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Here’s how Volkswagen plans to outflank Tesla
Volkswagen brand is certain that it can become the global No. One seller of electrical cars, leaving EV pioneer Tesla Motors in its rear-view mirror.
VW brand chief Herbert Diess said he expects the brand will achieve its aim to sell one million battery driven vehicles annually by 2025. He also said is certain VW can accelerate past Tesla in the EV market because its fresh I.D. family of battery-powered cars will be able to do everything Tesla models can and “in some cases more.”
Diess believes the strength of its industry-leading joint ventures in China, the fattest market for electrical cars, will give it the scale effects it needs to outcompete Tesla by suggesting mass-market battery powered vehicles at a lower price than the upcoming Model Three.
Tesla, which sells the Model S sedan and Model X crossover, is moving into the mainstream market with the Model three compact sedan and CEO Elon Musk targets one million sales by 2020. “Naturally Tesla comes from a high price positioning originally, but it’s moving downmarket and we have the clear purpose with our fresh architecture to put a stop to Tesla,” Diess said.
“We will inject with models that are below even 30,000 euros or dollars, as well as some that certainly are placed far higher, and clearly want to be market leader,” Diess said at the brand’s annual press conference on Friday.
Paris Motor Demonstrate
The VW I.D. concept previews an all-electric autonomous future . coming in 2025
According to Volkswagen, the all-electric I.D. concept rolling out at the two thousand sixteen Paris motor display portends many Big Things. Attempt on for size two hundred fifty to toughly three hundred seventy five miles of range, to begin with, when the car .
VW has now signed off on three battery electrical models based on its fresh modular electric-vehicle architecture. The design, technical concept and the sourcing of central components will be determined be the end of the year.
The cars will come to market in two thousand twenty and will be a Golf-sized hatchback and two SUVs, one the size of a Tiguan and the other the size of the Tiguan Allspace suggesting seven seats. The models will be the very first members of the I.D. family.
China is key to VW’s electrified plans. The VW brand predominates the passenger car volume market, the world’s largest, through joint ventures with Very first Auto Works and SAIC Motor. The joint ventures built just over three million vehicles locally last year in nine production plants. The ID Crozz SUV concept, shown last month at the Shanghai auto display, will be the core EV for China commencing 2020.
“China will be the leading market for electromobility in the coming years, so we will likely go after with local production toughly half to three quarters of a year later (following Germany),” Diess said.
Tesla, which said the Model three will embark at $35,000 before incentives, has no Chinese manufacturing fucking partner, albeit China’s tech giant Tencent recently boosted the company’s political capital in the country by acquiring a five percent stake.
Detroit Auto Showcase
VW I.D. Hum concept previews electrical Microbus-styled MPV
Volkswagen took the wraps off the classic Microbus-styled I.D. Whirr (cough, cough) concept at the Detroit auto demonstrate, previewing one of the Modular Electrical Drive Kit (MEB) platform electrical vehicles .
Volkswagen Group China boss Jochem Heizmann said in March he estimates sales of plug-in hybrids and battery electrical vehicles to grow at an average annual rate of sixty percent in the country over the four years through 2020, reaching a total of two million units. Five years later he expects that figure to hit six million.
Volkswagen is not just the thickest player in terms of volumes. Its joint ventures are very successful financially as well. Last year FAW-Volkswagen and SAIC-Volkswagen earned pretax margins of 13.6 percent and 17.6 percent, respectively, putting them on par with Porsche. This level of income means the joint ventures can afford to invest around four billion euros in their operations in two thousand seventeen with cash generated from their own businesses.
“That’s why we are very certain that we can stop Tesla’s expansion in the volume market, since we are significantly better placed and have a considerably higher capacity to achieve scale effects,” Diess said.
To ensure the vehicles remain affordable, VW will not go after the treatment of BMW by using lightweight carbon-fiber reinforced plastic to reduce weight and lengthen range.
“With electrified cars you can recuperate most of the kinetic energy, so the spectacle and efficiency gains [of lightweight material] isn’t as big as it is with combustion engine-powered cars,” r&d chief Frank Welsch told reporters. “Since the necessity isn’t so superb, and CFRP remains expensive, we are leaving it.”