Volkswagen AG is working to further their electric vehicle division. Following its emissions manipulation scandal earlier in the year, the carmaker is making plans to integrate flat batteries in their cars as a way to elevate sales.
The plans include developing an internal architecture for their vehicles that allows for the installation of such a battery. Volkswagen electric vehicles’ demand is expected to increase as costs of acquisition decline and the range of a battery-powered vehicle increase, per an internal company newsletter.
Volkswagen is still fighting against the fallout of the news that it cheated on pollution tests with diesel vehicles. Software was engineered to lower the level registered of nitrogen oxide emissions when the car was being evaluated. This software had been installed in approximately 11 million cars globally. The automaker has budgeted 6.7 billion Euros for recall costs. Costs of possible regulatory fines and potential lawsuit damages have not been accounted for in that figure.
Deliveries of Volkswagen vehicles are projected to decline for the first time in 11 years. The scandal has been hurting demand, and on top of weak economies in other markets like Brazil and Russia, sales have not been good for the manufacturer.
Sales fell 4.5 percent through November, and it is unlikely that the company’s sales will surpass last year’s 6.12 million units. The increased investment in Volkswagen electric vehicles could help boost their overall sales in the future and mitigate fallout from any negative scenario.
Due to this, Volkswagen is still looking forward and also investing in the future through other car technologies. A new division, aptly named “New Volkswagen,” has been established to facilitate digital features in connected vehicles. This is in response to Silicon Valley groups like Apple and Alphabet working to enter the auto industry.
With growth forecasted for Volkswagen electric vehicles, now is the time to keep moving forward. Herbert Diess, Volkswagen’s brand chief, was quoted as saying, “The automobile world is changing dramatically and new players have unbelievable resources. Now it’s important to revamp and let things go to invest in other things like software development and battery production.”