VW’s Diess Says EV and ICE Profit Margins Equal in 2-3 Years

• CEO says VW’s New Auto plan will reinvent automaker

• Diess said VW Group sold most EVs in Europe in first half of 2021

The CEO of Volkswagen says that its latest plan will mark the company’s largest transformation ever. “With New Auto, we will reinvent Volkswagen,” Diess said about the plan as he revealed results showing VW Group EV deliveries up significantly compared with the year before.

In the first half of 2021, VW Group sales were up 27.9 percent from the year before at just around 5 million. 171,000 electric vehicles were delivered in the same time, more than double the same period a year before.

Group CEO Herbert Diess said that VW Group delivered 26 percent of all EVs in Europe in the first half of the year, more than any other automaker. He also made a surprising financial announcement, saying that he expects VW Group margins on electric cars will match those of internal combustion “in two to three years.” The announcement said that Volkswagen expects its operating return from vehicle sales to climb a full percentage point by 2025.

Summarising each segment of the business, Diess said that combining Audi EV development with Bentley and Lamborghini would increase economies of scale and add to Audi’s level of tech. At Volkswagen, he said that the ID.3, 4, 5, and six would be joined by the ID. Buzz next year but that VW would also soon introduce tech from Audi’s Artemis flagship project.

“With our New Auto strategy, we will reinvent Volkswagen by 2030,” said Diess at the virtual Annual General Meeting of the Volkswagen Group. “The cars on our roads will be sustainable, safe, smart and ultimately autonomous within the next ten years. Individual mobility has a bright future. With our strong brands and global technology platforms, we have a clear plan to play a leading role in the new world of mobility, too.”