VW Shifts Focus to Hybrids, EVs

Volkswagen AG says it is "repositioning itself for the future" with a greater focus on plug-in hybrid and all-electric vehicles. The strategy includes developing a new modular electric toolkit, adapting its core "MQB" front-wheel-drive platform for plug-in hybrids and introducing an all-electric Phaeton flagship sedan.

The carmaker also vows to accelerate the use of other "forward technologies." This involves the development and launch of advanced driver-assistance and connected vehicle features, including autonomous-driving systems.

VW's new modular electric architecture, dubbed MEB, will be used for a wide range of passenger and light commercial vehicles encompassing all body structures and vehicle types across multiple VW Group brands, according to the company. It says the standardized system will leverage synergies from current electrified programs. The goal is to launch new models with an all-electric driving range of 250 km to 500 km (155-310 miles).

VW says it also is upgrading its MQB platform, which is expected to be used for as many as 14 models with an estimated annual production of 4 million vehicles by the end of 2016. The plan includes using the architecture for plug-in hybrid vehicles with a range of 300 km (186 miles).

Other powertrain technologies also are planned, including a new 48-volt mild hybrid system and more efficient gasoline, diesel and compressed natural gas engines.

VW's next-generation Phaeton luxury sedan is being "redefined" to include an all-electric drivetrain with long-distance capability, connectivity and next-generation assistance systems, according to the company. It says the vehicle also will sport an "emotional" design.

Media reports say the new Phaeton will be introduced by 2020 and share a platform, battery and other components with the upcoming Audi Q6 etron, which was unveiled in concept form at last month's Frankfurt auto show. Reports earlier this summer suggested VW was delaying the Phaeton to find ways to cut costs on manufacturing and materials.

VW offered no timeframe for the rollout of the electric MEB and upgraded MQB programs.