VW Launches €1.4 Billion Electric Truck, Bus Program

Volkswagen AG’s truck and bus unit will spend €1.4 billion ($1.7 billion) over the next two years to broaden its array of “green” powertrains and other technologies for commercial trucks and buses.

Andreas Renschler, who heads the unit, tells Bloomberg News that the initiative will focus on electric powertrains, autonomous driving systems and cloud-based connectivity software.

The group’s overall aim is to provide a broad range of propulsion, fuel and operating options to fit the needs of local markets, Renschler says. The truck and bus unit’s work on self-driving systems will target closed-route applications such as runway snow removal vehicles and airport and parking lot shuttles.

Renschler notes that VW’s Scania and MAN commercial vehicle brands will begin delivering all-electric buses to several European cities in 2018. The company’s Navistar International commercial truck affiliate also will adopt some of the technologies being developed under the new program.

Renschler tells Bloomberg that electric city buses are now equal in price to conventionally powered vehicles. He adds that electric local-delivery trucks are likely to achieve breakeven as early as 2020. But he doesn’t expect battery-powered long-haul heavy trucks to do the same for several years thereafter.