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VW Commercial Vehicles Electrified: From One to 55 in Eight Years
Although the share of electric vehicles in 2021 was still marginal at one percent, the subsidiary VW Commercial Vehicles has committed to rapid electrification. "By 2030, more than 55 percent of our vehicles in Europe will be battery-electric vehicles powered by 'green' electricity," said Brand Board Chairman Carsten Intra during a media conversation surrounding the annual press conference.
The only fully electric model from Hanover at the moment is the large e-Crafter transporter, which rolls off the assembly line with the drivetrain of the old e-Golf. Currently, plug-in hybrids are also counted among the electrified vehicles — with the only model here being the T7 Multivan, which was introduced last year. Together, the two models reached 3,600 units last year, which means a negligible share of total sales considering 359,500 units sold.
ID.Buzz as an Electric Booster
The recently presented VW ID.Buzz is expected to drive this change. It will hit the market as a premium van as well as a compact panel van starting this fall and aims to sell 25,000 units. Next year, planning includes 50,000 to 60,000 units, with a long-term target of 130,000 units to be manufactured in Hanover. No specific prices have been announced yet, partly due to the volatile raw material situation that significantly influences end prices. Recently, the media reported prices of 45,000 euros for the Cargo and starting at 55,000 euros for the Van.
Apart from that, further hybrids are set to expand the portfolio. For instance, the Caddy eHybrid is ready to launch. Currently, demand for the Multivan eHybrid is so high that the order lists have been temporarily closed because delivery times exceeded twelve months, as reported by VWN Sales Director Lars Krause.
Technologically, they also rely on further developing the hybrid solution, which Krause sees as essential for many users and as a bridging technology, with growing electric ranges. For example, the new 1.5-liter TSI gasoline engine will be used for the first time in the Caddy eHybrid, while the T7 Multivan still combines an E-machine with the old 1.4-liter TSI. The Caddy eHybrid should also achieve the 60 kilometers of electric range relevant for potential subsidies.
Plug-in Hybrids Established, Natural Gas in Doubt
However, the subsidies for plug-in hybrids will expire at the end of the year, and the new regulations are still unclear. In addition, VW Commercial Vehicles aims to continue improving combustion engine technology, which will still play a role in this sector for the foreseeable future, according to Krause. Conversely, the prospects for natural gas propulsion are looking bleak. Whether the originally planned Caddy TGI will still be launched remains unclear for the time being. The technology is currently not enjoying particularly high customer demand, Krause noted.
Broad Electrification: In Tandem with Ford
Especially in cooperation with the exceedingly ambitious corporate partner Ford, the broad electrification planned by VWN could take hold. While the already concretely announced pick-up based on the Ford Ranger will still be a conventionally powered vehicle, Ford has announced an electric Courier (below the Caddy/Connect) for 2024, as well as a fully electric version of the larger Custom already for 2023, which could eventually replace the T6.1 and complement the range above the ID.Buzz. Additionally, the Ford E-Transit is currently ramping up production. With significantly greater range and higher performance, a transfer towards the e-Crafter could also be on the horizon in the mid-term.
Autonomous Driving: Moia Shuttles as Early as 2025
In the opposite direction, the ID.Buzz AD is progressing in terms of autonomous driving, where the cooperation partners are utilizing the expertise of the joint venture Argo AI. A production-ready version of the ID Buzz AD is expected to be rolled out to the subsidiary Moia in Hamburg by 2025, which is now also going into urban use in Munich with a 2.0 update, as reported by Carsten Intra. Automation in the commercial sector of last-mile delivery is expected to be somewhat easier than in the more complex area of passenger shuttles.
Intra anticipates that, in the mid-term, they will also realize entirely different concepts from the ID.Buzz, known as Special Purpose Vehicles (SVP), which could potentially operate without a steering wheel and cockpit, allowing for completely different seating and interior concepts, such as ample seating and wheelchair accessibility. In particular, such a vehicle would need to take a significant step forward in terms of costs compared to the ID.Buzz, postulated Intra. With the development of AD technology, Hannover is also making an integral contribution to the NEW AUTO strategy of the Volkswagen Group, emphasized Intra.
VW's Advantage: Own Software, Sensor Technology, and Vehicle Hardware
We see ourselves as a provider of a technical platform and the corresponding lidar sensors and software in a key position, said Intra. Ride-hailing services like Uber or Lyft could therefore become customers in the future, as could public transport companies. We are also closely observing the services of GM's mobility subsidiary Cruise in the USA, which are still struggling with significant restrictions and high mileage costs, Intra noted. He expects that the business model will become attractive mainly through the savings of a driver and will have to assert itself city by city in the market.
Use Instead of Own: Traditional Sales No Longer Dominates
In any case, this area forms the basis for the growing businesses in the "Mobility as a Service" and "Transport as a Service" sectors outlined in the GRIP2030 strategy plan, which are expected to surpass the traditional car business by 2030. In this current core business, Hannover aims to generate annual EBIT (earnings before interest and taxes) of more than one billion euros by 2030, with a sales return of more than five percent and a capital return of over 20 percent. The "AD/MaaS/TaaS" business unit, which encompasses activities related to autonomous driving and MaaS/TaaS services, will offer services in more than 50 cities worldwide, according to the promise. The sales return across all services is expected to exceed ten percent.
Translated automatically from German."The goals we aim to achieve with GRIP 2030 are ambitious – but they are also realistic. With our products and services, we will significantly shape the mobility of the future," announced Carsten Intra.
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