Volkswagen stated on Monday that it will invest an additional $7.1 billion on electrification initiatives in North America over the next five years.
VW plans to use the funds to "[expand] its product portfolio, regional R&D, and production capabilities," according to a press release, with the goal of having 55 percent of its US sales be electric vehicles by 2030. Over the same time period, the business plans to reduce its internal combustion manufacturing capacity, switching American assembly plants to create the ID.4 in 2022, the ID. Buzz in 2024, and a yet-to-be-released SUV in 2026.
According to the corporation, 90% of the vehicles it sells in North America are already produced in the country. Its manufacturing plants in Chattanooga, Tennessee, have already begun the process of electrification, with operations in Pueblo and Silao, Mexico, expected to be operational by the middle of the decade.
VW is also spending big on batteries, with more than $2.7 billion already committed in North American supplier agreements ahead of the ID'4's introduction. The business also expects to establish its Battery Engineering Lab (BEL) in Chattanooga in May and is exploring building a battery manufacturing factory in the United States, though that is still in the early stages of development.
Drivers are already benefiting from these efforts. OTA updates and new software features like plug-and-charge, which automates the transaction portion of recharging on a public station by allowing drivers to simply plug in without having to swipe a debit card or fiddle with NFC readers, will be available later this year, according to Scott Keogh, President and CEO, Volkswagen Group of America.