VW

VW wants to popularize the '' electric ''

The German press reveals that Volkswagen is in a very advanced phase of negotiations with the competition, so that its rivals can use the platform that the brand developed specifically for electric vehicles, Modularer Elektrobaukasten (MEB). According to Michael Jost, brand strategy boss Michael Jost, Wolfsburg's intention is to open the MEB architecture to the industry, instead of only monetizing it in the manufacturers that make up the German conglomerate:
''Our kit for the modular construction of electric vehicles should be a standard, but not just for the VW Group", he told Tagesspiegel.
Bearing in mind that this opening of doors to competition, giving them access to what takes longer and costs more to develop, goes against what is usual in the industry, Michael Jost made it clear that this option is definitely "a change of paradigm ". To be confirmed, who wins with this? Everyone, but let's go for parts.
1-What does Volkswagen win?

The electric vehicle market has been growing in the last five years, most notably in the last two years, mainly as a result of a political shift that began with the anti-diesel crusade following the emissions scandal. Restrictions on movement in certain areas of cities, or the complete ban on the most polluting vehicles, have led consumers to opt for alternatives to diesel. But nothing like the numbers to have a picture of reality: the market for electric vehicles is still minimal, accounting for only 2% of global sales. What, then, is Volkswagen's interest in?
Volkswagen is in an assumed transition phase. On the one hand, he wants to 'bury' Dieselgate in the past. On the other hand, it needs to continue to sell combustion engines to finance its future plans. The German conglomerate is the one most investing in electric mobility. The figures are telling: 44 billion euros to propose, by 2025, a total of 27 models. After all this investment, would not it be much more interesting for Volkswagen to take advantage of this, leaving the competition that is lagging behind in this area with a problem to solve? That was before. The trend now is "the more the merrier". That is why Mercedes and BMW, eternal rivals, are hitting needles, while Volkswagen and Ford (officially) have already collaborated. And the synergy will not stay with the commercial vehicles, as the "constructive talks" to extend the alliance to the trams started last month.By opening its modular tram platform to competition, Volkswagen is not "giving gold to the bad guy", it is selling it. Since it is mass-produced under license we speak, the German builder will be here to arrange a source of revenue that allows him to recover much more quickly the brutal investment. But that's not all. The massification of electric cars with the same base means drastically reducing production costs, as the "scale" effect applies to the components of the kit. Then, if we assume that in the long term the 'other' business of today's automobile manufacturers will go on to commercialize energy, then Volkswagen may already be positioning itself to ensure a much wider universe of customers. But Michael Jost prefers a more romantic view: "Volkswagen has the word 'people' - this is a job we take seriously." With this indicting that the brand's greatest interest is making cars for the people, that is, cheap.


By the way, the Chief of Strategy confirmed to Tagesspiegel, that Volkswagen's electric SUV under € 20,000 will go on sale in 2023 - "by 2024 at the latest." It will be the input model in the I.D. range, with dimensions equivalent to that of the T-Roc.

2-What does the competition gain by adopting MEB?
It saves time and money. E both are essential to ensure compliance with the new emissions targets. Within two years, all the brands they sell in Europe must have a range that does not emit on average more than 95g / km of CO2, which will require them to sell some electric models and many hybrids and plug-ins under penalty of risking a fine of € 95 for each additional gram, multiplied by the total volume of sales. In 2030, 60 g / km. That is, it will hurt those who fail and it will hurt more, especially those who sell more. So this "opening" of Volkswagen to give in to MEB may sound the lifeline for the builders who are behind this turnaround. All the more so since this platform serves the B (Polo type) and C (Golf) segments - that is, precisely those that make more volume. Another advantage of German architecture lies in its versatility. By having a skate-like structure, with the batteries in the center, on the floor of the vehicle, and the engines housed in the own axles, lends itself to models of rear or integral traction.

3-What do consumers gain?
More offer and cheaper. If MEB becomes the standard, much more quickly the builders of choice of each of us can propose a range of electric models. So the choice will not be limited to less than a dozen brands, as it happens today. Then, since it does not have to bear the costs of developing a platform, it is easier for brands to put more proposals on the market, which means that the remaining ones, in order to remain competitive, will also have to level the prices down.

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