TOPLINE Volkswagen, one of the <a href="https://www.carlogos.org/reviews/largest-car-companies.html" target="_blank" rel="noreferrer noopener">world’s largest carmakers</a>, plans to accelerate its transition to electric vehicle production in Europe by 2030, joining an array of other global automakers seeking to move deeper into the electric vehicle market in the coming years to help meet EU emissions targets.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<ul class="wp-block-list"><li><a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">Volkswagen said Friday</a> that it expects all-electric vehicles to account for at least 70% of sales in Europe by 2030 — double its previous target of 35%.</li></ul>



<ul class="wp-block-list"><li>The automaker’s electric vehicle sales in the U.S. and China are targeted to reach 50% by 2030.</li></ul>



<ul class="wp-block-list"><li>Volkswagen also said it will invest about $19.1 billion in its electric vehicle programs by 2025.</li></ul>



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h3>



“We are stepping up the pace. In the coming years, we will change Volkswagen as never before,”&nbsp;<a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">said Ralf Brandstätter</a>, CEO of Volkswagen.



<h3 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h3>



The goal to increase electric vehicle production by 2030 matches the mandate by the&nbsp;<a href="https://www.reuters.com/article/us-climate-change-eu-transport/eu-to-target-30-million-electric-cars-by-2030-draft-idUSKBN28E2KM" target="_blank" rel="noreferrer noopener">European Commission</a>, the executive branch of the European Union, to have at least 30 million zero-emission vehicles on European roads by that year as part of its overall campaign to achieve carbon-neutrality in the EU by 2050.&nbsp;<a href="https://www.eea.europa.eu/data-and-maps/indicators/transport-emissions-of-greenhouse-gases/transport-emissions-of-greenhouse-gases-12#:~:text=In%202017%2C%20transport%20(including%20aviation,increased%20by%200.7%20%25%20in%202018." target="_blank" rel="noreferrer noopener">About 27% of EU greenhouse gas emissions</a>&nbsp;come from the transport sector, the Commission estimates, adding “The EU’s goal of climate neutrality by 2050 cannot be reached without introducing very ambitious measures to reduce transport’s reliance on fossil fuels.”&nbsp;



<h3 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h3>



To achieve its own electric vehicle sales goals, Volkswagen said it will release at least one new electric model car every year. Volkswagen joins a list of global automakers seeking to accelerate their own electric vehicle production goals.&nbsp;<a href="https://pressroom.toyota.com/toyota-to-debut-three-new-electrified-vehicles-for-u-s-market/" target="_blank" rel="noreferrer noopener">Japan’s Toyota</a>, is planning to have 40% of new global vehicle sales be electrified models by 2025 and raise that proportion to 70% by 2030. Last month,&nbsp;<a href="https://www.forbes.com/sites/palashghosh/2021/02/17/ford-motor-vows-to-sell-only-electric-cars-in-europe-by-2030/?sh=4fecdc08650c">Ford Motor said</a>&nbsp;it plans to invest $1 billion in an electric vehicle manufacturing facility in Germany, as part of its goal to sell electric cars exclusively in Europe and the U.K. by 2030.&nbsp;<a href="https://www.forbes.com/sites/michaeltaylor/2020/12/03/volvo-cars-to-be-all-electric-by-2030/?sh=6ce030ac33cb">Sweden’s Volvo</a>&nbsp;said last December that it will exclusively make electric vehicles by 2030.&nbsp;<a href="https://www.nytimes.com/2021/01/28/business/gm-zero-emission-vehicles.html" target="_blank" rel="noreferrer noopener">General Motors</a>&nbsp;said in late January that it will sell only emission-free vehicles by 2035. IHS Markit, a London-based data provider, said recently that<a href="https://ihsmarkit.com/research-analysis/ihs-markit-forecasts-global-ev-sales-to-rise-by-70-percent.html" target="_blank" rel="noreferrer noopener">&nbsp;global sales of electric vehicles</a>&nbsp;are estimated to have reached 2.5 million in 2020 and then projected to rise by 70% in 2021. This year, China and Europe will account for 44% and 28%, respectively, of global sales, followed by North America at 16%. In 2025, global sales will exceed 12.2 million, IHS Markit forecast.



<h3 class="wp-block-heading" id="h-big-number">BIG NUMBER</h3>



<a href="https://www.bloomberg.com/news/articles/2021-01-22/volkswagen-posts-12-2-billion-profit-in-resilient-pandemic-year" target="_blank" rel="noreferrer noopener">$12.2 billion</a>. That’s the profit recorded by Volkwagen in 2020, well ahead of analysts’ expectation of about $5.7 billion, but far below the $23 billion posted in pre-pandemic 2019. Volkswagen’s 2020 performance was boosted by soaring demand for luxury vehicles in China.



<h3 class="wp-block-heading" id="h-tangent">TANGENT</h3>



Volkswagen faces a fine of more than $119 million this year for<a href="https://www.cnbc.com/2021/01/23/volkswagen-profits-fell-automaker-missed-co2-emission-targets-in-2020.html" target="_blank" rel="noreferrer noopener">&nbsp;failing to meet</a>&nbsp;the European Union’s carbon dioxide emissions targets from its passenger car fleet last year.&nbsp;



<h3 class="wp-block-heading" id="h-further-reading">FURTHER READING</h3>



<a href="https://www.forbes.com/wheels/best/electric-cars/">Best Electric Cars For 2021</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/enriquedans/2020/12/06/the-moment-of-the-electric-vehicle-hasarrived/">The Moment Of The Electric Vehicle Has Arrived</a> (Forbes)



By Palash Ghosh, Forbes Staff

Volkswagen AG Headquarters Ahead of 2020 Earnings Announcement

Volkswagen Is The Latest Carmaker To Accelerate Its Electric Vehicle Ambitions

Thomas Schaefer, the 49-year-old CEO of Volkswagen Group South Africa, loves golf, running and wine, and says he would put his money into waste-to-energy projects, and horses. 



What has your focus been for business recently? 



Volkswagen in South Africa started over 65 years ago and has
been a part of South African history with iconic models like the Beetle, Citi
Golf and Kombi. Volkswagen has been the passenger car market leader for the
past eight years and had 23% market share in 2019. The factory in Uitenhage
will produce 162,000 Polos and Polo Vivos as well as 97,000 engines. 



In the rest of sub-Saharan Africa, we have unfortunately not
been as successful. But then again, no other manufacturer was really
successful, as 95% of all vehicles sold are used vehicles and not new. 



In 2016, Volkswagen decided to change that by reaching out
to those African countries that have the political will to make the required
changes that will bring industrialization and jobs. We have started assembly
operations in Rwanda, Kenya and Nigeria. Ghana is next and then hopefully,
Ethiopia. 



Those are small beginnings, but when Volkswagen started in
China in 1984, nobody expected it would be producing more than four million
vehicles per year in 22 factories today. 



If you had to invest capital into any venture, what would it be and why? 



I would invest in waste-to-energy projects. Apart from being
feasible, they tick some more boxes like job creation, conserving the
environment, reducing the need to dump waste in landfills and providing a
source of carbon neutral energy. 



Your biggest investment blunder yet? 



It My biggest was buying German Telekom shares after
privatization. 



What is your most prized investment, and why?



My house in Stuttgart [Germany]. It is rented out to an
American couple. 



When we were about to move to Hannover with my change over
to Volkswagen, the American Army decided to increase its presence in the
Stuttgart region and build up the Africa Corps. Since then, rental has gone
through the roof. 



What do you spend your money on mostly? 



My wife’s passion is horses. We own a smallholding and I can
say without a doubt that this has taken number one spending position. Other
than that, mainly food and wine. I can’t really spend much on cars. 



Your most recent expensive acquisition?



Our smallholding for the horses, plus all the equipment that
one needs such as quad bikes for the riding arena.&nbsp; 



What is your dream car? 



A Porsche 356.



Which is your favorite Volkswagen vehicle, and why? 



The Polo GTI. It is an unbelievable car that ticks all the
boxes – looks, feel, finish, power, handling and of course, value for money.



You cannot travel without your…? 



German wax earplugs. I need them to sleep on the plane. The
normal earplugs you get are all useless and hurt your ears.&nbsp; 



– Interviewed by Gypseenia Lion

Tag: Volkswagen Group

FORBES AFRICA SOCIAL MEDIA

Volkswagen Is The Latest Carmaker To Accelerate Its Electric Vehicle Ambitions

‘I Can’t Really Spend Much On Cars’