VW will invest $7.1 billion in its North American production capacity

Volkswagen’s electrification efforts in North America will obtain a further $7.1 billion funding over the subsequent 5 years, the corporate introduced on Monday.

VW intends to spend that cash on “[boosting] its product portfolio, regional R&D and manufacturing capabilities,” per a launch, in hopes that doing so will assist drive 55 p.c of its US gross sales to be EVs by 2030. The corporate intends to ramp down its inside combustion manufacturing capability over the identical timeframe, transitioning American meeting crops to supply the ID.4 in 2022, the ID.Buzz in 2024, and a yet-to-be-released SUV beginning in 2026.

The corporate estimates that 90 p.c of the autos it sells in North America are already assembled in North America. Its manufacturing amenities in Chattanooga, TN have already begun the electrification course of with its factories at Pueblo and Silao, Mexico coming on-line by the center of the last decade.

VW can also be betting massive on batteries, having already invested greater than $2.7 billion in North American provider partnerships forward of the ID’4’s launch. The corporate additionally plans to formally open its Battery Engineering Lab (BEL) in Chattanooga this Might and is contemplating developing a battery manufacturing plant stateside as effectively although that is nonetheless in its most preliminary planning phases.

These investments are already paying dividends to drivers. Throughout a press occasion Monday morning, Scott Keogh, President and CEO, Volkswagen Group of America famous that VW intends to deliver OTA updates and new software program options like plug-and-charge, which automates the transaction portion of recharging on a public station permitting drivers to easily plug in with out having to swipe a debit card or fiddle with NFC readers, later this yr.

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