VW Gears Up for Electric Van Revolution Starting 2028
In an exciting development for the world of electric vehicles, Volkswagen (VW) has announced that its entire van fleet will be electrified by 2028. The latest announcement, made by VW Commercial Vehicles boss Carsten Intra in an interview with the German Press Agency, comes after a significant shift in strategy for the company.
The conversion process will commence with the large Crafter van, with other models gradually joining the electric bandwagon in a well-coordinated rhythm. This move is expected to result in the creation of a comprehensive electric vehicle (EV) family under the project name "Space."
A Hurdle Overcome, an Opportunity Seized
The decision to electrify the van fleet is a direct result of a major order from Audi falling through. Initially, Audi had planned to build a top-of-the-line electric model in Hanover from 2026. However, Audi withdrew the order in September. In response, VW Commercial Vehicles was awarded the group contract to develop its own electric platform.
This turn of events presents an extraordinary opportunity for the division to fully electrify its fleet for the first time. Previously, the electric van still shared technology with the ID.4 electric SUV from the passenger car division, a situation that would not have allowed for an entire vehicle family to be developed on a single platform.
Radical Change in Strategy for VW Commercial Vehicles
The electrification of the van fleet marks a significant departure from VW Commercial Vehicles' previous strategy. According to Intra, the company has "completely changed its strategy," moving away from producing vehicles for other brands and focusing on its own products instead. This shift culminates in a vision for the next 15-20 years, helping the division more than compensate for the lost Audi order.
Despite a challenging global economic climate, VW Commercial Vehicles' business is currently thriving. Intra has high hopes for 2023, predicting it to be a "very strong year" with record earnings. The division's capacity is currently being utilized to the fullest, with existing orders still being fulfilled until mid-2024.
Quelling Concerns and Looking Forward
The ten billion euro savings package currently being negotiated with the Works Council in Wolfsburg does not affect the commercial vehicle division. The company is working on a separate strategy program, called Grip, which has been already yielding positive results since its launch in 2021.
VW Commercial Vehicles also plans to reduce its workforce from 15,000 to just over 10,000 employees by 2029, without resorting to redundancies by not filling vacant positions. By doing so, the company aims to ensure that its streamlined team can continue to excel.
Embracing the Electric Future
The aim is to have an electric share of more than 55% by 2030. The new electric platform, which is now being developed for the "Space" family, will enable the division to react flexibly to market demands.
Intra left it open as to when VW Commercial Vehicles will completely phase out the combustion engine, stating that the decision will ultimately be made by the customers. However, a market shift towards electric vehicles is expected to drive the eventual phasing out of internal combustion engines.
Looking Ahead
The launch of the ID California electric camper van based on the ID Buzz, which was announced for 2021, remains up in the air. Intra mentioned that the concept is "basically ready," but the vehicle will only be launched once there is a broad demand for electric camper vans. Based on current estimates, this likely won't happen until the second half of the decade.
While no specific timelines have been shared, it's clear that VW Commercial Vehicles is committed to making the transition to electric power across its entire van fleet. The development of a new electric platform and the company's dedication to producing environmentally-friendly vehicles indicate that Volkswagen is banking on a bright electric future for its commercial vehicles division.
