Volkswagen contemplates setting up battery manufacturing plant
Volkswagen AG is reportedly contemplating building an in-house battery factory which is in-line with the company's bigger plans of expanding its electric vehicle model range. Understandably, the new factory will require a multi-billion euro investment. Once it becomes operational, Volkswagen will no longer have to rely on companies like Panasonic, LG and Samsung for batteries. German daily Handelsblatt got to know about this from its sources within the company.
According to the report, a new battery factory will give Volkswagen an early advantage and allow it to become one of the top developers of the new technology. It is also part of a larger plan to clean up the company's image after the recent emissions cheating scandal. Senior company officials are of the view that their new focus on battery technology and electric vehicles will allow Volkswagen to make a new start.
Matthias Muller, the chief executive of Volkswagen AG and senior officials are reportedly working on a new strategy to increase the company's electric vehicle sales to 1 million units in the next 10 years. Volkswagen's executive board seems likely to approve the plan, which also has the support of the works council and the state of Lower Saxony before the company's annual meeting scheduled on June 22, 2016.