VW’s new direction: 2 to 3 million all-electric cars annually by 2025

By Bruce Brown June 17, 2016

vw electric car paris 300 mile range volkswagen e golf 1200x798 — Image used with permission by copyright holder

Is the new, virtue-signaling VW the same company that perpetrated Dieselgate? Some analysts and observers are skeptical of the new Volkswagen Group intiative, “Together — Strategy 2025,” according to Reuters. Skeptics are concerned that the announced plans may be just marketing talk to assure the public that VW got the message. Skeptics aside, however, VW has now publicly committed itself to building fully electric cars (not hybrids) to the tune of two to three million vehicles annually by 2025, according to Electrek.

“The announcements by VW look great on paper but no one can say for sure how demand for electric mobility will develop,” said German commercial banking analyst Sascha Gommel. “There are worthy elements among the plans but it’s probably also a marketing exercise by VW to tell the public that they have gotten the message,” continued Gommel.

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It’s been established that VW cheated with its diesel engine technology and profited from the false perception that its turbocharged diesel-powered cars hit the performance trifecta of power, economy, and environmental friendliness. The company is paying the price for its transgression and those payments will continue for some time. So the company’s forward-looking statements cannot escape being read through the lens of the diesel disgrace.

But it’s also the case that electric cars are the future. This week Germany let the world know that it means business in cleaning up at least the automobile portion of transportation’s share of CO2 pollution in the country when it announced that all new cars registered to drive on roads in Germany must be fully electric, with zero-emissions by 2030.

Mercedes-Benz also shared its ten-year game plan going forward this week, pledging support for continued development of all powertrain technologies (including internal combustion engines). The M-B plan, however, is easy to read as a gradual transition to fully electric vehicles. German auto manufacturers are on notice and are falling in line.

So VW is simply saying, “We’re in!” Anything less would be silly and no one would believe it. While previously Volkswagen Group CEO Matthias Müller talked about plug-in hybrids and battery-powered, all-electric cars, it’s now all about all-electric. The group is promising more than 30 new “purely battery-powered electric vehicles (BEVs)” by 2025 and has further stated the goal of ramping up to two to three million BEVs a year by the same year.

Battery power isn’t the only play in VW’s game plan. The company is also going to focus on self-driving cars and as well as ride-hailing and ride-sharing programs. Like Tesla and Daimler, VW is also planning a huge battery factory on the scale of Tesla’s, according to Electrek. And even as the company pursues these plans, VW Group management is also preparing for what will likely be an uncomfortable annual meeting next week.

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Contributing Editor

Bruce Brown Contributing Editor As a Contributing Editor to the Auto teams at Digital Trends and TheManual.com, Bruce…

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Scout Traveler and Scout Terra forge a new path for EVs

Scout Traveler and Scout Terra.

Electric vehicles are inseparable from newness, whether it’s new tech, new designs, or new companies like Rivian, Lucid, and Tesla. But the Volkswagen Group’s new EV-only brand also relies heavily on the past.

Unveiled Thursday, the Scout Traveler electric SUV and Scout Terra electric pickup truck are modern interpretations of the classic International Harvester Scout. Manufactured from 1961 to 1980, the original Scout helped popularize the idea of the rugged, off-road-capable utility vehicle, setting the stage for modern SUVs.

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Robotaxi aside, a $25,000 EV would be pointless, Tesla CEO says

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Enthusiasts expecting to one day put their hands on the steering wheel of a $25,000 Tesla EV may feel like they’ve been taken for a ride.
CEO Elon Musk has just put a serious damper on those expectations, saying that outside of the driverless Robotaxi recently unveiled by Tesla, a regular $25,000 model would be “pointless” and “silly.”
During a conference call with investors, Musk was asked to clarify whether such a model was in the works.
"Basically, having a regular $25K model is pointless,” Musk said. “It would be silly. It would be completely at odds with what we believe." Tesla, Musk continued, has “been very clear that the future is autonomous.”
On October 10, Tesla unveiled its much-awaited robotaxi, called the Cybercab, an autonomous-driving EV with no steering wheel or pedals. The company also unveiled the Robovan, a much larger autonomous vehicle expected to carry people or goods.
The automaker said the Cybercab is expected to be produced in 2026 and cost $30,000. Musk, meanwhile, said that it would be a $25,000 car without specifying if that price tag included federal tax credits.
Tesla’s ambiguity about an affordable entry-level model has been going on for years. In 2020, Musk signaled that a $25,000 Tesla would arrive within three years. It was later reported that Tesla had ditched the idea, instead favoring the development of a robotaxi.
Language within Tesla’s latest financial report still hints that new affordable Tesla models are on the way. But Musk’s latest comments are putting a floor on just how affordable these would be. So far, Tesla’s Model 3 Rear-Wheel-Drive remains the company’s cheapest model, with a base price of $38,990.
Some rival EV makers, meanwhile, are entering the affordable space more aggressively in the U.S.
General Motors has already put out its Chevy Equinox EV at a price of $27,500, including federal tax credits. Volkswagen America says it plans to release an under-$35,000 EV in the U.S. by 2027.

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Stellantis’ 2027 Dodge Charger Daytona might feature solid-state battery tech

Front three quarter view of the 2024 Dodge Charger Daytona sedan.

The battle to use cheaper, more efficient, and safer EV batteries is heating up among automakers. At the heart of this battle, the development of solid-state battery technology, an alternative to highly flammable and costly lithium batteries, is garnering more and more attention.For proof, Stellantis, the world’s fourth-largest automaker, is betting on the technology for its next generation of electric vehicles. The Netherlands-based company announced that it will launch a demonstration fleet of Dodge Charger Daytona EVs that will feature solid-state battery tech made by U.S. startup Factorial.The demo fleet, expected to launch by 2026, will provide a real-world assessment of Factorial’s technology. Factorial has been partnering with Stellantis since 2021 and is also partnering with the likes of Daimler AG’s Mercedes-Benz and Hyundai.Besides Dodge, the technology would eventually be deployed on the Stellantis STLA Large multi-energy platform, which includes brands such as Jeep, Chrysler, Alfa Romeo, and Maserati.Stellantis said that the integration of solid-state battery technology will yield “improved performance, longer driving ranges, and faster charging times in the coming years.”Factorial, meanwhile, says its technology provides higher energy density, reduced weight, improved performance, and the potential for further reduction in total vehicle cost over time. Stellantis, Daimler, and Hyundai aren’t the only ones to bet on solid-state battery tech. Toyota, the largest automaker in the world, has heavily invested in the technology. It also created a coalition with Nissan and Panasonic to boost its production in Japan. So far, making solid-state batteries has remained an expensive endeavor. But steps such as the Stellantis demo fleet and production at scale by the likes of Factorial are expected to improve manufacturing processes and costs over time.Other automakers, meanwhile, are working on ways to improve lithium batteries. Volkswagen, for one, is developing its own unified battery cell in several European plants as well as one plant in Ontario, Canada.