Volkswagen Strengthens Its Position in the Global Electric Vehicle Industry

The leadership position in the automotive industry in the near future will depend on the positions of companies in the segment of electric mobility, investments in technologies, and infrastructure. And it is more and more certain that the time for positioning is now, and investments must be continuous and flexible because everything is changing at a high speed.

The German giant Volkswagen is an example of powerful transformation through change, mobility and continuous investment in new technologies and research. The company is already part of the leading automotive vehicle manufacturers, along with Tesla and Chinese manufacturers SAIC Motors and BYD. But the strengthening of this position in the group of leading companies continues. Namely, Volkswagen started this year with ambitious investment projects, which will further contribute to the development of electric vehicles, but also the development of technologies and the necessary infrastructure.

In Spain, the German automobile giant announced a new factory for the production of electric vehicles and batteries, in the construction of which 10 billion euros will be invested. Construction of the factory will begin next year, and serial production is planned for 2026. According to the plans, 3000 new jobs will be created in this factory by 2030.

The announcement of a new factory in Spain, a country that is the second largest producer of cars in Europe, is a significant strategic step. Otherwise, the new investment will be in accordance with the “green agenda”, because, among other things, an agreement has been concluded with the Spanish group Iberdrola, for the acquisition of a solar park, for partial power supply of the battery factory. The company will invest 500 million euros in the Iberdrola solar park.

This is not Volkswagen’s only major investment project. Last month, Volkswagen launched a new company PowerCo for the production of batteries for electric vehicles. Through the new company PowerCo, Volkswagen will invest 20 billion euros in the construction of a new factory in Germany. It is a “new auto strategy”, as the CEO of Volkswagen AG, Herbert Diess himself, pointed out at the promotion of this investment, adding that it is a strategic turning point.

The new company PowerCo aims to lead the battery business globally. According to the plan, the company should achieve annual sales of 20,000 billion euros and employ 20,000 people in the European Union.

Volkswagen is not only positioning itself on the EU market. As one of the leading companies in the electric car segment globally, the company, through its subsidiary in the United States, Electrify America, has announced an investment in ultra-fast charging stations. This investment will double the number of ultra-fast chargers in three years, from the current 3,500 to 10,000 ultra-fast chargers.

In addition, Volkswagen plans to increase its initial investment in Electrify by about 2 billion dollars, and these funds will be invested until 2026.

Although the volatility of the markets is not to be neglected, as well as unfavorable indicators, such as high inflation in the United States, a new map of the automotive industry is being drawn now. The vision and courage to invest and take risks always turn out to be a good choice.