VW CEO Now Weary Of Higher Than Expected Electric Car Costs

While VW originally set aside roughly 20 billion euros ($23 billion) for their shift to battery power, it would seem that in reality, building electrified versions of each of their models will cost more than they originally thought.

In order to get there, the German automaker will need to further reduce their expenses and become even more efficient moving forward. While acknowledging this issue, CEO Herbert Diess failed to provide a new price figure, reports Autonews.

“The burden for our company, such as the cost of bringing to market electric cars, will be higher than expected,” said Diess in a joint interview with labor boss Bernd Osterloh in VW’s internal newsletter. “This is particularly so since some of our competitors have been making more progress.”

The VW Group is looking to launch as many as 80 new electric vehicles across all of its brands (VW, Audi, Porsche, Skoda, Seat) by the year 2025, while also offering an electrified version for each of its models by 2030.

Since 2016, the group has increased profitability for its namesake brand, which is responsible for over a third of revenues – sales up to 4.1% last year, from 1.8%.

“We need higher profits to finance our future,” added Diess. “Four percent is a minimum, 5 percent to 6 percent allow for some future investments and with 7 percent to 8 percent we’re crisis-ready.”

VW is aiming for an operating profit goal of 8% by 2025 for the entire group, and at least 6% for the VW brand over the same 7 year period.

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  • charlotteharry57

    Why on Earth do they need electrified versions of EACH of their models? Some very poor decision-making going on here.

    • Matteo Tommasi

      It’s Volkswagen: they have 10 brands, every brand covers each segment from B to E. Think about making audi Q8, lambo urus and cayenne coupé…

    • Jørn-tommy Skjellnes

      bacause in a lot af markeds bensin and diesel cars will be banned in future, norway from 2025, france from 2040 uk from 2040, india, israel, ireland and holland from 2030.and germany from around 2030

      • Daniela Wolf

        And? Until then Diesel is the 1st choice besides one fact: OLD DIESEL will be band.

  • TheHake

    I wish I could have that SUV with a proper engine.

  • Wonderful. This means more torsion beam suspensions and cheap plastic diarrhea in more VAG vehicles, in order to cut costs.

  • S3XY

    Lol. Every week “VW will have 20 EV’s by 2021, 2022, 2023, etc”

    Now it’s going to cost too much.

    They are very far behind and continue to be left further in the past.

    • Mr. EP9

      Of course it’s going to cost a lot. Why do you think Tesla can’t turn a profit with the Model 3? (Well, aside from admitting they have no idea how to mass produce an EV and focusing on quantity and not quality.) It’s because developing an EV from the ground up, building the infrastructure, and making a dedicated assembly line requires time and money. So don’t be surprised when the established makers find ways of keeping costs low to make these things profitable. That’s what Mercedes is doing with the EQ, BMW will likely do the same with the iX3, and Audi will do with the E-Tron.

      No one is going to be burning through 100s of millions of dollars every quarter just to get EVs out the door.

      • brn

        Give VW a break. Unlike Tesla, they’re new to the car business.

        /s

  • Chris Kay

    If you order one now you might get it by 2025.

  • TheBelltower

    VW has been talking about that damned minibus since the 1990’s. I have no confidence that it’s actually going to happen this time.

  • BUILD ONE FOR MASS PRODUCTION FIRST BEFORE THINKING ABOUT 80.

  • GobbleUp

    Duh.

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