CEO puts a high expectation on automakers’ e-mobility business that they would present the same profit as the combustion-engine business does earlier than planned.

BERLIN – Volkswagen Group expects the electric vehicle business to give the same profit as the combustion engine cars more immediate than it was planned, said CEO Herbert Diess.

VW hoped to fit its profit margins from combustion-engine vehicles to EV sales in two up to three years yet the automaker was in a healthy financial situation regardless the challenging economic environment. It means the automakers can take effort to meet the expectation due to the robust financial position they have.  

At the automaker’s annual shareholder meeting, Diess said the e-mobility business will be as profitable as the business of combustion engine earlier than planned. He added, they have a good finance position to strengthen their resilience through a good crisis management. Well, there is nothing to worry about dealing with what they expects.

There is no timeline that Diess gave when the EV business would fit the combustion-engine profitability. Diess is willing that VW overtake Tesla and becoming the No. 1 electric-car maker in the world by 2025. That would lead to build its bigger product that offers not only luxury cars but also premium ones as well as the volume brands. Electric car makers are likely to be able to produce up to three types of electric cars by 2025.

VW Group transported 452,000 EVs throughout the world last year and aimed to reach a half of its global output to be full-electric by the year 2030. This would encourage them in the future in manufacturing their desired cars in the years to come.

800,000 units of full-electric cars are planned to build by the automakers this year and 1.3 million more in 2023. According to Murat Aksel, the procurement chief, WV needs to increase the prices due to the rising raw material costs.

Dies also declares he thought the timing was right for the sports-car brand Porsche produced for the first public offering. That is already planned for the fourth quarter of this year. It was still outstanding to determine the final decision on whether Porsche would enter Formula 1, said Oliver Blume, the brand’s chief.

Volkswagen said in April that it and the Porsche as well as Audi brands were ready openly to compete in an international racing class. Last week, however, Diess stated some divisions were among the board yet the brands had created the case for the actions.

Overall, the expectation VW group on the profitable electric-car business will find its brighter future. The profit they expect will be similar and even bigger and earlier than the combustion-engine cars due to the ideal timing they take.

Let’s wait for the upcoming electric-cars that would probably dominate the market as people start considering a more friendly-environment vehicles today. Further, having the free-emission car is the dream of everyone around the world right now.

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