CEO of Volkswagen tells electric vehicle shift won't hurt margins

Published:

On: Oct 2019

The Chief executive officer of Volkswagen, Herbert Diess said in a statement that the company does not expect any shift in the production toward electric vehicles aimed at reserving billions of euros in European pollution fines to damage its profit margins. He claimed that, “our major advantage is that all our brands have the same platform for the electric products as well as the same batteries that we buy in China.”

He said that the German car manufacturers anticipated to sell around 20,000 Audi e-Tron in the year 2019, including the first year’s production of the electric Porsche Taycan which was already sold out. Volkswagen ID.3 orders which is said to be the group’s currently released compact electric model, are already gathering the production planned until mid-2020.

Previous month at Frankfurt auto show the premium automakers of Germany marketed electric cars because their flagship models to attract customers away from gas-guzzling SUVs. Diess stated that he was worried by the ongoing trade dispute between the United States of America and China, which was causing a drop in VW’s Chinese sales even if its market share in the country had been growing in the previous six months, that reaching about 19 percent.

In any case, VW does not plan to cut its exposure to the market of China, said by Mr. Diess. Despite this, he emphasizes that Volksis not planning to minimize its efforts and also cut down vulnerability in the Chinese market.

In the year 2017 press conference, the firm said that it would invest around $40 billion into electric cars. Since then, it has stuck to its statement by investing in the Audi e-Tron, Porsche Taycan, electric Beetle, as well as other electric vehicles. But, it has developed electric cars in large amount in order to avoid billions of euros in European pollution fines.