Volkswagen AG is "not scared" that its plan to electrify most of the group's 10 million car annual output over the next decade is overly ambitious, CEO Herbert Diess said Sept. 9.
Volkswagen plans to spend €30 billion through 2023 to produce a range of electric vehicles that can compete with combustion engine-powered cars on affordability. It is one of the biggest strategic changes in the company's history but some observers have questioned whether there is sufficient charging infrastructure, battery availability and consumer demand in place for the gambit to pay off.
Volkswagen's new logo is placed on top of the company's headquarters in Wolfsburg, Germany, on Sept. 9. |
"We are not scared. We are confident because if you then ask them what their alternative would be, then you don't get any answers," Diess said in response to a question from S&P Global Market Intelligence at the Frankfurt Motor Show.
"We are not scared because in Toyota Motor Corp. or some other competitors who were really also very slow and defensive about [electric vehicles], they are now in. They are looking for battery capacity, so we are right," Diess said.
Asked whether he had faced resistance from investors, Diess said: "We don't think so because this comes naturally. There is no real alternative to electric cars." The executive added that doubters should instead be asked how they would make a case for alternatives like mass-market hydrogen cars when they continue to face basic challenges such as supplying the fuel.
Volkswagen plans to launch 70 electrified models by 2028 and offer the common platform it has developed for its new I.D. range of electric-only cars to rival manufacturers. It has also entered into a joint venture with Swedish battery maker Northvolt AB to produce batteries at a new plant in Germany, which should begin production by early 2024. The carmaker acquired a 20% stake in Northvolt as part of the €900 million deal.
In an effort to turn the page on one of the darkest chapters in its eight decade history, the diesel emissions scandal that has cost it about €30 billion in fines and product recalls as well as the trust of many consumers, the company unveiled Sept. 9 a new logo to hail the start of a "more human and more lively" Volkswagen that brings a "new attitude," executives said in a press release.
Volkswagen's new logo retains the same shape but is more minimalistic, losing the 3D appearance of the VW letters, which now appear with no border in white on a navy blue background.
Ralf Brandstatter, COO for Volkswagen-branded cars, said in an interview that the dieselgate scandal had been a catalyst for the company's rebranding and the push into electrification that looks bolder than any of its rivals' more gradual approaches.
"We changed the culture and the company completely in the last four years and we want to demonstrate that not only inside, but also outside. Therefore it was logical to create a new brand design," Brandstatter said. "The brand design should transport internal cultural change to our customers also. More open, more transparent, more human and more responsible."

