Volkswagen boss Herbert Diess spoke with CNN Business at the International Automobile Exhibition in Munich, where the company revealed ID. LIFE, a concept car that represents Volkswagen's (VLKAF) vision of a fully electric small family car costing around 20,000 Euros (23,720 USD).
During an interview with Anna Stewart of CNN Business on Monday, Diess discussed why Volkswagen aims to have at least 50% of its vehicle sales be electric by 2030. He acknowledged that some of their competitors have more ambitious targets, but argued that Volkswagen is already leading in Europe and is quickly becoming the number two player in the US and China.
Diess explained that the company does not plan to abandon the production of cars with internal combustion engines altogether, as they are necessary in certain parts of the world. He acknowledged that electricization is not a solution for all regions. He also added that in Latin America, electric cars may not be the solution to climate change, as the natural solution is to use CO2-neutral biofuels, which still require a combustion engine.
When asked about the global chip shortage affecting many automakers (including Volkswagen itself), Diess acknowledged that the issue has worsened and Volkswagen had expected an easing after the summer break, but the Covid-19 crisis in Malaysia impacted some of their suppliers and factories. He assured that the situation should improve by the end of the month.
Regarding autonomous technology, Diess mentioned that autonomous vehicles will mean a more significant transformation in the industry, with cars used by more people in different ways. He also mentioned that the commercial potential is massive and that Volkswagen is preparing to enter the market with autonomous technology by 2025. He emphasized that now is the time to invest and prepare.
In addressing Tesla's CEO Elon Musk, Diess stated that he respects what Musk has achieved and believes he is a brilliant individual, but there is no comparison between the two. He elaborated that Tesla has a clear focus on its history, while Volkswagen is committed to being prepared for the future.
The interview was edited for length and clarity.
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Additional Info:
- A recent report indicates that the global chip supply chain crisis may last until the end of 2023.
- Volkswagen aims to become the top-selling EV brand worldwide by 2025 with an expected 25-30 million EV units on the roads by 2030.
- The company plans to achieve these goals by expanding its electric vehicle range, investing in battery technology, and partnering with other automakers and technology companies.
- Volkswagen also aims to increase its sustainable investments to 10 billion euros by 2025, with a focus on electrification, digitalization, and autonomous driving.
- The company's strategy includes a massive battery investment of 100 billion euros by 2030.
- By 2025, Volkswagen expects to have a charging network of 25,000 direct current (DC) chargers in Europe, over 1,800 in the US, and over 10,000 in China.
