VW to spend $2.1 billion on electric trucks

Auto giant jumps on the electric bandwagen

During a presentation at Volkswagen's Innovation Day in Hamburg this week, it was announced that the company will spend 1.4 billion euros ($A2.1 billion) developing electric trucks, autonomous systems and advanced software.

Division chief Andreas Renschler said the MAN and Scania brands will launch all-electric buses next year in European cities. The company is also preparing to accommodate demand for electric delivery trucks. "We believe in a wide range of alternative powertrains and fuels, depending on local availability, social and local demand and customer requirements," he said.

“Therefore it is crucial that policy makers adopt a technology-neutral approach (to regulations)."

Renschler insisted battery-electric power would penetrate to about five per cent of the world’s local-delivery fleets by 2025 (that figure is expected to be between 15 and 25 per cent for cars).

Critics suggest that’s far too conservative a figure. It was, after all, Volkswagen Truck & Bus’s reticence to deliver a battery-electric local-delivery vehicle that prompted Germany’s Deutsche Post to create its own BEV van.

“With city buses, we are just hitting the break-even point compared to conventional solutions,” Renschler admitted.

“Electric distribution trucks are expected to turn positive in 2020-25,” though he admitted battery-powered long-haul heavy vehicles would be the last transport field to become profitable for owners, insisting today’s battery packs “are too heavy and room-stealing”.

Renschler came to Volkswagen from Daimler, the world’s largest commercial-vehicle maker, which has also announced its intentions to swing its focus towards zero-emission trucks and buses.

Renschler’s division is already pushing its autonomous-driving capability, but it’s avoiding complications by containing its self-driving vehicles to closed conditions, like factory shuttle buses and airport snow ploughs, though it plans to have more complex systems in production in 2019.

“The autonomous Scania mining truck standing outside of this building is ready to be shipped to the first customer overseas after this event,” Renschler said.

“This truck is not a vision. It’s real stuff, here and now.”

VW is said to be preparing to test a range of different electric trucks that can haul around 18 tons for up to 200km on a single charge.

Dr. Eckhard Scholz, CEO of Volkswagen Commercial Vehicles, explained: “The eCrafter is a high-performing van with a range of up to about 200km. The vehicle will be shipped to selected customers by the end of 2017. The
VW I.D. Buzz Cargo, a compact van that runs on electricity, is also being developed, its design and suitability for day-to-day life reminiscent of those of the classic VW Bulli [Kombi].”

Besides Scania and MAN, Volkswagen Truck & Bus also owns Navistar in the US, a quarter of the Chinese truck maker, Sinotruk Hong Kong and has a cooperative agreement with Russia’s GAZ.

VW to spend $2.1 billion on electric trucks

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