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VW chair says component cost decrease keeps him confident of EV success

Volkswagen AG is in the middle of implementing a comprehensive electric vehicle strategy, one that we've been documenting for a long time. The Group stands ready to offer dozens of plug-in vehicles in the coming years if it feels there is sufficient demand and believes that selling a million EVs in Germany by 2020 is reasonable. That would be a solid number, but remember that VW sold over 5,923,000 passenger cars around the world last year, and the group as a whole sold over 9.7 million. At the company's annual Media Conference and Investor Conference in Berlin recently, the chairman of the board of VW AG - surrounded by some decidedly non-green examples of the VW Group's vehicles (some absurd new Bugatti, for example) - took some time to put the company's EV plans into focus. The upshot is that Dr. Martin Winterkorn is still guiding his electromobility ship into new waters, saying that "many more [plug-in] models will follow." Winterkorn said there are three main reasons he is confident in the ability of VW (and Audi and Porsche, at the very least) to push EV sales upward. Batteries are getting better, he said, and if the ranges can be extended, then customers are happy. But the real secret lies in reducing component costs. He said (as translated): It is important to look at the cost of the components: the battery technology, the electric motor and the electric components. Whenever you go into volume production, you of course have economies of scale. In two to three years' time, if we are able to achieve the goals we are setting for ourselves with cost and reach sufficient volume, I do believe that we can achieve two to three percent [market share] within VW Group. So, hitting a million EVs by 2020 is reachable. With the e-Golf and the e-Up off to excellent sales starts, we're willing to be confident as well.

VW expanding in Chattanooga, hiring workers ahead of SUV production

Hey, look! We're writing about Volkswagen's Chattanooga, TN factory and the focus isn't on yet another unionization effort. That's because the big news at the still-new factory is VW's plan to expand and increase its workforce in preparation for the arrival of the German brand's long-awaited midsize crossover. The expansion, which will add over half a million square feet of factory space, overhaul the assembly, body and paint shop and add 2,000 employees to the factory's ranks, officially kicked off last month. "This is a very exciting time in the history of Volkswagen Chattanooga," president and CEO of operations at the plant, Christian Koch, said in a statement. "A lot of hard work is going into adding this second vehicle line to the plant, but it is crucial to our efforts to move forward in America." "Not only will Volkswagen's expansion create thousands of new jobs, it will strengthen their roots in our city," Chattanooga's Mayor, Andy Berke, said in a statement. "From the construction at the plant to the development of a visitors center, there is no doubt that Volkswagen is invested in Chattanooga." VW Chattanooga has been a constant in the headlines over the past few years as pro-union and pro-business interests have battled over the souls representation rights of its roughly 1,500 workers. Just over a year ago, the UAW was defeated in its initial unionization bid, although pro-labor interests have not gone quietly into the night. Construction is expected to continue for two years, with production of Chattanooga's second vehicle expected to commence in 2016. Scroll down for the official press release from Volkswagen. VOLKSWAGEN CHATTANOOGA'S PLANT EXPANSION UNDERWAY Feb 24, 2015 Construction Will Add 2nd Vehicle Line: New Midsize SUV CHATTANOOGA, Tenn. (Feb. 24, 2015) - Construction is underway at the Volkswagen Chattanooga manufacturing facility in preparation for production of an all new Midsize SUV. The first phase of construction started in early January 2015 and will continue for the next two years. Volkswagen Chattanooga CEO and President Christian Koch gave a site tour to Chattanooga Mayor Andy Berke and Hamilton County Mayor Jim Coppinger on Tuesday, highlighting the necessary expansion of the production areas in the body shop, paint shop and assembly areas.

VW agrees to halt next-gen rally car development to help others stay in WRC

Volkswagen has petitioned the FIA to hold on to the current specifications for cars in the World Rally Championship, according to Autosport.com. The move is evidently an effort to keep as many competitors in the sport as possible, despite the fact that using the current spec racers may actually hurt Volkswagen's chances at winning. The three factory teams currently competing in the WRC are at the end of a three-year homologation cycle at the end of 2013, and new cars are expected to bow next year. But developing new racers could cost as much as $4.7 million.
That price tag would put M-Sport (which fields Ford racers) out of the WRC game for 2014 and would put Citroën participation in question as well. VW has already begun work on the next iteration of its Polo R WRC, and the hatch has nabbed four wins in six rounds this season. Now it appears that car won't bow until at least 2015. The FIA has officially agreed to freeze homologation of new WRC cars until the end of next season.