Volkswagen might use Ford's US plants to produce its own electric vehicles (EVs)

U.S. auto manufacturer Ford is talking with Volkswagen in Washington, DC about the German auto maker possibly using Ford plants to make electric vehicles and sharing its platform with Ford in the U.S.

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EVs to be manufactured may include microbuses

Back in June the two companies announced that they were planning an alliance to cooperate on some future products. Diess said that the alliance would not include equity stakes for the automakers. Volkswagen chief executive officer Herbert Deiss said recently that he is looking for a place to build the company's electric cars in North America.

EV models include classic microbuses

Although Diess did not say what exact models may be made in the U.S., they may include the I.D. Crozz and the I.D. Buzz.

The I.D. Crozz is expected to go on sale in 2021, and the I.D. Buzz in 2022. The Buzz is a remake of the classic microbus. However other possibilities include pickup trucks shown at recent auto shows that are sold worldwide.

Diess said: “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.” Audi, which is now part of the Volkswagen group. is also planning to sell vehicles in the U.S. including several models that will be based on VW's MEB platform designed to produce more affordable models.

A recent article notes: "Volkswagen is expecting to launch at least three new all-electric vehicles in the U.S. in the next five years.The first will be the 2020 introduction of the ID, a unique electric-only that would replace the e-Golf; the much-anticipated, all-electric ID Buzz, a remake on the counterculture-icon microbus, due in 2022; and the I.D. Crozz, a rugged-hatchback spinoff. A flagship sedan, previewed by last year’s I.D. Vizzion concept, could also arrive around 2022."

Ford could use VW's EV architecture

If Ford and VW come to an agreement on sharing the development of EVs, both companies could use VW's EV architecture. VW is planning large investments in EVs up to $50 billion.

VW hopes that by just 2025 fully a quarter of all the groups' vehicles will be solely powered by electricity. They expect to have some 50 different fully battery powered vehicles plus 30 plug-in hybrids.

Using Ford plants would save VW money

Although there are some reports and rumors about VW expanding its existing plant in Chattanooga, Tennessee or even building a new plant, sharing facilities with Ford could achieve the aims of VW without the company having to invest a great deal of money in a new or expanded facility. It would help localize production as well and help shield it from currency fluctuations or trade wars.

Neither company has released any specifics about their deal, and both said they were still in the process of working out details.

Previously published in Digital Journal

Volkswagen to spend $84 billion on electric cars and batteries

German car manufacturer Volkswagen (VW) has announced that it will spend $84 billion on electric cars and batteries. The company made the announcement at a pre-Frankfurt Motor Show.

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Earlier in 2017, VW announced it would be investing $10 billion in electric vehicles (EVs) but it has obviously changed its investment strategy. A full $50 billion is being invested in battery production. Toyota, Tesla and others are also battling to be first to discover and adopt new battery technology as discussed in a recent Digital Journal article. The company hopes to create a vast range of different electric cars. Matthias Mueller, CEO of VW, said: “A company like Volkswagen must lead, not follow. We have got the message and we will deliver. This is not some vague declaration of intent. It is a strong self-commitment which, from today, becomes the yardstick by which we measure our performance.”

Last September at the Paris Auto Show, VW introduced its I.D. electric model but planned to put it on the market only by 2020. Earlier this year VW said that it wanted to overtake Tesla as the leader in production of electronic vehicles. As well as the three models of the I.D., VW intends to bring multiple EV's to market branded as Audis and Porsches. VW appears to attempting to change its image after the disaster of the diesel emissions scandal in September of 2015 VW announced it would spend $18.32 billion to rectify the issues and to refit all the vehicles affected as part of a recall campaign.

VW is the worlds' largest automaker by sales. The company claimed that it would roll out a whopping 80 new EV's across its multi-branded group of cars by 2025. Its previous goal had been thirty. CEO Mueller said that VW would be "setting the scene for the final breakthrough for e-mobility", The I.D. model is intended to be competition for Tesla's low end Model 3 that has a starting price of $35,000 and is already coming on the market. Daimler announced that Mercedes-Benz would be offering electric versions for all models by 2022. BMW has had 13 electric models since 2013 and was readying factories to mass produce EVs by 2022 and promised 12 purely electric models by 2025.

In many countries EV's constitute less than one percent of sales. Norway is far ahead of others at over 22 percent in 2015 even though it is in the north of Europe. By contrast in the same year EV's had only 0.73 percent of the market in Germany. This was better than the US at 0.66 percent. China was better than both at 0.84 percent. Canada was a mere 0.35 percent. As some countries plan bans on fossil fuel vehicles in the future, EV's will no doubt claim a much larger share of the market.

US February auto sales rise significantly

February auto sales in the United States rose at a seasonally adjusted annual rate in February of 17.43 million according to WardsAuto. Autodata put the rate at 17.54 million.

2016 started off in January with sales growing at the fastest pace since 2000. February continues the trend upward — most companies beat expectations with Ford among the the leaders. Of the other big three, GM posted an unexpected decline while Fiat Chrysler did very well. Ford sales grew by a humongous 20.2 percent compared to last year while expected growth was 12.6 percent. GM sales declined by 1.5 percent while sales were expected to grow by 5.1 percent. Fiat Chrysler sales grew by 11.8 percent while expectations were for a growth rate of just 9.2 percent.

Volkswagen sales were still hurting as a result of their diesel emissions scandal. Sales slumped by 13 percent. However, the Tiguan soared in sales by 78 percent. Luxury German maker BMW sales also declined by 12.4 percent. However, Porsche was one bright spot among German auto manufacturers with a sales jump of 11.2 percent.

Among Japanese auto makers Nissan had a sales jump of 10.5 percent much more than the 7.2 percent expected. Toyota had a gain of just 4.1 percent less than the 4.9 percent expected. Honda had a large jump of 12.8 percent compared to expectations of 8.8 percent.

Among Korean auto makers Hyundai had a marginal 1 percent gain in sales while Mazda had a large drop of 16 percent. Kia was the big winner with a sales jump of 13 percent.

Ford's impressive growth was fueled by strong demand for SUV and crossover vehicles whose sales increased by 28 per from last February. However, the popular F-Series pickup trucks also sold well, 10 percent better than a year ago. Cars also did quite well jumping by 19 percent from last year. Fiat Chrysler's sales were bolstered by strong demand for the Jeep SUV and for the Ram truck line.

Several factors may have influenced the increase in sales. Michelle Krebs, an analyst with Autotrader said: "In addition to positive economic factors, February car sales got a boost from the Super Bowl, (the) Presidents Day (holiday) and beefed up dealer advertising." Analysts expect that eventually sales will hit a plateau and taper off, but since the 2008-9 recession sales have been increasing. On the east coast of the US, a January blizzard may have resulted in purchases being delayed until February. Low fuel prices, easy credit, and a high employment level may also help increase demand for new cars. The low fuel prices may be leading to more sales of expensive trucks and SUVs. Edmunds.com reports that light trucks and SUV's outsold cars for thirty months in a row and amount to 60 percent of sales overall in February.