Brandstatter ralf 400

Volkswagen Passenger Cars (VWPC) has revealed the continuation of its transformation into an “electric, software-driven, mobility provider” with the launch of its new ‘Accelerate’ strategy.

The company stated that by 2030, it plans to double its share of electric car sales in European from the previously planned 35% to 70%, and to 50% in the US and China.

Despite CEO Ralf Brandstätter’s (pictured above) comment that the company will “significantly exceed the planned EU regulation” for EVs, VWPC does not intend to discard internal combustion engines entirely.

Brandstätter explained: “We will still need combustion engines for a while, but they should be as efficient as possible. This is why the next generation of our core products – including the Golf, Tiguan, Passat, Tayron and T-ROC - will be fitted with plug-in hybrid technology, with an electric range of up to 100km.”

“E-mobility was just the beginning”

VWPC also recognized the need to pursue a data-based business model, and to advance autonomous technology for its consumers before the end of the decade.

Brandstätter continued: “E-mobility was just the beginning: the real disruption has yet to come. The electric shift marks the beginning of a tough selection process in the automotive industry. The digitization of products and business models is imminent. While competitors are still in the middle of the electric transformation, we are taking big steps toward digital transformation.”

According to the company, its high volumes are likely to aid the scaling of software within the wider VW Group. The firm intends to fully integrate software into vehicles to better shape the digital customer experience, a goal made even more achievable by the flagship battery-electric vehicle sub-brand the ID series. The series takes the lead in developing a customer-centric digital ecosystem, providing ‘over-the-air’ updates every 12 weeks from summer 2021.

Furthermore, VWPC’s new vehicle set to launch in 2026, Trinity, will enable Level 2+ automated driving with plans for an increase to Level 4 in the future.

On the new EV, Brandstätter said: “Trinity, and the technology it contains, must not become the preserve of a select elite, which is why we are scaling it to make it available for many people.”

Service switch-up

As part of this announcement, VWPC also stated it would be working towards offering more attractive service packages in an effort to generate additional revenue across a vehicle’s lifetime through charging and energy services, as well as software-based functions and automated driving.

The company also revealed that its portfolio of vehicles will be simplified greatly in the coming years, with upcoming generations produced with a smaller number of versions. In place of this, individual configuration will no longer be set through the vehicle’s hardware at purchase, meaning that customers can select desired functions through the digital ecosystem as required which is hoped to prevent production complexity.

This is following the announcement that VWPC is looking to reduce its fixed costs by 5% before 2023, increase factory productivity by 5% per year, and optimize material costs by 7%.

With an expected operating margin of at least 6% by 2023, VWPC has earmarked roughly €16 billion (£13.72 billion) of investment in e-mobility, hybrid and digital trends by 2025.