Volkswagen: Small reshuffle and large investments in electric vehicles

As part of Planning Round 70, the Volkswagen Group has decided to further electrify its European sites. The goal is to become the market leader in electromobility by 2025. This drives forward the implementation of the Group's so-called "NEW AUTO" strategy. The corporate and production site in Wolfsburg is to be transformed, and the Group's competitiveness will be further strengthened by higher investments in future technologies. For the first time, future investments, primarily in e-mobility and digitalization, amount to 89 billion euros or 56 percent, making up the largest share of the total investments of 159 billion euros, emphasize the Wolfsburg representatives.

Every fourth vehicle electric by 2026

It is expected that every fourth vehicle sold in 2026 will have a battery-electric drive. The previous Group CEO, Herbert Diess, remains at the helm but is expected to focus more on the second major transformation: digitalization and software issues. He hands over the management of the China business to the previous VW brand chief, Ralf Brandstätter, who will rise to the Group Board. Markus Schäfer, the Skoda CEO, will take over the VW brand.

"The decisions show the vehemence with which we drive forward the transformation of the Volkswagen Group. We focus our investments on all essential future fields of mobility. Our financially robust and solid starting point enables us to handle the necessary investments with our own resources," proclaimed the Chairman of the Supervisory Board of Volkswagen AG, Hans-Dieter Pötsch.

Electrification of further European sites

With the comprehensive electrification of European sites, the Group aims to leverage further synergies and utilize economies of scale. The Group alone is investing around 21 billion euros in the Lower Saxony sites, with the majority going to production and component sites. Hanover is to become fully electric in the medium term. The current most significant future project, the first Artemis vehicle, will be based in Hanover, and body production for a new Bentley model has also been confirmed. Additionally, another vehicle derivative for the site, the ID. California, has been approved.

With the MOIA shuttles and the ID. BUZZ AD, the site also forms the "spearhead" for autonomous driving within the Group. For Wolfsburg, the electrification of the site with the Trinity project has been confirmed. Furthermore, given the high demand for e-cars, the full production of the ID.3 is planned for 2024, with the economic viability ensured by a site package. Before 2024, partial production is planned with supplies from Zwickau.

Additional Volume Serving

With this plan, the company aims to serve additional market volume that Zwickau alone could not fulfill given its long-term good utilization forecasts. The German component plants continue their transformation towards e-mobility, initiated in 2015. The Hanover site will produce not only hardware for charging infrastructure but also axles for MEB models in the future.

In Braunschweig, Salzgitter, and Kassel, the group is investing in the further expansion of the existing MEB production of battery systems, rotor/stator, and e-motor. Additionally, the sites are already preparing for the production of essential components of the SSP platform. Volkswagen is thus taking the next step in its strategic development to become a key supplier of e-modules and e-platforms.

Salzgitter Becomes a Battery Hub

The Salzgitter site will further expand to become a European battery hub: The group is investing around 2 billion euros to produce battery cells for the volume segment of the Volkswagen unit cell starting in 2025 in its Lower Saxony gigafactory. Moreover, the development, planning, and production control of battery activities will be centralized in Salzgitter. The Supervisory Board has approved the establishment of a European company for this purpose. This company will bundle the group's battery-related activities and potentially enable third-party participation. The new company will also be responsible for the strategic partnerships agreed upon this week with Umicore, 24M, and Vulcan Energy, it was announced. For the Osnabrück site, a future production program was agreed upon, and for Dresden, a reuse concept will be examined in planning round 71.

"89 billion euros in the next five years alone in future technologies such as electromobility and digitalization – that is a clear commitment. The fact that 21 billion euros are flowing into the Lower Saxony sites in Wolfsburg, Hanover, Braunschweig, Salzgitter, Osnabrück, and Emden is once again a sign that the global corporation Volkswagen is committed to its Lower Saxony roots," commented Stephan Weil, Prime Minister of Lower Saxony and member of the Supervisory Board of Volkswagen AG.

Two Porsche Models in Leipzig Utilize Synergies

In addition, the company is planning further investments in e-mobility in Germany and Europe: In Leipzig, the synergies of the electric PPE platform for the premium segment will be utilized with two Porsche models. The electrification of the Neckarsulm site includes the integration of the Audi E6 vehicle family in the next generation. The Brussels plant, which is already fully electrified today, will receive the new Audi Q8 e-tron starting in 2026. On the Iberian Peninsula, compact e-vehicles are planned to be built at the multi-brand plant in Martorell starting in 2025, and SUV-class e-vehicles at the multi-brand plant in Pamplona. The final decision depends on the general conditions and government funding.

Wolfsburg Transformation – Vision for 2030 Agreed

The Trinity project has been confirmed for the Wolfsburg site, and an evaluation of further derivatives in the next planning round has been decided.

“With the planning round decisions, our company once again proves that consistent transformation and sustainable perspectives for job security go hand in hand. The results for our colleagues at the global sites, in the brands, and companies strengthen our continued joint course. As the employee side in the supervisory board, we explicitly view the planning round projects as exactly the right plan in these highly uncertain times: Volkswagen delivers – and we will continue to successfully shape the change," explained Daniela Cavallo, Chairwoman of the General and Group Works Council.