Volkswagen announces five-year plan to accelerate EV production and software strategy
Following a recent supervisory board meeting, Volkswagen Group has announced a major shift in its electrification strategy to expedite EV production over the next five years. Additionally, the German automaker intends to revamp its software strategy in support of the effort. Software issues have had a huge effect on Volkswagen’s EV output up to this point.
Despite its software issues and supply chain constraints, Volkswagen Group has seen tremendous growth and demand for its ID lineup of all-electric vehicles. A growing appetite for zero-emissions vehicles around the globe helped the German automaker reach its 500,000 ID delivery target a year early, leading some analysts to believe Volkswagen will eventually surpass market leader Tesla in sales as early as 2024.
Of those half a million deliveries, however, most were for one EV – the ID.4, which saw 330,000 deliveries in 2022 alone. That is still a tiny number when compared to the 4.56 million vehicles VW delivered last year.
Clearly, there is room for improvement, which is the same sentiment shared by Group CEO Oliver Blume, who took over for Herbert Diess last summer. Blume’s first planning round with Group executives and supervisors was postponed from its scheduled date in November so the new chief could get his bearings.
Blume has since audited most of the Volkswagen’s current strategies including EV production and recently held the meeting to discuss a complete strategical pivot.
Volkswagen to share full EV production plans in March
According to a statement from Volkswagen Group, its management team presented a five-year investment plan to the supervisory board this past Friday, which incudes an accelerated shift to bolstered EV production and a revamped software strategy.
Per Reuters, another topic of discussion during Friday’s meeting was the decision of whether or not to erect a new EV production facility for the Trinity sedan. It was originally planning to launch in 2026; the former CEO Diess said it will “revolutionize Volkswagen.” Another possibility discussed late last year is to build Trinity at VW’s current plant in Wolfsburg.
An additional item on Friday’s docket was discussing which new EV models would see production at Volkswagen’s facility in Hannover, Germany, which is scheduled to end production of the Bus 6.1 combustion model soon. If a new model doesn’t come to Hannover, 1,000 jobs could be on the chopping block.
That being said, a spokesperson for the works council relayed that Hannover’s jobs are guaranteed under an agreement with Volkswagen through 2029, so we’d expect to see a new EV take over the plant’s production lines.
Answers to the discussions above have not been made public at this point. All we know is that VW intends to speed up its electrification strategy and re-strategize the software development to support those vehicles. Volkswagen states that it will share full details of Friday’s meeting during its annual media conference on March 14, 2023. Stay tuned.
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Rivian (RIVN) is already preparing for changes under the Trump administration. In anticipation of Trump’s new auto tariffs, Rivian built a reserve of EV batteries from Asia as a countermeasure.
Rivian has a plan to overcome Trump’s tariffs
At this point, nearly every major automaker has acknowledged the damaging impact of tariffs on vehicle imports in the US.
GM, Volkswagen, Mercedes-Benz, Stellantis, and Volvo all withdrew their financial guidance due to the uncertainty. Rivian wasted no time preparing for the changes.
According to a Bloomberg report on Wednesday, Rivian has been stockpiling lithium-iron phosphate (LFP) battery cells from Gotion High-Tech since last year. The battery cells are used in Rivian’s Commercial Van, initially used by Rivian and now open to other businesses.
Sources familiar with the matter said Rivian covered the upfront costs to stockpile inventory for later use. China’s Gotion paid for and built a separate reserve in the US.
The sources also said that Rivian is working with Samsung SDI to move a significant portion of its battery supply from Korea to the US. Battery cells from Samsung are used in Rivian’s R1S electric SUV and R1T pickup. All three vehicles are built at Rivian’s manufacturing plant in Normal, IL.
The move is to ensure Rivian has enough supply while minimizing potential higher prices and other complications from the tariffs.
As it prepares to launch its smaller, more affordable R2, sources said Rivian is looking to secure similar deals for batteries and raw materials in the future. Rivian has reportedly already signed its first agreement, but no other details were offered.
The upcoming R2 will use cells from LG Energy Solution. Although they will initially come from Korea, LG will produce the next-gen batteries in Arizona.
Electrek’s Take
Although Trump eased some of the impacts on imported vehicles on Wednesday, many tariffs remain in place and are already causing havoc in the industry.
Almost every major automaker has withdrawn earnings guidance due to the expected impacts. Like Rivian, others are taking countermeasures, including boosting US inventory in preparation. However, how long can this last?
Trump claims that the “Golden Age of America” is here, but it looks to be the complete opposite. The tariffs will only put the US further behind as China and others emerge as global leaders in tech.
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Tesla plans to deploy a public charging network for its Tesla Semi truck, starting with 46 stations in 2027, according to a new presentation.
At a new presentation at the ACT Expo this week, Tesla’s head of the Semi program, Dan Priestley, revealed several new details about the long-awaited electric semi-truck.
During the presentation, Priesley claimed that Tesla Semi trucks have already cumulatively traveled 7.9 million miles (12.7 million km).
He didn’t disclose how many trucks contributed to this total mileage, but he did add that “more than 26 Tesla Semi trucks” have each traveled over 100,000 miles.”
These numbers have been updated from a previous presentation in September 2024, when Priestley said the Tesla Semi fleet had traveled 7.5 million miles and that a single truck had traveled 250,000 miles (400,000 km) over the last 1.5 years.
Tesla also confirmed that the truck is going to be equipped with a 25 kW Power Take Off (PTO) at the back to power external systems, like a refrigerated trailer, for example (via Jake Guerra on LinkedIn):
Priestley also revealed a few more details about Tesla’s planned expansion of its charging network for the Tesla Semi.
The company currently operates the Supercharger network. It is the most extensive EV fast-charging network in North America, but it is geared toward passenger electric vehicles and not practical for bigger commercial vehicles, like Tesla Semi.
Tesla has already deployed Megachargers, its charging station for electric semi trucks, at its own installations and those of a few customer-partners who have been testing the Tesla Semi, but now it plans to deploy public charging stations to enable long-haul trucking with the electric truck.
Priestley said that Tesla is now aiming to deploy 46 Megacharging stations as part of its public charging network by early 2027.
It is not clear whether the locations on the map accurately represent the plans, but it appears likely based on previously reported Megacharger information.
The presentation follows an update released by Tesla this week about the Tesla Semi factory in Nevada.
The automaker aims to start volume production of the truck in 2026.
Tesla Semi was first supposed to enter production in 2019, but it has been significantly delayed as Tesla tried to deliver on the promise of range and capacity.
It appears that the automaker may be able to deliver on those, but at a significantly higher price than previously announced, as we recently reported.
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Pittsburgh International Airport (PIT), already the first airport in the US to be fully powered by a microgrid, is expanding its solar field with utility Duquesne Light Company (DLC) and solar owner and operator IMG Energy Solutions.
The new solar project will add more than 11,216 panels to the airport’s existing solar array, generating an additional 4.7 megawatts MW) of renewable energy. That’s enough to cut around 5 million pounds of carbon emissions annually. It’s DLC’s first-ever power purchase agreement, and clean energy will go to the regional grid to help power homes and businesses in Pittsburgh.
This expansion will sit on 12 acres of land that used to be a landfill, adjacent to Pittsburgh Airport’s eight-acre solar array, which hosts nearly 10,000 panels. This new and old infrastructure, just off the airport exit from I-376, supports the airport’s 23-MW solar and natural gas microgrid, launched in 2021.
Allegheny County executive Sara Innamorato called the project a “fantastic step” toward a more sustainable future for the region. PIT also has plans to make sustainable aviation fuel onsite.
DLC will use 100% of this project’s energy and Renewable Energy Credits (RECs) to support its default service customers.
“We’re maximizing the use of airport assets for the betterment of the region – from air service to real estate development to energy innovation,” said PIT CEO Christina Cassotis. “And there’s more to come.”
The new solar field is expected to come online by 2027. So if you’re flying into Pittsburgh in a couple of years, you might spot it from your window seat.
Read more: Solar adds more new capacity to the US grid in 2024 than any energy source in 20 years
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