Volkswagen Announces Major Steps Toward Electrifying Its Vehicle Fleet

20 April 2017 Dashboard Insights Blog

While fans of electrifying rides got a boost from the box office this week, fans of electrified rides are living in exciting times as well.

Volkswagen has delivered two major pieces of news in this space. First, it announced that after dipping its toes in the waters of the electric vehicle market with its current e-Golf, it will be jumping in headlong, releasing four new affordable electric vehicle models in coming years, including a crossover, a midsize SUV, a hatchback, and a sedan.  By 2020, Volkswagen is looking to release a new vehicle architecture underpinning these electric cars, with a target of one million sales of electric vehicles annually by 2025.

But how to convince Americans, living in the second largest automotive market in the world, to switch to electric vehicles? In the second piece of Volkswagen’s electric news, it announced that Electrify America, a Volkswagen subsidiary, will designate $300 million of its Dieselgate settlement to build electric chargers in 11 urban markets and on connecting highways across the United States. With range anxiety playing a role in limiting electric vehicles to short-range trips in the city, the development of a charger network spanning the United States may help ease electric vehicles into being the primary car for more and more households—especially if and when oil prices rebound from their current lows. This is especially true because, unlike Tesla’s Supercharger network, Volkswagen’s new chargers will be non-proprietary, meaning owners of non-Volkswagen electric vehicles will be able to use them. This should alleviate concerns that buyers of many brands of electric cars may have about spending thousands of dollars on a new car, only to fall on the wrong side of a Betamax/VHS charging divide.

So what does the market think about the future of electric vehicles? In another exciting sign for fans of electric cars, Tesla, the clear target when it comes to Volkswagen’s electric vehicle ambitions, surpassed both Ford and GM in market capitalization earlier this month. While this is pretty clearly a sign of future promise, rather than current fulfillment, it does show that investors are placing their bets on the continued electrification of the automotive market.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services