MUNICH – Volkswagen Group’s Chief Financial Officer Arno Antlitz stated rising battery materials prices imply it is going to be 2025 earlier than the automaker can construct some electrical autos on the similar revenue margins as combustion fashions.
“A lot of the margin parity depends on raw materials,” Antlitz instructed the Reuters Automotive Europe convention.
When VW launched its new electrification technique in July 2021, it stated it anticipated to succeed in margin parity between combustion engine and electrical autos “within the next two to three years.”
Now, Antlitz stated, rising supplies prices imply the profitability aim relies on VW making its personal batteries.
“We have not given up the topic of margin parity,” Antlitz stated. In “2025 and beyond we plan for margin parity,” notably with fashions that use VW’s personal batteries.
VW is “planning for significant positive margin” on a brand new EV mannequin, the ID2, that can go into manufacturing in Spain in 2025 and be priced from 25,000 euros, Antlitz stated.
The CFO additionally stated Eastern Europe was nonetheless prone to be the placement of its subsequent battery plant, and that it was in talks with particular areas.
The automaker had been anticipated to decide on a web site for an Eastern European plant final December, however its know-how officer stated in March it was ready to listen to extra from the European Union about what incentives can be accessible within the area earlier than making a last choice.
VW continues to be weighing choices for changing its Wolfsburg manufacturing facility in Germany to construct a brand new era of electrical autos known as Trinity, or constructing a brand new manufacturing facility for the fashions.
Antlitz stated the delay within the launch of the Trinity autos provides Volkswagen the chance to retrofit the prevailing Wolfsburg operations, probably at a decrease price than constructing a brand new 2-billion-euro manufacturing facility.
That funding determine just isn’t updated due to inflation, Antlitz stated.
Source: europe.autonews.com