Volkswagen to start production of electric vehicles in China

Volkswagen AG’s two joint ventures in China, Shanghai Volkswagen and FAW Volkswagen are planning to start producing electric cars in 2014, and mass produce the vehicles by 2018. The initial target output is a few thousand vehicles until it reaches 100,000 units by 2018. “I am convinced e-vehicles will be a success in China because I think it is desperately needed,” said Karl Thomas Neumann, president and chief executive of Volkswagen’s China operations. Electric vehicles have not been able to take off in China because of the cost of batteries, limited charging facilities, safety concerns and the lack of models which appeal to consumers. Neumann believes however, that they are needed in the country to solve its pollution problem and reliance on oil. Neumann said that Volkswagen will launch its first plug-in hybrid in China in 2015, and that each of the joint ventures would produce its own e-vehicle. Beijing had declared the electric vehicle industry a top priority and has set aside US$1.5 billion per annum for the next 10 years for the industry, in its bid to become a leading producer of clean vehicles. (February 14, 2012)