Volkswagen considers setting up its own battery factory
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Volkswagen is considering building a multi-billion-euro battery factory as part of a major expansion of its electric-car portfolio, company sources told the Handelsblatt, a leading German daily.
The factory will allow Volkswagen to operate independently of Asian firms like Panasonic, LG and Samsung that have dominated the battery market to date, the newspaper added.
The company’s executive board looks to be in favour of approving the plan, which is also supported in principle by the works council and the state of Lower Saxony, its major shareholder, before the firm’s annual meeting on June 22.
The company hopes that focusing on battery technology and electric cars can help it make a fresh start and improve its negative image after the “Dieselgate” scandal, the paper said.
Questions & Answers
Q.What is the primary motivation for Volkswagen to consider building its own battery factory?
What is the primary motivation for Volkswagen to consider building its own battery factory?
Volkswagen aims to become independent of Asian battery manufacturers such as Panasonic, LG, and Samsung, which currently dominate the market. This move supports a significant expansion of its electric-car range.
Q.Who within Volkswagen is currently supporting the battery factory plan?
Who within Volkswagen is currently supporting the battery factory plan?
The company’s executive board appears to favour the plan. It also has in-principle support from the works council and the state of Lower Saxony, Volkswagen's major shareholder.
Q.When is the final decision on the battery factory expected to be made?
When is the final decision on the battery factory expected to be made?
The plan is being considered for approval before the company's annual meeting, which is scheduled for June 22. This suggests a decision will be made relatively soon.
Q.How does Volkswagen hope this investment will benefit its public image?
How does Volkswagen hope this investment will benefit its public image?
The company hopes that by focusing on battery technology and electric cars, it can make a fresh start. This strategy is intended to help improve its negative image following the 'Dieselgate' scandal.
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