Volkswagen plans to sell rival electric Tesla



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Herbert Diess, head of the Volkswagen AG (VW) brand, speaks while being flanked by a VW ID Crozz electric car concept, left, and a Buzz camper ID during the first day of media presentation at the show IAA Frankfurt car rental in Frankfurt, Germany, on Tuesday 12 September 2017.

Dimon Dawson | Bloomberg | Getty Images

Herbert Diess, head of the Volkswagen AG (VW) brand, speaks while being flanked by a VW ID Crozz electric car concept, left, and a Buzz camper ID during the first day of media presentation at the show IAA Frankfurt car rental in Frankfurt, Germany, on Tuesday 12 September 2017.

Volkswagen intends to sell electric cars for less than 20,000 euros and protect German jobs by converting three factories to make rival Tesla a rival, announces an informed source of the projects.

VW and other manufacturers are struggling to adapt quickly enough to the stringent rules introduced after the automaker discovered diesel emission tests, and its managing director, Herbert Diess, warned last month that the German auto sector was endangered.

The plans for VW's electric car, known as the "MEB entry" and with a production volume of 200,000 vehicles, are to be discussed at a meeting of the Supervisory Board on November 16, said the source, adding that she also plans to deploy 100,000 vehicles. of the "ID Aero", a sedan of medium size.

The Wolfsburg-based automaker, who declined to comment on the plans, is also expected to discuss large-scale alliances with battery cell maker SK Innovation and rival Ford, the source said.

VW's shift in strategy comes as cities begin to ban diesel vehicles, forcing automakers to consider new ways to preserve 600,000 German industrial jobs, including 436,000 in automakers and their suppliers.

An electric van, the Buzz ID, is to be built in the VW factory in Hannover, where its T6 van is being manufactured, the source said.

To release Hanover's electric car production capacity, VW's cargo vans could be produced at a Ford factory in Turkey, the source added.

Exploratory talks

VW and Ford are in "exploratory talks" to develop autonomous and electric vehicles as part of an alliance to save them billions of dollars, reported Reuters last month.

German VW factories in Emden, Zwickau and Hanover, all of which are cars with combustion engines, will be electrified as part of the planned projects, the source said.

German automakers have agreed Thursday to spend up to 3,000 euros ($ 3,430) per vehicle to add more efficient exhaust gas filtering systems to reduce diesel emissions, but will not be able to reduce diesel emissions. have not prevented the ban on diesel vehicles from Cologne and Bonn.

EU lawmakers have agreed to seek a 35% reduction in car emissions by 2030 after a US report called for dramatic measures to slow global warming.

According to Diess, to reduce the average carbon dioxide emissions from its car fleet by 30% by 2030 in Europe, VW needs to increase its share of fully electric vehicles to 30% of new car sales.

The switch from combustion engines to electric cars would also cost 14,000 VW jobs by 2020, as the construction of an electric car takes less time than a conventional car and the jobs will be transferred abroad to the manufacturers. batteries.

In Europe, about 126 plants manufacture combustion engines and employ 112,000 people. The largest plant of this type in Europe is VW in Kassel.

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