Volkswagen intends to cash $86 billion in manufacturing electric vehicles and its secondary technology in a five-year plan to put it ahead of Tesla. The company hopes that this strategy can put it on the roadmap as a developer of electric vehicles. The transition to electric vehicles is taking shape all over the global automotive production industry. Automated technologies are emerging on how to manufacture and run electric vehicles.
Volkswagen revealed its intention of cashing half of the promised $177 billion in the research and development department. The remainder will go into the manufacturing technologies to upgrade the production schemes and programs.
Last year, Volkswagen distributed over 10 million electric vehicles to the global market as part of its market share attraction strategy. This year the company has amended its strategies by resolving the weaknesses to create opportunities for its expansion in technology.
Some of the models that have emerged from the amendments include ID.3, which has come under scrutiny over technical complacency. Customers who purchased this model reported low quality and software issues as the impediments for it countering Tesla’s competitive models.
Nevertheless, the model performed exceedingly well in the market, making the company second in leading the European electric vehicle market. The CEO of Volkswagen, Herbert Diess, has been skeptical of its inadequacy to develop software that beats Tesla technologies.
Diess hopes that Volkswagen can surpass the threshold that Tesla has laid out in its production systems. He explained that if the company overcomes the technological impediments, it will stiff competition to Tesla, which has been enjoying the top position in the software upgrades.
Volkswagen secured €150 billion to implement the five-year plan it intends to achieve. Half of this capital will be for the upgrade of technology in the company. This capital is 2.5 times greater than the previous plan funding.
Volkswagen’s chief of operations stated that if they make a turnaround in their technology development, they will initiate massive competition between the ID models and Tesla cars. Additionally, the company will have the capacity to manufacture automated self-driving electric vehicles in its facilities.
Volkswagen announced that it would be using the articulated capital for automation of operations, developing a series of ID electric vehicles, and use the remainder to generate hybrid electric cars. The hybrids will stop the mileage range anxiety to accelerate its electric vehicles’ uptake by the customers. Finally, the Volkswagen plan does not include investment in the Chinese market. The company explained that its projects in this country run on the profits and revenues generated internally.