Bet everything on electric: Inside Volkswagen's radical strategy shift

[Zorro]

If Volkswagen realizes its ambition of becoming the global leader in electric cars, it will be thanks to a radical and risky bet born out of the biggest calamity in its history.

The German giant has staked its future, to the tune of 80 billion euros ($91 billion), on being able to profitably mass-produce electric vehicles - a feat no carmaker has come close to achieving.

So far mainstream automakers' electric plans have had one main goal: to protect profits gleaned from high-margin conventional cars by adding enough zero-emission vehicles to their fleet to meet clean-air rules.

Customers have meanwhile largely shunned electric vehicles because they are too expensive, can be inconvenient to charge and lack range.

https://finance.yahoo.com/news/bet-everything-electric-inside-volkswagens-radical-strategy-shift-070347319--finance.html

[Zorro]

1. GM is going 'all-electric,' but it doesn't expect to make money off electric cars until next decade

General Motors does not expect its electric vehicles to turn a profit for at least a few more years, CEO Mary Barra told investors Wednesday.

The largest U.S. automaker repeated its commitment Wednesday to make its entire vehicle lineup "all-electric," but provided investors with few details about those plans on a conference call after GM reported fourth-quarter earnings that beat expectations.

However, GM is clear that its electric vehicles won't make money until "early next decade," Barra said.

Turning a profit from electric vehicles has long been considered a major challenge for automakers, which are pouring money into electric vehicle, EV, technology in the face of fluctuating oil prices, government initiatives to reduce carbon pollution and excitement over Tesla.

https://www.cnbc.com/2019/02/06/gm-doesnt-expect-to-make-money-off-electric-cars-until-next-decade.html

[jberryhill]

2. Knowing VW, they probably hide a little gas engine inside it