In March 2022, Volkswagen Group announced a $7.1 billion investment plan to boost product lineup, R&D and manufacturing in North America.
At the time, the automaker said it aimed to have 55 percent of US sales fully electric by 2030 and that it planned to achieve that by introducing more than 25 new battery electric vehicles (BEVs) to American consumers through 2030.
Now, Volkswagen Group of America CEO Pablo Di Si has revealed more details on how the automaker will manage to launch more than 25 new BEV models stateside over the next seven years.
In an interview with Bloomberg Television, the Argentine native said the EV incentives put in place by the White House’s Inflation Reduction Act will help Volkswagen Group more than double its share of the US market.
All 25 full-electric models the automaker plans to sell in the US by 2030 should qualify for the maximum $7,500 in tax credits provided by IRA, Pablo Di Si said. That will help Volkswagen Group attract more customers and meet its goal of reaching 10 percent of the US auto market by 2030 compared to about 4 percent today, he added.
“We have a great opportunity in the U.S. I believe this is the right time and the right place,” Pablo Di Si said.
Half of the planned 10-percent US market share for 2030 is expected to be held by the Volkswagen brand, which currently has just 1.8 percent of the US market. The group’s other brands including Audi, Porsche, Bentley and Lamborghini, should account for the remaining 5 percent.
To make this very ambitious expansion possible, Volkswagen Group plans to spend more than $7 billion in the US to add production for its electric vehicles. The company began assembling the popular ID.4 electric SUV in Chattanooga, Tennessee last year, while US output of the ID. Buzz electric van is slated to begin in 2024.
VW is also planning to build a mid-size and a large electric SUV in the US in next several years. In addition, the automaker recently announced South Carolina as the new home of its next production facility that will build electric SUVs and trucks for the revived Scout brand. Audi is also reportedly considering adding EV production at one of VW Group’s US plants as well.
Volkswagen Group of America said 80 percent of the 25 new EVs it plans to introduce in the US by 2030 will be made in the US or Mexico, allowing them to qualify for the new federal tax credits.
To qualify for the maximum tax incentive, their battery components must also be sourced from North America or a US free trade partner. The carmaker recently announced a new lithium-ion EV battery cell factory in North America, which will be located in St. Thomas, Ontario, Canada and start production in 2027.
Di Si said he is confident Volkswagen will be able to capitalize on the growth in EVs faster than some other established automakers and gain ground on Tesla, the segment’s leader.