• 2 hours China Targets Hong Kong As Cold War With US Heats Up
  • 1 day No Shirt, No Shoes, No Mask, No Service
  • 2 days Is Bitcoin Actually Worth The Energy It Uses?
  • 2 days Insurance Companies Are Turning People Away As COVID-19 Crisis Escalates
  • 2 days Mining Exploration To Drop By Nearly 30% Despite Gold Boom
  • 2 days Europe Set To Unveil Its $500 Billion 'Green Deal'
  • 3 days Major Diamond Mine Slashes Production
  • 3 days Social Security Could Dry Up In Less Than A Decade
  • 4 days Europe On The Brink Of Economic Crisis
  • 4 days Barrick Gold Launches Exploration Program In Japan
  • 4 days COVID-19 Is A Hacker’s Paradise
  • 4 days Why Big Finance Is Bailing On Fossil Fuels
  • 5 days A New Trade War Will Send Gold Even Higher
  • 5 days Could COVID-19 Lead To Authoritarianism?
  • 6 days The $30 Trillion Mega-Trend To Watch As Markets Bounce Back
  • 6 days Gold Soars To 7-Year Highs
  • 7 days From Smartphones To Smart VR Acquisition, Apple Pushes the Envelope
  • 9 days Why Covid-19 Won’t Kill The Renewable Revolution
  • 10 days COVID-19 Could Spark A Global Food Crisis
  • 10 days How To Play The Next Big Rally In Gold
Is $90 Oil Possible? An Interview With Jay Park

Is $90 Oil Possible? An Interview With Jay Park

With oil prices crashing despite…

The Coronavirus Crisis Can’t Put A Lid On Coal Production

The Coronavirus Crisis Can’t Put A Lid On Coal Production

Despite massive disruptions caused by…

How Hydrogen Could Become The Fuel Of The Future

How Hydrogen Could Become The Fuel Of The Future

Hydrogen has long been touted…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Commodities
  3. Energy

Volkswagen Taps Into $50 Billion War Chest To Take On Tesla

Volkswagen War Chest

One of the world’s largest carmakers, Germany’s Volkswagen AG, is betting big on electric vehicles and e-mobility with a war chest of around US$50 billion to challenge Tesla, which, for the time being, seems unfazed by the increasingly crowded EV market.

Three years after the diesel emissions scandal, Volkswagen said last November that it would invest US$49.7 billion (44 billion euro) on e-mobility, autonomous driving, new mobility services, and digitalization in vehicles and at plants through 2023. This investment would represent around one-third of all expenditure for the 2019-2023 period that Volkswagen has planned.  

At the Geneva Motor Show this week, Volkswagen staged the world premiere of the electric ID. BUGGY.

“The ID. BUGGY demonstrates the broad spectrum of emission-free mobility that can be achieved with the MEB [electric drive matrix] within the Volkswagen brand. But we want to open up the platform for third-party suppliers”, said Ralf Brandstätter, COO of the Volkswagen brand.

“The transformation of the Volkswagen brand is in full swing. We are making excellent progress in the areas of digitalisation of our company and the electrification of our models,” Brandstätter added.

 

Volkswagen’s motto is “electric cars for millions, not for millionaires,” chief executive Herbert Diess says.

For all legacy automakers venturing into EVs, Tesla will be the competitor to beat. Last week, Tesla said that the long-awaited US$35,000 Model 3 was now available.

“Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected,” Tesla said last week.

“Base Model 3 available in Europe in ~6 months, Asia 6 to 8 months. Latter contingent on Shanghai Gigafactory. Country-specific taxes & import duties mean price may be 25% or more above US number,” Elon Musk tweeted last week. A few days later, Musk teased a Model Y unveil event on March 14. Being an SUV, Model Y “will cost about 10% more & have slightly less range for same battery,” Musk noted.

By Tsvetana Paraskova for Oilprice.com

Back to homepage

Leave a comment

Leave a comment