Volkswagen sets high goals to compete with Tesla in electric car production
By: Klon Perez Updated 07 May 2022, 03: 30 pm EDT
The German brand Volkswagen has set itself a fairly ambitious goal in the medium and short term: to manufacture more than 800,000 electric cars in a year. With this, the car manufacturer wants to reach the one that at the moment seems unbeatable in this electric car market: Tesla.
To begin with, it must be said that Volkswagen is the leading brand in car sales in Europe. And its automotive group has other popular firms such as Audi, SEAT or Škoda under its tutelage, which makes it one of the most productive and successful brands in the world.
All this suggests that it is totally normal for Volkswagen to want to extend its dominance in European and even world production and intend to enter a tough business battle with Tesla.
The sum of the fine for Volkswagen and BMW amounts to more than one billion dollars.
But in order to know how capable Volkswagen can be of competing with Tesla, we must know what the numbers are that it currently manages the brand led by Elon Musk. We can start by saying that in 2021 Tesla sold almost twice as many electric cars as the German brand.
That is why the Volkswagen sales manager said in an interview for Reuters that the first goal will be to produce 800,000 electric cars in 2022. This figure is closely related to the production of electric models of the ID family so that they represent the 50 % of the total volume of the brand from here to 2030.
It will be a close race, but we will not give up. I have to say that we did not expect our main US competitor to be so fast and well prepared
Herbert Diess , CEO of the Volkswagen Group
The Volkswagen ID.5 is the highest point of its generation.
To achieve this ambitious goal , the brand has proposed to invest $7,100 million dollars in electric vehicle production in North America, opening the possibility that from here to 2030 come out 25 new models in the area.
In addition to that, Volkswagen currently invests € 07,000 million euros for the comprehensive transformation of all its resources and facilities, as well as € 000,03 million euros earmarked for the electrical offensive, other €3, millions for software development and digitization and another thousand for hybridization.
Even with all that investment, it is still an unknown if the German brand will finally be able to compete head-to-head with Tesla.
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