Volkswagen Expects To Make Serious Profits From EVs Very Soon

Volkswagen is pulling no punches when it comes to electromobility and recently teased an affordable, battery-powered city car to bring EVs to the masses. Currently, US buyers only have the ID.4 to choose from but that’s set to change with the arrival of the retro-styled ID.Buzz minivan. This attack on the EV segment is set to pay off sooner than expected, with company CEO Herbert Diess noting EVs will be as profitable as ICE-powered cars very shortly.

At the company’s annual shareholder meeting, Diess remarked that VW is anticipating “the e-mobility business will be as profitable as the combustion-engine business earlier than planned…through good crisis management, we are financially robust and have strengthened our resilience.”

Previously, the company expected this to take between two and three years. The group delivered 452,000 electric vehicles to customers all over the world in 2021.

That’s not to say the German automaker hasn’t had its fair share of challenges. Strong global demand for its electric vehicles has put Volkswagen in a peculiar predicament. The brand has, effectively, sold out for the rest of the year pushing orders into 2023. It hasn’t been the easiest time for the auto industry, with supply issues, the chip shortage, and the crisis in Ukraine exacerbating the challenging climate.

Diess has spoken openly about this, warning there may be dire consequences not only for the sector but Europe’s economy too. He remains realistic about the future of motoring, too. Speaking at the Financial Times’ Future of the Car summit, the CEO said there are several problems that need to be cleared before the road to electromobility is a smooth one. Citing concerns around EV infrastructure, he also added that “it takes huge investment and time to achieve.”

Still, Volkswagen remains positive and has set itself numerous ambitious goals; Diess himself is aiming for 50-60% of the group’s sales to be electric by the start of the new decade. This can only be achieved by electrifying the entire lineup and introducing new models which will appeal to eco-minded consumers. To that end, Germany’s biggest carmaker is reviving the iconic Scout brand as a reimagined purveyor of electric SUVs and trucks.

Other electric products under the Volkswagen umbrella include a bevy of battery-powered Audis, the Porsche Taycan, and any number of Skoda, Seat, and Cupra models not available in the United States. There are several additional vehicles up the automaker’s sleeve, though, including the Model 3-rivalling Aero B sedan. With lofty aspirations of dethroning Tesla, it looks like VW has plenty of work ahead of itself.