Volkswagen Group new Roadmap E: 50 BEV, 30 PHEV new Group vehicles by 2025, €50B battery tender; €20B capex earmark
11 September 2017
At the Volkswagen Group Media Night ahead of the International Motor Show (IAA) in Frankfurt, Germany, the Volkswagen Group announced what it called the most comprehensive electrification initiative in the global automotive industry. Under the new “Roadmap E”, Volkswagen will have electrified its entire model portfolio by 2030 at the latest.
This means that, by then, there will be at least one electrified version of each of the 300 or so Group models across all brands and markets. This makes Volkswagen the first big mobility group to have put a date on the electrification of its entire fleet. The Group will need more than 150 GWh of battery capacity annually by 2025 for its own e-fleet alone. This is equivalent to at least four gigafactories for battery cells. To meet this demand, the Company has put one of the largest procurement volumes in the industry’s history out to tender: more than €50 billion (US60 billion).
We have got the message and we will deliver. This is not some vague declaration of intent. It is a strong self-commitment which, from today, becomes the yardstick by which we measure our performance. The transformation in our industry is unstoppable. And we will lead that transformation.—Matthias Müller, Chairman of the Board of Management of Volkswagen AG
Volkswagen had already firmly established e-mobility as a key focus area in the “TOGETHER – Strategy 2025” future program presented in June 2016, and set itself the goal of becoming the global number one in e-mobility by 2025. (Earlier post.)
The Group estimates that around one in four new Group vehicles—up to three million units a year depending on how the market develops—could already be purely battery-powered in 2025.
Roadmap E gives an added boost to product planning massively to accelerate the electrification of the Group-wide vehicle portfolio. The Group brands will bring a total of more than 80 new electrified models to customers by 2025, including some 50 purely battery-powered vehicles and 30 plug-in hybrids.
This figure will then increase by leaps and bounds over subsequent years until there is at least one electrified version for each of the Group’s 300 or so models across all vehicle classes worldwide by 2030 at the latest, in line with Volkswagen’s commitment.
With ‘Roadmap E’ we are opening up a new chapter in our Group’s history. And setting the scene for e-mobility’s final breakthrough. Then it is up to customers to decide how fast it will gain widespread acceptance.Matthias Müller
Capex in e-mobility to be ramped up. Roadmap E is also coupled with another increase in capex on e-mobility. Up until 2030, the Group will earmark more than €20 billion (US$24 billion) for direct investments in the industrialization of e-mobility: in new vehicles based on two entirely new electric platforms, in upgrading plants and in training for the workforce, in charging infrastructure, in trading and sales and, last but not least, in battery technology and production.
Volkswagen is addressing the issue of battery technology with a multi-stage medium- to long-term strategy starting with bundling Group-wide development, procurement and quality assurance activities for all battery cells and modules in a “Center of Excellence” in Salzgitter. The Volkswagen brand is also setting up its first pilot line there to accumulate production know-how. (Earlier post.)
By 2025, the Group will need over 150 GWh of li-ion battery capacity annually for its own fleet alone.
In order to meet this huge requirement, a tender process has been initiated with regard to long-term strategic partnerships for China, Europe and North America. The procurement project is one of the largest in the history of the automotive industry, with a total order volume of more than €50 billion just for the Group's future volume vehicles based on the Modular Electrification Toolkit (earlier post).
That will meet the Group’s needs for the first wave of e-mobility. Looking further ahead, Volkswagen is already gearing up for the next generation: solid-state batteries. The Group also plans to bring this forward-looking technology to market maturity together with partners.
For us, the transformation of transportation and the energy transition are inseparable. And creating a comprehensive charging infrastructure rapidly – in cities and on highways – will be critical to success. In Europe, and particularly in the automotive stronghold of Germany, much more needs to be done. Only then will customers’ trust grow. And only then will electric cars come out of the niche – and achieve relevant market share in years to come. I’m convinced this will succeed if politicians, the energy industry and automakers work in harness.—Matthias Müller
Conventional drivetrain portfolio as a bridge. At the same time, the announcement of its accelerated electrification initiative underlines the Volkswagen Group’s commitment to an orderly system changeover, with today’s internal combustion engine as an indispensable bridge to an emission-free age.
For the time being, we will be offering the entire powertrain spectrum – from conventional to fully-electric – to enable sustainable and affordable mass mobility. We are not being arbitrary. We are listening to the voice of reason.—Matthias Müller
Independent studies are showing that the Volkswagen Group’s present generation of internal combustion engines ranks among the cleanest and most efficient. The latest Euro 6 diesel engines deliver above-average performance in the new WLTP cycle under real-world conditions. Volkswagen will continue to invest in the ongoing improvement of its conventional drives over the coming years.
For example, an SCR catalytic converter will be a standard feature of every new diesel engine produced by the Group going forward. All new gasoline engines will be equipped with a particulate filter across the board. The next engine generation from 2019 onward is expected to bring further significant improvements in consumption and emissions.
In addition, the Group is working on synthetic fuels produced from renewable energies that could turn internal combustion engines into carbon-neutral powertrains (e-fuels). The Group is also significantly expanding its range of CNG vehicles and, spearheaded by Audi, refining fuel cell technology toward market maturity.
TESLA will have very strong competition, with PHEVs on top.
Will batteries' performance be improved in due time?
Posted by: HarveyD | 11 September 2017 at 02:50 PM
Müller: "We have got the message and we will deliver."
Well, that is welcome news.
I do not fear for Tesla's fortunes, with their significant lead and culture of innovation and doing the right thing, (i.e. Supercharger) but the EV laggards are going to have a very deep hole to dig out of soon.
Posted by: electric-car-insider.com | 11 September 2017 at 04:13 PM
Spot on. The larger laggards may be able to survive but the smaller ones are likely to be replaced by newcomers.
Posted by: Gasbag | 11 September 2017 at 06:04 PM
FCA may very likely become a Chinese controlled company; but, GM and Ford will be protected by the U.S. Government. Interesting to see that U.S. companies will finally understand that outsourcing manufacturing also outsources capital, IP, and sooner or later control.
Posted by: Lad | 11 September 2017 at 07:08 PM
Money and control have no effective border.
At the current production rate, with over 25,000,000 ICEVs/year and 500,000++ electrified vehicles/year, China is already the word leader and may very be more so by 2020 and beyond.
The Chinese local market will double-triple+ very quickly, specialy for electrified vehicles?
Posted by: HarveyD | 12 September 2017 at 08:15 AM
I have seen lots of power point road maps that led no where.
Posted by: SJC | 13 September 2017 at 09:37 AM