/ Electric Cars

VW Shifts To EV's As It's Set To Spend $40 Billion Dollars To Make People Forget About Dieselgate

Volkswagen is taking the flight path of the Phoenix as is it seeks to become a leader in the production of electric vehicles. While it seems VW may or may not be reacting to Dieselgate, such a momentous shift away from its traditional modus operandi is usually made over a number of years.

So its fair to assume this transition was not a reaction to Dieselgate at all, more so it was a reaction to stringent new emissions laws that will hit ICE era cars the hardest of all.

VW is preparing to open it's war chest to the tune of $40 billion to be spent on the development of EV's, new mobility services and autonomous driving technology.

EV's will sit alongside side existing ICE era petrol and diesel cars, the first VW car will hit retail by 2019, the I.D. is a hatchback the size of a Golf.

The I.D. will be manufactured in a purpose-built $1bn facility in Zwickau, Germany. The factory will also serve as a hub for sister brands, Audi, SEAT and Skoda.

VW is drawing up plans to build EV's in China by 2025, this will require extra spending of $10 billion. VW has set a global target of 100,000 EV sales by 2020.

The ultimate goal, for VW, is to disrupt the gains made by disruptive companies, Tesla is the key  EV benchmark often quoted.