
<p id="h-topline"><strong>TOPLINE</strong> Volkswagen, one of the <a href="https://www.carlogos.org/reviews/largest-car-companies.html" target="_blank" rel="noreferrer noopener">world’s largest carmakers</a>, plans to accelerate its transition to electric vehicle production in Europe by 2030, joining an array of other global automakers seeking to move deeper into the electric vehicle market in the coming years to help meet EU emissions targets.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<ul><li><a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">Volkswagen said Friday</a> that it expects all-electric vehicles to account for at least 70% of sales in Europe by 2030 — double its previous target of 35%.</li></ul>



<ul><li>The automaker’s electric vehicle sales in the U.S. and China are targeted to reach 50% by 2030.</li></ul>



<ul><li>Volkswagen also said it will invest about $19.1 billion in its electric vehicle programs by 2025.</li></ul>



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h3>



<p>“We are stepping up the pace. In the coming years, we will change Volkswagen as never before,”&nbsp;<a href="https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-is-accelerating-transformation-into-software-driven-mobility-provider-6878" target="_blank" rel="noreferrer noopener">said Ralf Brandstätter</a>, CEO of Volkswagen.</p>



<h3 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h3>



<p>The goal to increase electric vehicle production by 2030 matches the mandate by the&nbsp;<a href="https://www.reuters.com/article/us-climate-change-eu-transport/eu-to-target-30-million-electric-cars-by-2030-draft-idUSKBN28E2KM" target="_blank" rel="noreferrer noopener">European Commission</a>, the executive branch of the European Union, to have at least 30 million zero-emission vehicles on European roads by that year as part of its overall campaign to achieve carbon-neutrality in the EU by 2050.&nbsp;<a href="https://www.eea.europa.eu/data-and-maps/indicators/transport-emissions-of-greenhouse-gases/transport-emissions-of-greenhouse-gases-12#:~:text=In%202017%2C%20transport%20(including%20aviation,increased%20by%200.7%20%25%20in%202018." target="_blank" rel="noreferrer noopener">About 27% of EU greenhouse gas emissions</a>&nbsp;come from the transport sector, the Commission estimates, adding “The EU’s goal of climate neutrality by 2050 cannot be reached without introducing very ambitious measures to reduce transport’s reliance on fossil fuels.”&nbsp;</p>



<h3 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h3>



<p>To achieve its own electric vehicle sales goals, Volkswagen said it will release at least one new electric model car every year. Volkswagen joins a list of global automakers seeking to accelerate their own electric vehicle production goals.&nbsp;<a href="https://pressroom.toyota.com/toyota-to-debut-three-new-electrified-vehicles-for-u-s-market/" target="_blank" rel="noreferrer noopener">Japan’s Toyota</a>, is planning to have 40% of new global vehicle sales be electrified models by 2025 and raise that proportion to 70% by 2030. Last month,&nbsp;<a href="https://www.forbes.com/sites/palashghosh/2021/02/17/ford-motor-vows-to-sell-only-electric-cars-in-europe-by-2030/?sh=4fecdc08650c">Ford Motor said</a>&nbsp;it plans to invest $1 billion in an electric vehicle manufacturing facility in Germany, as part of its goal to sell electric cars exclusively in Europe and the U.K. by 2030.&nbsp;<a href="https://www.forbes.com/sites/michaeltaylor/2020/12/03/volvo-cars-to-be-all-electric-by-2030/?sh=6ce030ac33cb">Sweden’s Volvo</a>&nbsp;said last December that it will exclusively make electric vehicles by 2030.&nbsp;<a href="https://www.nytimes.com/2021/01/28/business/gm-zero-emission-vehicles.html" target="_blank" rel="noreferrer noopener">General Motors</a>&nbsp;said in late January that it will sell only emission-free vehicles by 2035. IHS Markit, a London-based data provider, said recently that<a href="https://ihsmarkit.com/research-analysis/ihs-markit-forecasts-global-ev-sales-to-rise-by-70-percent.html" target="_blank" rel="noreferrer noopener">&nbsp;global sales of electric vehicles</a>&nbsp;are estimated to have reached 2.5 million in 2020 and then projected to rise by 70% in 2021. This year, China and Europe will account for 44% and 28%, respectively, of global sales, followed by North America at 16%. In 2025, global sales will exceed 12.2 million, IHS Markit forecast.</p>



<h3 class="wp-block-heading" id="h-big-number">BIG NUMBER</h3>



<p><a href="https://www.bloomberg.com/news/articles/2021-01-22/volkswagen-posts-12-2-billion-profit-in-resilient-pandemic-year" target="_blank" rel="noreferrer noopener">$12.2 billion</a>. That’s the profit recorded by Volkwagen in 2020, well ahead of analysts’ expectation of about $5.7 billion, but far below the $23 billion posted in pre-pandemic 2019. Volkswagen’s 2020 performance was boosted by soaring demand for luxury vehicles in China.</p>



<h3 class="wp-block-heading" id="h-tangent">TANGENT</h3>



<p>Volkswagen faces a fine of more than $119 million this year for<a href="https://www.cnbc.com/2021/01/23/volkswagen-profits-fell-automaker-missed-co2-emission-targets-in-2020.html" target="_blank" rel="noreferrer noopener">&nbsp;failing to meet</a>&nbsp;the European Union’s carbon dioxide emissions targets from its passenger car fleet last year.&nbsp;</p>



<h3 class="wp-block-heading" id="h-further-reading">FURTHER READING</h3>



<p><a href="https://www.forbes.com/wheels/best/electric-cars/">Best Electric Cars For 2021</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/enriquedans/2020/12/06/the-moment-of-the-electric-vehicle-hasarrived/">The Moment Of The Electric Vehicle Has Arrived</a> (Forbes)</p>



<p><em>By Palash Ghosh, Forbes Staff</em></p>


Volkswagen AG Headquarters Ahead of 2020 Earnings Announcement

Volkswagen Is The Latest Carmaker To Accelerate Its Electric Vehicle Ambitions

<p>Ask an American what type of vehicle they prefer and most will say &#8220;SUV&#8221; or &#8220;crossover.&#8221; Increasingly that&#8217;s true around the globe, too. With more fuel-efficient engines and lots of flexibility, utility vehicles are fast becoming the world&#8217;s favorite family car.</p>
<p>SUV sales rose 12% globally in 2017, outpacing the overall industry, which rose 3%. Traditional passenger car sales, meanwhile, fell 2%, according to industry consultant LMC Automotive. And that trend&#8217;s been happening for a while: Since 2013, SUV sales are up 87% and car sales are down 8%, says LMC.</p>
<p>The market shift is unmistakable, but for now, at least, small, economical sedans still outsell SUVs on a worldwide basis.</p>
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<p>The most popular car in the world &#8211; of all time, in fact, &#8211; is the Toyota Corolla, with more than 43 million units sold worldwide since 1966. It&#8217;s built at 16 plants worldwide, including Toyota plants in Mississippi and Canada. Toyota sold 1,160,495 units of the efficient and reliable compact in 2017, easily beating the Honda Civic and Volkswagen Golf, ranked 2nd and 3rd, which sold 833,017 and 788,044 vehicles, respectively, according to LMC data.</p>
<p>But it&#8217;s worth noting that an SUV, Toyota&#8217;s RAV4, almost broke into the top three with global sales of 786,580 units. Two other SUVs, the Honda CR-V and Ford Escape, also made the top 10. Ford&#8217;s F-Series pickups were also among the top sellers, primarily due to their popularity in North America.</p>
<p>&#8220;Globally, small cars still win when you look at the volume because they dominate many markets,&#8221; said Jeff Schuster, senior vice president of global forecasting at LMC. But the growth of SUVs is a worldwide trend that&#8217;s picking up steam. &#8220;Back in 2013 when we did this, there were only four SUVs in the top 20. In 2017, that number grew to seven and we see continued growth ahead.&#8221;</p>
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<p>Other SUVs in the Top 20 include the Nissan Qashqai (No. 12), Hyundai Tuscon (No. 16), Volkswagen Tiguan (No. 17) and China&#8217;s Great Wall Motors&#8217; Haval H6 (No. 20).</p>
<p>Click <a href="https://www.forbes.com/pictures/5a539935a7ea431690104625/the-worlds-best-selling-c/" target="_blank" rel="noopener">here</a> for a full list of the world&#8217;s 20 most popular vehicles. &#8211; <em>Written by <span class="fs-author-name contrib-byline-author speakable-author"><a href="https://www.forbes.com/sites/joannmuller/" target="_blank" rel="noopener" data-ga-track="contrib block byline">Joann Muller</a></span><span class="comma">, </span><span class="contrib-byline-type"><span class="fs-text-s forbes-staff">FORBES STAFF</span></span></em></p>


Tag: Volkswagen Golf

FORBES AFRICA SOCIAL MEDIA

Volkswagen Is The Latest Carmaker To Accelerate Its Electric Vehicle Ambitions

The World’s Most Popular Cars In 2017 Included Fewer Cars, More SUVs