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VW to reduce model, engine lineup as it invests in EVs

As it ramps up manufacturing of electric cars on the way in which to a purpose of promoting 1 million EVs yearly by 2025, Volkswagen will dramatically simplify its internal-combustion automobile vary. On Thursday the automaker mentioned it will make investments 9 billion euros ($10.26 billion) in electrification from 2019 to 2023 — whereas chopping the variety of conventional engine and transmission choices by 1 / 4.

VW plans to launch the ID family of electrical automobiles subsequent yr. They will probably be constructed on the MEB modular platform, with VW saying at present it plans to provide 20 totally different electrical automobiles by 2025. In the primary full yr of manufacturing, VW expects to promote about 100,000 ID electrics.

Volkswagen MEB chassis

VW plans to promote a wide range of EVs primarily based on this MEB chassis.


Volkswagen

At the identical time, VW plans to simplify manufacturing (and make it extra worthwhile) by constructing fewer automobiles with fewer forms of powertrains. “Complexity is too high, so we need to reduce that to boost productivity at our plants,” VW passenger automobiles chief working officer Ralf Brandstätter mentioned in an announcement.

VW will simplify its portfolio and provide “a customized product range” — in different phrases, fewer fashions general. And slow-selling engine/transmission combos will probably be lower, with the general purpose of decreasing the variety of powertrain combos by 25 p.c. “Low-demand variants will be discontinued and there will be intelligent equipment packages,” Brandstätter mentioned.

As an instance, the automaker famous that the eighth-generation Golf will provide 40 p.c fewer wheel designs and 60 p.c fewer steering-wheel choices than at present’s Golf. As one other instance of simplification, Automotive News reports that entry-level engines would now not provide automated transmission or all-wheel drive in Europe.

Those adjustments, as properly as a deliberate 30 p.c improve in manufacturing unit effectivity, are meant to assist VW finance its transition to constructing extra electrical automobiles. The automaker mentioned it hopes to increase its revenue from four to 6 p.c by 2022.

VW additionally reiterated that it plans to open a North American plant to build electric cars, noting that the board “plans to make a decision on a production location for electric vehicles soon.” The purpose is to build EVs at 16 plants globally by 2022. As it strikes towards electrification, VW has additionally mentioned that its subsequent technology of internal-combustion engines will be its last.


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