Volkswagen, reportedly, has been planning to convert three of its factories not only to save jobs but with major intensions to manufacture electric cars costing below 20,000 Euros (about $23,000).
With the introduction of Strict Laws after diesel emission test cheating scandal, auto industry as well as Volkswagen has been under pressure to swiftly adaptation of new rules.
At Volkswagen’s board meeting scheduled on November 16, production of 200,000 electric cars for its MEB platform will also be discussed. The board will also discuss the transformation of Volkswagen image to Europe’s mass producer of electric cars from its current status of largest maker of combustion engine vehicles. These plans of strategy shift came out of pressure after banning of vehicle with diesel engines in several cities. In Germany, about 600,000 are attached with industrial jobs out of which 436,000 are linked with car companies and their vendors. Even Germany labor union holds the 50 percent seats in Volkswagen’s supervisory board. And with gradually fainting future of combustion engine vehicle in Europe, car makers are shifting towards electric cars to safeguard the industrial jobs in Germany.
Sources are also indicating that for its electric cars, Volkswagen is approaching for long term alliances even with its rival Ford and SK Innovations, a manufacturer company producing battery cells.
Reportedly, Volkswagen’s plant already making its Passat, will be utilized to build another midsized sedan namely I.D. Aero. Another of its ID Buzz, an electric van, is planned to be built in Hannover making T6 Vans already. And in order to spare the production line in Hannover plant, Volkswagen could use the Ford’s plant in Turkey for its transporter vans production.
Ford is enjoying stronger earnings in United States with money spinning segment of pickup trucks and in Europe with large demand of its passenger cars, Volkswagen dominates. Both are in talks for making alliance to be helpful for each other to achieve their global sales and production goals and building electric and self driving cars.