Friday, 17 March 2017

Volkswagen targets Bay Area in $2B electric-vehicle infrastructure investment

San Jose and San Francisco stand to gain hundreds of high-speed electric vehicle charging stations as part of Volkswagen’s $2 billion settlement related to false emissions test results.
The German automaker earlier this week released its plan to disburse the funds, which were part of a court settlement with the California Air Resources Board and Environmental Protection Agency. The company was penalized last June after it sold half a million 2.0-liter diesel vehicles rigged with software to cheat on U.S. emissions tests. The company is required to spend $800 million of the total settlement in California alone, according to Elektrek.
VW formed a subsidiary, Electrify America LLC, to handle the investment, construction and maintenance of electric vehicle charging stations in both San Francisco and San Jose. Each metro will receive 350 or more fast-charging stations at locations that include multi‐family homes, workplaces, commercial/retail establishments and at municipal lots/garages.
The company plans to install both 150 kW and 320 kW DC fast chargers with at least five chargers per station. The chargers will not be proprietary to VW.
Los Angeles, San Diego and Sacramento are among about a dozen additional metros slated to receive charging stations from the company. Additional metro areas will be targeted in future investment cycles, Volkswagen said.
“Charging stations will be located first in the areas with the highest anticipated ZEV demand; this is based on the forecast penetration rates of ZEVs in each region and the estimated gap between the supply and demand of charging infrastructure in those regions,” the company wrote it its plan. “In aggregate, the Electrify America first cycle investment will aim to establish a network of approximately 2000‐3000 non‐proprietary chargers across 400+ individual stations.”
Outside of major metro areas, VW plans to build a "high-speed, cross-country" network of more than 200 fast-charging stations for electric cars, according to Bloomberg. VW also agreed to promote the adoption of zero-emission vehicles with a “brand-neutral” ad campaign.
Volkswagen Group of America Chief Operating Officer Mark McNabb will give up his current role to serve as CEO of Electrify America, per the company. The subsidiary will be based in Reston, Virginia.
The settlement won’t be completely punitive for VW as it sets up infrastructure for the future of electric vehicles. The company already has one electric car on the market in the U.S., the e-Golf, and hopes to sell 3 million electric vehicles worldwide by 2025, per Bloomberg. The company also expects to introduce of 20 new electric models by 2020.
VW's plan comes as Tesla seeks to raise $1 billion in capital to scale production of its Model 3 , a less expensive car than its previous models that's already seen high consumer demand via pre-orders. One analyst has predicted that for Tesla's electric vehicles to be competitive with gas-powered cars, it would need to spend between $2 billion and $8 billion to build out a network of about 30,000 charging stations across the U.S.

No comments:

Post a Comment