20 November 2022 - 19:01The German car industry’s bid to wrest the electric-vehicle crown from Tesla veered off course with stumbles for Volkswagen and Mercedes-Benz. Picture: BLOOMBERG
The developments are a red flag for the industry that is pouring unprecedented funds into the transition with ambitious timelines. While carmakers the world over grapple with the switch away from combustion engines, the stakes are highest for Germany’s manufacturers, which are accustomed to commanding a premium based on cutting edge technology and luxurious trims.
BMW, Mercedes and VW are pouring more than €100bn into scaling up an entirely new infrastructure of assembly platforms, battery plants and software to deliver a new generation of EVs. The hope is that these will lead on driving range as well as digital offerings that tap new sources of revenue and shut out tech rivals.
At VW, the fallout could also be far-reaching. Should the delay of its Trinity battery car project beyond the original 2026 be confirmed, the carmaker may also scrap plans for a €2bn factory in Germany. It would mean the VW brand loses a chance to close the technology gap with Tesla, especially on automated driving features.