Volkswagen Challenges Tesla With New Release In The Electric Car Industry

Volkswagen Audi Models Challenge Tesla’s Electric Cars in the Automotive Industry

It seems that the Volkswagen Group is really rolling up its sleeves in the race to catch up with Tesla in the electric car industry. The company’s response will come with Audi badges, chosen to compete with Tesla’s luxury models.

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Tesla Excels with Its Electric Car Launches

VW has already launched the E-tron SUV in two body configurations and is preparing to showcase the e-tron GT, its first sports sedan in the electric car market. The GT is a sort of “cousin” of the Porsche Taycan, but with adaptations to Audi’s lineup, and production began in 2020.

Cost Reduction at Volkswagen

In an interview, the CEO of Volkswagen stated that further cost reductions and a faster restructuring of the German industrial giant are vital to confront new rivals with greater financial firepower.

He is not only thinking about keeping pace with Tesla’s electric cars but also the risk that Apple might present itself in the automotive arena as yet another powerful competitor with nearly unlimited resources.

VW Group Invests € 73 Billion to Challenge Tesla

According to an official statement, the “Volkswagen Group is advancing with its transformation into a digital mobility company. As decided in Planning Round 69, the Group will spend around € 73 billion on electrification, hybrid drivetrains, and digital technology over the next five years.

The announcement came after a Supervisory Board meeting. Investments in Capex and R&D for future technologies will increase to 50% from 40% of the Group’s total investments of around € 150 billion.

Investments in digitalization will double to € 27 billion by mid-decade, reflecting the Group’s strong focus on building software capabilities. Approximately € 35 billion will be spent on battery electric vehicles. Another € 11 billion has been allocated for the development of hybrid vehicles based on existing models.”