Volkswagen taking crucial steps in order to compete with Tesla. Know How
Wednesday, November 17, 2021 | Chimniii Desk
Key Highlights
- Volkswagen has hired power sector veteran Elke Temme, who spent nearly two decades at German energy giants RWE and Innogy, to assist the carmaker in preparing to compete with Tesla.
- Volkswagen expects its network of fast-chargers to nearly quadruple to approximately 45,000 by 2025, when it hopes to surpass Tesla as the global leader in electric vehicles, with 18,000 EV pumps in Europe, 17,000 in China, and 10,000 in North America.
- Volkswagen announced in March that it intends to invest 400 million euros by then in developing its fast-charging network across the continent.
- "Volkswagen claims that its open-access policy enables buyers of its EVs to charge at more than 250,000 current public charging stations across Europe – from a variety of providers and with a range of charging speeds.
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Frankfurt/Dusseldorf: Volkswagen intends to quadruple the size of its charging and energy division, introduce new payment technology next year, and form additional alliances in order to compete with Tesla in a critical electric vehicle (EV) battleground: power infrastructure.
By ensuring that there are enough fast-charging stations – and enough electricity – for the EVs it wishes to sell, Europe's largest automaker seeks to convince drivers concerned about battery ranges that they can permanently abandon their fossil fuel vehicles.
Volkswagen has hired power sector veteran Elke Temme, who spent nearly two decades at German energy giants RWE and Innogy, to assist the carmaker in preparing to compete with Tesla.
Temme, 53, has been in the post since January and is responsible for consolidating the carmaker's many energy activities, including energy procurement, enabling customers to charge their cars at home and on the road, and selling the electricity required.
To do this, Temme intends to quadruple the size of Volkswagen's European charging and energy division, known as Elli, to approximately 300 employees in 2022, after tripling it this year, she told Reuters in an interview.
"We invest in high-growth sectors that do not always have to be profitable immediately. We constantly consider these investments in the context of our corporate strategy as a whole "'She stated. "That is why it is critical to develop a complete infrastructure."
Temme would not disclose the budget she has been granted, but said Volkswagen, run by Tesla enthusiast Herbert Diess, had accepted the company's investment demands. The division also sells home battery storage devices comparable to Tesla's Powerwall.
Volkswagen, according to a Reuters research, is far ahead of the pack globally in terms of investment plans for EVs and batteries through 2030, with plans to spend 35 billion euros on battery EVs by 2025. Global automakers' investments in electric vehicles and batteries.
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CATCHING UP
However, VW has some catching up to do when it comes to the network of fast-charging stations that many analysts believe is critical to pushing EVs into the mainstream.
Tesla has been deploying high-performance Superchargers for years and claims to have a global network of over 30,000 fast chargers capable of providing a 200-kilometer (125-mile) boost in 15 minutes.
In October, the business announced that its own network had doubled in size over the last 18 months and will triple in the following two years.
Meanwhile, Volkswagen expects its network of fast-chargers to nearly quadruple to approximately 45,000 by 2025, when it hopes to surpass Tesla as the global leader in electric vehicles, with 18,000 EV pumps in Europe, 17,000 in China, and 10,000 in North America.
Volkswagen announced in March that it intends to invest 400 million euros by then in developing its fast-charging network across the continent.
However, this is a pittance in comparison to the 5 billion euros the European Union estimates will be required year until 2040 to expand charging infrastructure across the continent, and it is increasing pressure on utilities and governments to step up.
In Europe, the Volkswagen group, together with competitor automakers BMW, Daimler's Mercedes-Benz, Ford, and Hyundai, is a shareholder in the EU's fast-charging initiative Ionity.
Additionally, it has partnered with energy companies such as Italy's Enel, the United Kingdom's BP, and Spain's Iberdrola to bridge geographical divides and provide the groundwork for how funding for EV infrastructure might be distributed across industries.
"Numerous options are possible, ranging from product partnerships and joint ventures to mergers and acquisitions," Temme explained. Global automakers' investments in electric vehicles and batteries, 
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AUTOMOBILES AND POWER
Tesla has already demonstrated that simply selling cars is no longer sufficient when it comes to EVs. It has embraced a business plan that includes providing consumers with anything from cars to battery storage to solar panels, as well as power in certain locations in the United States.
Volkswagen is now selling electricity to retail customers who own an electric vehicle or a plug-in hybrid. Since its July introduction, Temme claimed, one of its rates – which is offered to customers who do not own a VW – has attracted more than 10,000 customers.
She stated that VW intends to make its fast-charging stations available to all EV drivers, in contrast to Tesla, which has thus far restricted access to its supercharging network to Tesla owners – with the exception of a test programme in the Netherlands.
"We are taking a different strategy to charging infrastructure deployment than Tesla," Temme explained.
"We desire an open, non-discriminatory charging network and will continue to expand our services to make our offering more comfortable, simpler, and more appealing."
Volkswagen claims that its open-access policy enables buyers of its EVs to charge at more than 250,000 current public charging stations across Europe – from a variety of providers and with a range of charging speeds.
The issue is that charging standards and payment methods vary amongst providers, which can make refuelling an EV a time-consuming and messy process.
Volkswagen plans to offer "Plug & Charge" technology in Europe beginning in the first quarter of 2022 to streamline the procedure.
When the charging plug is connected to the EV, the car will save the owner's payment information and make a contactless payment at the service's designated refuelling stations.
While these are novel issues for established automakers, Temme, who seen Germany's utilities abruptly abandon nuclear power in the aftermath of the Fukushima disaster, believes they can be overcome.
"Utilities must reinvent themselves and move away from nuclear and coal in favour of renewable energy. The automobile sector, particularly Volkswagen, is now grappling with the issue of how to continually shift the emphasis away from conventional vehicles and toward sustainable mobility "'She stated.
"These are comparable difficulties."
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