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The decision of the board of directors to bring the full electric pick-up and powerful SUV (R-SUV) to the US market was confirmed today by the management board, as the Wolfsburg-based DAX group announced.
These vehicles must be manufactured, manufactured and manufactured in the United States for domestic customers. A separate, independent company will be established in the United States before the end of this year. The first prototypes will be presented next year and array production will begin in 2026.
“Now that Volkswagen has overseen the transformation in the United States, we are now taking the opportunity to expand our position in one of the key market growth vehicles,” CEO Herbert Diess said. “The power supply provides a historic opportunity to enter the most exciting part of the pick-up and R-SUV as a Group, thus underscoring our ambition to be a major player in the US market.”
The Wall Street Journal had previously reported on the plans, citing people familiar with the board meeting agenda.
According to Volkswagen, success in key components of R-SUVs and pickups are key drivers of increasing profits in the United States and reaching a target market share of 10 percent.
To date, VW has had a small market share of less than 5 percent in the United States. However, group electric cars are sold better than cars with conventional drives. According to VW, it has a nearly 8 percent share in the American electric car market, holding second place behind Tesla. Thus, the emphasis is on electric vehicles, which VW sees as a historic opportunity to gain market share in the United States, VW CEO Herbert Diess said recently at a press conference.
From the 1960s until production ceased in 1980, the Scout SUV was a competitor to Land Rover, Jeep and Ford Bronco. VW acquired the Scout brand name rights by acquiring Navistar in 2020. Navistar was founded in 1985 when International Harvester, the owner of the Scout brand, left the business.
Volkswagen CEO: A fast-moving electric car business
In the electric business, Volkswagen will achieve the same level of profit as in the traditional business of combustion engine faster than planned. “We assume that the e-mobility business will have the same benefits as our combustion engine business sooner than planned,” said Volkswagen CEO Herbert Diess at the Annual General Meeting. “Because we supply our equipment with e-mobility, change plants more and more and also sell our technology to competitors like Ford,” the manager explained.
On the way to the highest margins in the e-commerce business, the Wolfsburg-based group relies heavily on the new SSP (Scalable Systems Platform). More than 40 million cars will be built on this in all group products. Reducing the difficulty is an important issue here: in a pilot project in Kassel, for example, a large cast section replaces 30 individual parts. VW is trying to apply this process to a new Trinity factory in Wolfsburg.
At her conclusion last year, Diess was satisfied with her speech to shareholders at the annual Annual General Meeting online. “We provided services in 2021. Thanks to good crisis management, we are financially stable and have strengthened our resilience,” said Diess. In 2022, too, VW will “move forward with vigor” and transformation, despite geographical and economic challenges.
In XETRA trading on Thursday, VW’s preferential share temporarily declined by 0.55 percent to 145.90 euros.
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