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 theof electrical automobiles subsequent yr. They will probably be constructed on the , 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.
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, noting that the board “plans to make a decision on a production location for electric vehicles soon.” The purpose is to . As it strikes towards electrification, VW has additionally mentioned that its subsequent technology of internal-combustion engines .