Volkswagen will build multi-billion-euro battery factory

German automaker VW decided to build 10 billion-euro Gigafactory as part of a major expansion of its electric-car portfolio.

7/28/16 5:00 am chumakdenis 1

VW does its best to live down heinous accident from the past– wounds regarding diesel-emission scandal in the United States are still fresh –and takes an incredibly serious step: construction of multi-billion-euro battery factory.

By doing so, the company intends to kill two birds with one stone: completely clean up its reputation and start competing with such giants as Tesla Motors and Nissan Motor on equal terms – as of now, the company is doing well only in China with its luxurious sedan.

Well, we completely have no idea whether VW will start being more successful , but one thing we know for sure – decision that was taken deserves accolades for sure – how many companies do you know that would be risky enough to invest 10 billion euros (around  11 billion US dollars) into something new?

And all of that stuff is going on while the company remains on the brink of extinction.

Definitely, the company has guts.

Kudos for that.

Anyway, we are getting a little bit off-topic.

Let’s return to our muttons and learn everything about VW’s Gigafactory.

VW battery factory

The factory will be built as a part of a major expansion of the company’s electric-car portfolio.

The all-new Gigafactory will be located in Salzgitter, Germany and will allow VW to operate independently of Asian firms like Panasonic, LG and Samsung that have dominated the battery market.

If calculations are correct, each company’s vehicle will be 66% cheaper, meaning gigantic price drop – I bet that after following step beleaguered company will make a fresh start and improve its negative image – it is even possible that VW will become the next media darling.

Nonetheless, it’s too early to talk about all that stuff.

Let’s pass this back on executive board and look and see what will be next.

VW Chief Executive Matthias Müller and his team are currently working on a new strategy to increase electric car sales in the coming 10 years to 1 million.

Other investments

VW invested heck of a lot of money in solid-state battery startup  QuantumScape in late 2014 and have publicly stated that they expect the technology that can deliver 440 miles( around 700 km) of range.

“We want to launch a major initiative, one that will put us at the top of the industry,” said one insider familiar with the plans.

Hell yeah!

That’s what we call we-can-do-it spirit.

After being mucked, the company doesn’t stop being high-flyer.

Let’s wish VW good luck and wait more news from them.