VW chooses battery supplier

VW chooses battery supplier

Andreas Cremer

Volkswagen has picked partners to provide battery cells and related technology worth around €20bn for its growing electric car programme, adding further pressure on US pioneer Tesla.

Until its “dieselgate” emissions scandal was revealed two and a half years ago, Europe’s largest carmaker had been slow to embrace electric cars.

But the fraud prompted a strategic shift, while advances in batteries and a global fight against pollution are raising pressure on carmakers to adopt zero-emission alternatives.

Volkswagen (VW) said it had secured battery technology deliveries for Europe and China, where it sells 80% of its vehicles, and will select a supplier for North America soon.

While Tesla’s much-anticipated Model 3 sedan has already missed some key production targets, VW plans to expand assembly of zero-emission cars to 16 plants globally through the end of 2022 from three at present.

We have pulled out all the stops over the past months to implement the Roadmap E swiftly and resolutely,” said chief executive Matthias Mueller, referring to the electric vehicle programme.

VW’s emissions scandal, new Chinese quotas for electric cars and tightening rules on carbon dioxide (CO2) emissions in Europe are causing carmakers to focus on green cars and self-driving technology.

VW has a goal to sell three million electric cars per year across the group by 2025 and to offer an electric version of each of the group’s 300 models by 2030.

LG Chem, Samsung and Chinese battery maker Contemporary Amperex Technology (CATL) will deliver batteries to VW, which has no plans to start producing powerpacks by itself, said Mr Mueller.

Building up expertise and mastering the technology does not necessarily imply that we want to start large-scale assembly of batteries ourselves,” said VW’s chief executive. “Others can do it better than we can.

Although grappling with billions of euros in costs and fines for dieselgate, VW has pledged to spend €34bn on electric vehicles, autonomous driving and new mobility services by the end of 2022, one of the most ambitious plans in the industry.

Separately, the German carmaker reiterated guidance for higher vehicle sales and revenue this year and for a group operating margin of 6.5%-7.5% after 7.4% last year.

Reuters

More in this Section

Online tutoring service aiming to help families who can't afford grinds to scale up operationsOnline tutoring service aiming to help families who can't afford grinds to scale up operations

Protesters climb onto North Sea oil platformsProtesters climb onto North Sea oil platforms

German exports to UK drop again in first seven months of 2019German exports to UK drop again in first seven months of 2019

Businesses on both sides of Irish border ‘already affected by Brexit’Businesses on both sides of Irish border ‘already affected by Brexit’


Lifestyle

Helen O’Callaghan says we are the least strict in all of Europe.Praise over punishment: Irish parents least strict in Europe - study

Kya deLongchamps detects a hint of rebellion behind the ritual of afternoon tea.Vintage View: English tradition of afternoon tea won't exit with Brexit

Friends and Young Offenders actors Shane Casey and Dominic MacHale speak to Pat Fitzpatrick about struggling to make it but why they are not seeking out fame.‘I was down to a euro’ - The Young Offenders actors tell of struggle to make it in acting

Gerry Fitzgerald runs Bandon Books Plus in Riverview Shopping Centre, Bandon, Co Cork.We Sell Books: Turning over a new leaf from bank to bookshop in Bandon

More From The Irish Examiner