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

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

VW intends to spend that money on “[boosting] its product portfolio, regional R&D and manufacturing capabilities,” per a launch, in hopes that doing so will assist drive 55 % of its US gross sales to be EVs by 2030. The company intends to ramp down its inner combustion production capacity over the identical time-frame, transitioning American meeting vegetation to provide the ID.4 in 2022, the ID.Buzz in 2024, and a yet-to-be-released SUV beginning in 2026.

The company estimates that 90 % of the automobiles it sells in North America are already assembled in North America. Its production services 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 be betting large on batteries, having already invested greater than $2.7 billion in North American provider partnerships forward of the ID’4’s launch. The company additionally plans to formally open its Battery Engineering Lab (BEL) in Chattanooga this May and is contemplating developing a battery production plant stateside as effectively although that is nonetheless in its most preliminary planning levels.    

These investments are already paying dividends to drivers. During a press occasion Monday morning, Scott Keogh, President and CEO, Volkswagen Group of America famous that VW intends to carry OTA updates and new software 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 year. 

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