Volkswagen has ‘all the ingredients’ to succeed as the US shifts to EVs, but will it?
Volkswagen’s CFO Arno Antlitz said Europe’s largest automaker has “all the ingredients” for success as the US auto industry shifts to electric. Despite this, VW is seeing reluctance for its EVs in Europe and potentially in the US as well.
Volkswagen gears up for North American EV transition
In an interview with Bloomberg Television Wednesday, Antilitz explained VW has what it takes to grow in the US as the buyers transition to EVs.
Last April, Volkswagen announced its first North American EV battery cell plant in St. Thomas, Ontario. The facility will host six production blocks with up to 90 GWh volume. According to VW, that’s enough for around 1 million EVs per year.
The massive 370-acre factory is about the size of 210 football fields. VW says the entire site will cover around 850 football fields.
VW’s factory plans to begin producing sustainable unified cells in 2027. The cells will power VW Group EVs, including its new Scout brand.
Volkswagen is reviving the Scout brand into a rugged all-electric automaker. The company will build vehicles at its $2 billion facility in South Carolina.
Once production begins in 2026, VW expects to produce over 200,000 Scout EVs. Scout’s CEO, Scott Keogh, confirmed the company is on track to unveil its electric truck and SUV later this year.
After hiring former Jeep and RAM designer Chris Benjamin in May, Keogh claimed his “thumbprints are all over many of the most beloved off-road vehicles.”
Scout’s compact four-wheel vehicle was the first real competition to the popular Jeep brand in the 70’s and 80’s. Before the Ford Bronco and Chevy Blazer hit the market, Scout’s vehicles shaped many of the vehicles we see in the US today.
Despite the success, the brand’s parent company faced financial troubles, leading to a business overhaul.
Volkswagen bought the rights to Scout in 2021 after its trucking unit (Traton Group) merged with Navistar. The company confirmed it would resurrect the brand into an off-road EV maker to compete in the US’s biggest segments.
Can VW compete as the US shifts to EVs?
After delivering over 394,000 electric cars last year, up 21% from 2022, VW looks to regain momentum to compete with leaders like Tesla.
Although this is a record for Volkswagen, 21% YOY growth is far behind most rivals. Tesla set a new record, delivering nearly 1.81 million EVs last year. Volvo sold over 113,000 EVs last year. That’s up 70% compared to 2022 (66,749) and 16% of its total sales.
Volkswagen’s EVs accounted for 8.3% of its total sales last year. That’s at the lower end of its 8% to 10% guidance (already down from 11%). Antlitz said EV orders fell to 150,000 in Europe in October, 50% less than the 300,000 in 2022.
The company’s financial leader confirmed VW is seeing some reluctance in Europe and potentially in the US, too.
VW cut shifts and laid off temporary workers last year in Europe as it struggled to keep up with EV leaders like Tesla and incoming Chinese rivals like BYD.
With larger vehicles, including an electric SUV and pickup, hitting the US market, VW hopes to regain momentum.
Electrek’s Take
VW cut EV prices earlier this week in Europe, hoping to compete with the surging Tesla. The company also fell behind Tesla in US market share for the first time last year.
Tesla secured 4.2% of the US auto market share last year compared to Volkswagen’s 4.1%. Despite this, VW’s ID.4 did climb four spots for the fifth best-selling EV in the US last year, behind the Mustang Mach-E, Chevy Bolt EV, Tesla, Model 3, and Tesla Model Y.
Will a rugged electric pickup and SUV help VW regain momentum as the US market shifts to EVs? That’s what the automaker is hoping for.
With plans to continue investing around a third of investment into ICE vehicles, it could set VW further behind.
While VW’s EV sales accounted for around 8% of total volume, many automakers are already achieving double-digit, or 100%, sales share.
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The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
- The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
- A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
- A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
Read more: Cleantech investments to top fossil fuels for the first time in 2025
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Chevy just introduced new deals on the Equinox and Blazer EV models to make them even more affordable. With 0% interest and a new trade-in bonus, Chevy is offering over $5,000 in savings.
Chevy adds new Equinox and Blazer EV deals in January
Although the Chevy Equinox EV is already “the most affordable” EV in its class with over 315 miles range, it’s getting even cheaper.
Earlier this week, Chevy launched new deals on the 2024 Equinox and Blazer EV models. According to a note sent to dealers, viewed by CarsDirect, the electric SUVs are now available with 0% APR financing for 60 months. You can also choose from 0.9% AP for 72 months and 2.9% APR for 84 months.
This marks the best financing offer on Chevy’s newest EVs to date. The previous best rates were 0.9% APR for 60 months, 3.9% for 72 months, and 5.9% for the longer 84-month option.
On a 7-year $45,000 loan, online auto research firm CarsDirect estimates the new deals amount to around a $5,200 price cut. The lower APR rates are already offered on the Chevrolet Silverado EV pickup.
In addition, Chevy is offering a trade-in bonus of up to $3,000 on the Silverado EV and $1,000 on the electric Equinox and Blazer models. If you choose to lease, the bonus is cut in half: $1,500 for the Silverado and $500 for the electric SUVs.
Chevy’s new EV deals started on January 14 and run through March 3, 2025. The deals come as rivals like Hyundai and Ford recently launched new EV promotions.
On Thursday, Hyundai launched a new promo on the upgraded 2025 IONIQ 5, which includes monthly leases as low as $199 and a free ChargePoint home EV charger (or $400 charging credit). Meanwhile, Ford extended its “Power Promise” program earlier this month, which also includes a free home charger, among several other benefits.
The 2024 Chevy Equinox EV started at $41,900 with up to 315 miles range. Prices for the electric Chevy Blazer start at $43,690 with up to 279 miles range.
If you are ready to try out Chevy’s new electric SUVs for yourself, we’ve got you covered. You can use our links below to view offers on the Chevy Equinox, Silverado, and Blazer EV models near you.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss non-Tesla EVs getting Supercharger access, Cybertruck sales in the spotlight, Rivian getting some money from Biden, and more.
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