Mexican Media Brands
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
#hybrid #economics
Share
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
Diess doesn’t offer a new cost figure. But he tells employees the higher cost reflects VW’s need to catch up with progress made by its competitors.
Diess says VW must further curtail expenses and boost its profitability. He sets the minimum margin at 4%, adding that 5%-6% would enable future investments and 7%-8% would make the company “crisis-ready.”
VW isn’t alone in adjusting its EV budget and warning about the impact on bottom-line profits. Bloomberg News notes that Daimler AG has cautioned that the €10 billion it originally earmarked for electrification won’t pay for its goal of introducing 10 all-electric models by 2022.
RELATED CONTENT
-
Chevy Develops eCOPO Camaro: The Fast and the Electric
The notion that electric vehicles were the sort of thing that well-meaning professors who wear tweed jackets with elbow patches drove in order to help save the environment was pretty much annihilated when Tesla added the Ludicrous+ mode to the Model S which propelled the vehicle from 0 to 60 mph in less than 3 seconds.
-
Internal Combustion Engines’ Continued Domination (?)
According to a new research study by Deutsche Bank, “PCOT III: Revisiting the Outlook for Powertrain Technology” (that’s “Pricing the Car of Tomorrow”), to twist a phrase from Mark Twain, it seems that the reports of the internal combustion engine’s eminent death are greatly exaggerated.
-
GAC, CATL Partner on Two Battery Ventures
Two new battery ventures are being formed in China by domestic carmaker Guangzhou Automobile Group Ltd. and battery giant Contemporary Amperex Technology Ltd.