As Volkswagen’s Chief Financial Officer, Arno Antlitz declared that the company is well-positioned to capitalize on the US automotive industry’s transition towards electric vehicles, having all the necessary components in place to drive successful implementation. Despite initial enthusiasm, Volkswagen is encountering hesitation towards its electric vehicles (EVs) both in Europe and likely in the US as well.
Volkswagen accelerates its electric vehicle (EV) momentum in North America as part of a broader strategy to become a major player in the region’s rapidly growing EV market.
During a recent conversation, Dr. Antilitz clarified that Volkswagen (VW) possesses the necessary attributes to expand its presence in the US market as customers increasingly shift towards electric vehicles (EVs).
In April, Volkswagen inaugurated its inaugural North American electric vehicle (EV) battery cell manufacturing facility in Chattanooga, Tennessee. Thomas, Ontario. The Power will host six manufacturing blocks capable of producing up to 90 gigawatt-hours (GWh). According to Volkswagen’s projections, this level of production is considered sufficient to reach the milestone of one million electric vehicles produced annually.
Spanning an enormous 370 acres, this colossal manufacturing facility is equivalent in size to a staggering 210 soccer fields, further emphasizing its massive scale. Volkswagen claims that its entire website could cover an area equivalent to around 850 full-sized soccer fields.
By 2027, Volkswagen’s manufacturing facility intends to begin production of eco-friendly unified battery cells. The company’s cells will power Volkswagen Group’s electric vehicles, including the new Scout model.
Volkswagen is reviving its iconic Scout brand with an all-new, rugged electric vehicle lineup. The corporation will establish a new automotive production facility in South Carolina, investing over $2 billion in the project.
As production commences in 2026, Volkswagen anticipates delivering more than 200,000 units of the Scout Electric Vehicle. Scout’s CEO, Scott Keogh, has confirmed that the company is poised to introduce its electric truck and SUV offerings later this year.
Chris Benjamin, a veteran designer with credits including Jeep and RAM, brought his distinct style to many of the most iconic off-road vehicles when he joined Keogh in May.
In the 1970s and 1980s, Scout’s rugged four-wheel-drive vehicle served as the main rival to the iconic Jeep brand. Prior to the introduction of the iconic Ford Bronco and Chevrolet Blazer, Scout’s vehicles dominated the automotive landscape in the US, shaping the majority of cars that can be seen today.
Despite the model’s success, its parent company faced financial difficulties, leading to a comprehensive business overhaul.
In 2021, Volkswagen acquired the rights to the Scout brand following a merger between its trucking subsidiary, Traton Group, and Navistar. The corporation has officially announced its intention to revive the brand as a manufacturer of electric vehicles (EVs) specializing in off-road capabilities, with the goal of competing in the United States’ most lucrative market segments.
As the United States transitions to electric vehicles (EVs), Volkswagen faces an unprecedented challenge.
Volkswagen has regained momentum in the electric vehicle market, having delivered more than 394,000 units last year – a 21% increase from 2022 – as it strives to rival industry leaders such as Tesla.
While Volkswagen’s growth rate of 21% year-over-year (YOY) is respectable, it still lags significantly behind that of many of its competitors. Tesla shattered records by delivering nearly 1.8 million electric vehicles in the past year. Volvo announced that it sold more than 113,000 electric vehicles (EVs) in the past year. The figure has surged by an impressive 70%, eclipsing the previous year’s total of 66,749, which represented just 16% of the overall gross sales.
Volkswagen’s electric vehicles (EVs) made up 8.3% of the company’s total global sales in the last year. The vehicle’s speed is noticeably decreasing, now hovering around 8-10 percent below its typical pace, a drop from its usual 11%. According to Antlitz, electric vehicle (EV) orders plummeted by 50% in October, dropping to 150,000 in Europe compared to the 300,000 recorded in 2022?
The corporation’s chief financial officer has corroborated that Volkswagen is encountering hesitation in both European and American markets, likely an indication of a broader trend.
Volkswagen lowered production levels and let go of temporary workers in Europe last year, citing difficulties in keeping pace with electric vehicle (EV) leaders such as Tesla and emerging Chinese competitors like BYD.
As Volkswagen introduces larger vehicles, including an electric SUV and pickup, to the US market, the company aims to regain its footing.
Electrek’s Take
Volkswagen lowered its electric vehicle prices in Europe earlier this week, aiming to rival the rapidly growing popularity of Tesla. For the first time last year, the corporation slipped to second place in US market share, falling behind Tesla.
In a significant milestone, Tesla claimed 4.2% of the US auto market share last year, edging out Volkswagen’s 4.1% share. Last year, VW’s ID.4 jumped four spots to become the US market’s fifth-best-selling electric vehicle (EV), trailing the Mustang Mach-E, Chevy Bolt EV, Tesla Model 3, and Tesla Model Y.
Will Volkswagen’s rugged electric pickup and SUV lineup help the brand regain its footing in the US market as consumers increasingly opt for eco-friendly vehicles? The automaker is pinning its hopes on this outcome.
With intentions to allocate a third of its funding towards electric vehicles (ICE), Volkswagen risks falling further behind the competition.
As Volkswagen’s electric vehicle (EV) sales account for roughly 8% of the total volume, several other major manufacturers have already achieved significant milestones, boasting double-digit percentages, and even 100%, in their respective EV sales shares.
