Volkswagen's future is electric

The Volkswagen Group is embarking on a massive effort to develop dozens of new electric and plug-in hybrid vehicles, as part of a mission to become the world's number one electric vehicle manufacturer by 2018 – by which time it also intends to be the world’s biggest car-maker overall.

Professor Martin Winterkorn, CEO of the Volkswagen Group -- which also owns Audi, Porsche, Lamborghini, Bentley, Bugatti, Skoda, SEAT, MAN, Scania, Volkswagen Commercial and Ducati -- used a keynote address at a gala VW function in Frankfurt this week to outline his grand plan to depose Renault-Nissan as the world's leading maker of EVs.

"We're not talking about two or three niche models -- that's not what we're doing," he said.

"Volkswagen has put electric mobility into the heart of our group and as a result we have met all the requirements to make the Volkswagen Group number one by 2018 in the field of electric vehicles."

Electric versions of the Volkswagen Golf small car and up! micro-hatch were wheeled out during the speech, marking the first step of the company's shift towards electrification.

But Winterkorn said that dozens more electric versions of existing VW Group cars can be developed at the drop of a hat, giving it an edge over its rivals due to its ability to respond to sudden surges in demand.

"In our group it's the customer who decides how much electric they want. But that's just the beginning. If there's suitable demand, we can build up to 40 more models in all segments and classes and that is why electric traction was deliberately incorporated in our existing vehicles and in our modular platforms. It allows us to act quickly," Winterkorn said.

The VW Group supremo made several not-so-subtle digs at Renault-Nissan for jumping the gun with electric vehicles, such as the still-born Renault Fluence ZE and Nissan LEAF, which has notched up 100,000 sales globally but hasn't set sales charts on fire in Australia.

"You might remember there were others beating the drum early and very loudly, but from the word go we have always had an objective and calm perspective of these technologies.

"Since it's never been about showmanship to us or next quarter earnings, our commitment has always been to create substance and real value ... this is our commitment that we are now showing when we are stepping on the gas in the field of electric mobility.”

Currently the Volkswagen Group has two mainstream electric and two plug-in hybrid models: the e-Golf and e-up! are pure EVs, and the Audi A3 etron and Porsche Panamera S E-hybrid are plug-in hybrids. At present only the Porsche is sold in Australia, priced at around $300,000.

Volkswagen is still to make a decision on Australian deliveries of the affordable Volkswagen EVs, though Audi has confirmed that the A3 etron will be sold locally from 2015, priced at S3 money or roughly $70,000.

The Volkswagen Group has employed an army of 400 EV experts to help it achieve its goal of becoming the world's most popular electric car maker in just five years, and Winterkorn says its ability to offer practical and affordable EVs will drive sales.

"The electric car must not be a spartan vehicle. It must be compelling for customers in all ways -- technically mature and suitable for everyday use, safe and above all affordable."

Despite the company's massive EV push, the Volkswagen Group is not ditching the internal combustion engine just yet. Winterkorn professes that petrol and diesel engines will still play a "key role" within the company's vehicle line-up.

"I am convinced that with our technology expertise, with 12 brands and now 280 models, the Volkswagen Group has the right answers for all relevant questions of our day and age," he said.

"Now the time is ripe, now the Volkswagen Group is beginning its major electric initiative."

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