europe, the U.S. and China. Volkswagen has invested around one million euros in converting the Emden plant with its 8,000 employees. Emden is thus the first high-tech site for electric mobility in Lower Saxony. The Volkswagen Group will invest a total of 21 billion euros in Lower Saxony up to 2026 and make the federal state Germany’s center for electric mobility.

“Rapid expansion of production capacities for our successful ID.4 model is a key component of our ACCELERATE strategy. It helps us accelerate the transformation to zero-carbon mobility and create further capacities to meet the high demand for electric vehicles,” said Volkswagen CEO Ralf Brandstätter. “With our clear commitment to the site, we aim to show that cost-effectiveness and competitiveness are not only possible in the region, but that we can even enhance them lastingly.”

Lower Saxony becomes the center for electric mobility
“Volkswagen is making Lower Saxony, where we have 130,000 employees, Germany’s center for electric mobility,” said Ralf Brandstätter. Apart from the ID.4, Emden will make another model – the AERO B – next year. In addition, production of the iconic ID. Buzz will commence this year at Volkswagen Commercial Vehicles in Hanover. It will be joined from 2023 on by the ID.3 made in Wolfsburg, while a further electric vehicle – the Trinity – will then roll off the assembly line at the location starting in 2026. The Group is also investing in Braunschweig, Salzgitter and Kassel, among other things in further expansion of the existing MEB production of battery systems, rotors/stators and electric motors. The Salzgitter location is being expanded further into a European battery hub. Investments in Lower Saxony will add up to 21 billion euros overall by 2026 – an unprecedented level, also by international standards.

Gerardo Scarpino, Deputy Chairman of the General Works Council : “Electric mobility is no longer a distant goal – it’s becoming a reality for our colleagues at more and more plants here. Yet it wasn’t a foregone conclusion that electric mobility would be rolled out comprehensively at our German sites. However, the codetermination bodies campaigned for it and concluded site agreements in good time – and this success proves us right. In particular, our employees are showing that they are highly motivated and flexible in helping to accomplish the conversion and ramp-up work. Their efforts also deserve to be honored today.”

Christian Vollmer, member of the Volkswagen Brand Board of Management responsible for Production and Logistics said: “The consistent expansion of the production network is key for the success of our global electric offensive. With the knowledge and experience gained in Emden, we will be able to drive the transformation of other plants quickly and efficiently. Innovative production concepts and highly qualified teams form the basis for this approach. This is how we forge ahead with our ACCELERATE strategy – worldwide, in Germany and right here, in Lower Saxony.

Uwe Schwartz, manager of the Emden plant: “Start of production of the first all-electric model at the site is an unparalleled milestone for the whole Emden team. We have prepared intensively to make the ID.4 in the past two years and have eagerly awaited this day. Seeing the ID.4 now come off the line in Emden fills us with pride. We’re proud that Emden is doing its bit to accelerate Volkswagen’s electrification strategy. With this magnificent team performance, we will continue and grow our long and successful tradition of production here.”

Manfred Wulff, Chairman of the Works Council at the Emden plant: “The Works Council campaigned strongly for investing in electric mobility in Emden. Then we in East Frisia proved that Volkswagen can convert a factory to electric mobility in the space of two years. The ID.4 marks the successful start of electric mobility here. The AERO B saloon and the Variant will follow next year and the year after next. Emden is now a leading player in electric mobility. As a result, we’ll secure jobs in our region lastingly with three all-electric vehicles made in East Frisia. My thanks go to the great team that prepared and implemented everything successfully.”

The ID.4’s start-up is on schedule, despite the global challenges during the two-year conversion phase. Emden’s maximum production capacity at the end of 2022 will be 800 units per working day, depending on the supply situation.

Six new production halls and five new conveyor bridges and logistics buildings over a total area of some 125,000 square meters have been created as part of the plant’s conversion. A foundation for successful transformation is the qualification concept at Emden, which comprises training near to the production line and virtual training, as well as sharing of knowledge and experience with Volkswagen’s Zwickau site. More than 400 employees from Emden have been assigned to Zwickau since early 2020 in order to prepare for producing electric vehicles.

ID.4 is now made at four sites – High demand – Additional production capacities
The ID.4 is now produced at the Emden and Zwickau sites and at the Anting and Foshan plants in China. And expansion continues: Production for the U.S. market will start in Chattanooga in the fall. The global production network will then grow to five locations. Following its market launch in early 2021, the ID.4 has quickly become a success: In the first quarter of 2022 alone, Volkswagen delivered more than 30,000 units – meaning every one-in-two all-electric vehicles from Volkswagen is an ID.4. 163,000 units have been delivered since its launch, making the ID.4 the Volkswagen brand’s and the Group’s best-selling e-vehicle. In many markets, the electric SUV jumped to the top of the sales charts in its very first year and was the best-selling all-electric vehicle in countries such as Denmark, Finland, Ireland or Sweden. There are currently around 73,000 orders on hand worldwide for the successful model.

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2022. In the first three months, the operating profit before special items increased to EUR 513 million (Q1 2021: EUR 490 million). Sales revenue came in at just under EUR 15 billion (Q1 2021: EUR 17.6 billion) due to an optimized model and price policy, while the number of deliveries in the same period came in at around one million vehicles (Q1 2021: 1.36 million) due to the war in Ukraine, the global semiconductor shortage and the most recent coronavirus measures in China. In contrast, the operating return on sales before special items rose to 3.4 percent (Q1 2021: 2.8 percent).

“We further improved our economic efficiency in a difficult environment. This underscores that Volkswagen has chosen the right path for achieving a lasting improvement in its competitiveness and profitability with the ACCELERATE strategy. We have therefore laid a very solid foundation for the accelerated transformation to zero-carbon and fully networked mobility,” says Volkswagen CEO Ralf Brandstätter.

Continued focus on cost efficiency – outlook for 2023 confirmed

Volkswagen is continuing to work hard on improving its cost efficiency – for example on further reducing its fixed costs and overheads – in order to strengthen its competitiveness long term. “We are currently facing different challenges such as the geopolitical uncertainty, commodity and energy price hikes and the effects of the pandemic in China. We’re working to counter these risks with our cost-cutting measures and by improving the quality of our operating result in specific areas. However, we’re sticking to our target of an operating return on sales of 6 percent in 2023,” said Volkswagen CFO Alexander Seitz. This forecast is contingent on how the war in Ukraine evolves and in particular on its impact on the global economy and thus on the Volkswagen brand’s business activities. Customer demand remains high for both ICE and electric models.

Further sharp rise in unit sales of all-electric models

53,400 all-electric vehicles (BEVs) were delivered in the first three months (+74 percent). The fully electric ID.4 plays a key role in this. More than one in two electric vehicles delivered was an ID.4, of which 30,300 units were handed over to customers. Volkswagen is now pressing ahead with the expansion of production capacity for its best-selling electric car. On May 20, 2022, the plant in Emden will start series production of the ID.4, creating additional capacity for the successful model. The ID.4 will also roll off the production line in Chattanooga in the United States in the second half of the year. The models of the entire ID. family continue to enjoy buoyant demand, with over 120,000 customer orders being placed for the ID. models in Europe alone.

The backlog of orders across all drive types reached a historic high of more than 670,000 vehicles in Europe alone. The Group is therefore working hard on keeping delivery times for customers as low as possible and processing the large backlog of orders swiftly.

Article source: www.volkswagen-newsroom.com

Volkswagen Group will launch an all-electric pick-up and rugged SUV in the United States. The decision of the Board of Management was confirmed today by the Supervisory Board of the Volkswagen Group.

The vehicles will be designed, engineered, and manufactured in the U.S. for American customers. To this end, a separate, independent company will be established in the U.S. this year as the Volkswagen Group moves the strong iconic U.S.-brand Scout into the electric vehicle space. The first prototypes are to be unveiled next year, and production is scheduled to start in 2026. The electrified Scout brand will be built upon a new technical platform concept which brings new pickup and RUV credibility beyond the existing Volkswagen Group portfolio.

Herbert Diess, CEO Volkswagen AG: “After Volkswagen’s successful turnaround in the U.S., we are now taking the opportunity to further strengthen our position in one of the most significant growth markets for EVs. Electrification provides a historic opportunity to enter the highly attractive pick-up and R-SUV segment as a Group, underscoring our ambition to become a relevant player in the U.S. market.”

Success in the R-SUV & pick-up segments is a key lever to increasing profitability in the U.S. and achieving the targeted market share of ten percent. The Volkswagen Group is thus continuing to systematically expand its presence in one of the most significant global growth markets.

Arno Antlitz, CFO Volkswagen AG: “The company we will establish this year will be a separate unit and brand within the Volkswagen Group to be managed independently. This aligns with the new Group steering model - small units that act agilely and have access to our tech platforms to leverage synergies.”

Article source: www.volkswagen-newsroom.com

The Volkswagen Group is launching a major quality offensive in terms of charging and energy. The volume brands Volkswagen, Cupra/Seat and ŠKODA are now offering simple tariffs for public charging, allowing customers to charge at fixed kilowatt-hour prices throughout the entire charging network. With this step, the company creates optimal cost transparency. At the same time, the Volkswagen Group is further expanding its European charging network: E-car drivers can now use more than 310,000 charging points throughout Europe, including around 10,000 fast chargers at over 3,000 locations. Volkswagen is also planning a comprehensive partner program to increase the comfort at charging parks.

"In the electric age, charging and energy are of the utmost strategic importance. For example, for many customers who consider an e-car, a home charging option is still a must. We cannot be satisfied with that limitation. With NEW AUTO, we have therefore taken these issues into our own hands and are ourselves investing in comfort, quality and expansion of the charging network on behalf of our customers. This is a strong team effort by our volume brands and the Group! Our goal is to get everyone excited about e-mobility," says Thomas Schmall, Volkswagen Group Board Member for Technology and CEO of Volkswagen Group Components.

Hildegard Wortmann, Group Board Member for Sales, adds: "As part of the NEW AUTO strategy, we are consistently working with our Group brands towards the goal of becoming the market leader in e-mobility. To this end, we are building a complete ecosystem for our customers, which also includes the key topic of charging. We want to offer them a fully integrated, comfortable and all-round positive charging experience that they won't find anywhere else."

In the future, customers will have the choice between three basic tariffs, each with fixed prices per kilowatt hour charged. The new tariffs apply to customers of We Charge (Volkswagen), Powerpass (ŠKODA), Easy Charging (SEAT/CUPRA) and Elli and offer top conditions for Ionity fast chargers, among other benefits. Volkswagen is thus following the wishes of our customers who are clearly in favour of transparent fixed prices. Depending on the country, prices can be different, but always follow the same logic. Elli, our in-house brand, which is responsible for all activities in the Group around the topic of charging & energy is the backbone of the offer.

More convenience through Plug&Charge and "Selected Partner" program

The quality offensive also includes a "Selected Partner" program together with charging park operators. In the future, particularly convenient charging stations will be highlighted in the e-cars navigation system and drivers will be offered the option of choosing to drive there. The quality criteria will include reliability, weather protection and if there is a catering option. This means that customers will be able to target charging stations with a canopy and coffee offering. The program is scheduled to start later this year.

Another component of the quality offensive is the market launch of Plug&Charge. The function will be activated from the middle of the year via a software update in all e-cars of the volume brands based on the MEB architecture. The vehicle identifies itself at the corresponding charging stations using the ISO 15118 standard and automatically starts the charging process. Plug&Charge is supported by IONITY, Aral/bp, E.ON and Iberdrola, among others. Other partners are already preparing to join the offer.

"We want to offer our customers an optimal charging experience and make the e-car an uncompromisingly first-time vehicle choice. For this reason, we are emphatically addressing the issues of price transparency, network expansion and charging comfort. With the "Selected Partner" program, we will offer e-car drivers a quick and clear overview of the best charging options on their route. This will bring a new quality dynamic to the expansion of the charging network," says Elke Temme, CEO Volkswagen Group Charging GmbH (Elli) and Senior Vice President Charging & Energy Volkswagen Group Components.

NEW AUTO: Greatest commitment of the automotive industry

With NEW AUTO, the Volkswagen Group has made charging and energy its core business. Like no other car manufacturer, the company is investing in the development of an open fast-charging network worldwide. By 2025, around 45,000 High Power Charging (HPC) points are planned in Europe, China and the USA together with partners. The product range also includes the entire range of charging solutions for private customers and companies – from the company's own wallbox and flexible fast charging station to charging services and innovative, smart green electricity tariffs. In the next step, Volkswagen will anchor the electric car as a mobile power bank in the energy system creating additional added value for e-car customers.

Article source: www.volkswagen-newsroom.com