Volkswagen cuts annual investment and increases focus on electric vehicles

Volkswagen has announced its diesel strategy will now focus on the most advanced technologies and it will develop a standardised electric architecture for passenger cars and vans.

There will also be a new approach for the next generation of the Phaeton and investments are also to be reduced by some one billion euros per year.

The newly-formed Volkswagen Brand Board of Management outlined its plans as the company comes to terms with the fallout from the emissions scandal.

CEO Dr Herbert Diess said: “The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program.”

It was decided to switch over to installing only diesel drives with SCR and AdBlue technology in Europe and North America as soon as possible.

Diesel vehicles will only be equipped with exhaust emissions systems that use the best environmental technology.

There will be a focus on plug-in hybrids with an even greater range, high-volume electric vehicles with a radius of up to 300 kilometers, a 48-volt power supply system (mild hybrid) as well as ever more efficient diesel, petrol and CNG concepts.

A new standard with regard to connectivity and driver assistance systems is to be defined.

An electric toolkit for future use in compact segment vehicles is to be developed based on the experience gained with existing vehicle architectures. This will be a multi-brand toolkit suitable for both passenger cars and light commercial vehicles and will thus leverage synergies from other electric vehicle projects in the Group, said Volkswagen.

The standardised system will be designed for all body structures and vehicle types, thus allowing particularly emotional vehicle concepts, and will enable an all-electric range of 250 to 500 kilometers.

Meanwhile, the future generation of the Phaeton will be the flagship for the brand’s profile over the next decade, it says.
In light of this, the Board of Management has redefined the current project. The specification features a pure electric drive with long-distance capability, connectivity and next- generation assistance systems as well as an emotional design.

Diess said: “We are very aware that we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency program and in giving our product range a new focus.”

He continued: “Together with my Board of Management colleagues and the entire team we are working at top speed on these issues. Time and again, the Volkswagen team has proved it stands united and is fully focused on shaping the future, particularly when times are tough. We have now laid the further foundations for that.”