Volkswagen has stepped up its shift toward the electric auto and is planning to invest over €20 billion or $24 billion in the zero-emission vehicles by 2030 as it tries to challenge the pioneer in the industry Tesla in creating mass market vehicles.
The VW Group will continue to offer standalone internal-combustion powertrains, but it will have at least one hybrid or electric version of each of its roughly 300 models by then. On the eve of the Frankfurt Auto Show, VW Group chairman Matthias Müller committed his company to electrifying its entire lineup by 2030.
That is because the Volkswagen brand is accelerating into this new era by developing a new generation of innovative electric vehicles - the I.D., I.D.
"We are having some thoughts regarding "make or buy" concerning the electric chain of motors, we will move the components part back to within the company, but not the battery chemicals part", said the PSA executive Patrice Lucas.
Volkswagen projects that one in four of their vehicles will be electric by 2025.
Carmakers are spending heavily to develop and improve electric cars to meet increasingly tough government regulations aimed at limiting air pollution.
"As early as 2020 we aim to sell 100,000 all-electric Volkswagens [per year]".
VW will not be dropping combustion engines entirely yet as the infrastructure for electric vehicles is now not in place, Mueller told the BBC.
Müller said that making exciting cars is the key to getting customers to switch to electric propulsion, and the model we think most likely to do that arrives in 2022.
Before the major scandal that erupted two years ago because lowering Volkswagen indicators of harmful emissions, the automaker took nearly no notice of the market development of electric vehicles and unmanned vehicles. "Today's vehicles are earning us the money we need to invest billions in the future", he said.
The concept's styling is a mix between an SUV and a four-door coupe, according to the brand, with the ID Crozz' design highlighted by a wide bonnet, cleanly contoured wings and roof with a high-gloss black exterior finish.
Luxury brand Audi, the group's largest earnings contributor, will start selling its first all-electric SUV in 2018 and add two more purely battery-powered vehicles in the next three years.
The company set a target of saving €4 billion (Dh17.53bn) by 2025 to help fund the cost of its electric cars.