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Volkswagen puts pressure on Tesla with $25-billion investment in battery supplies

News Summed Up 2018-03-13 05:30:00

Volkswagen AG secured 20 billion euros ($25 billion U.S.) in battery supplies to underpin an aggressive push into electric cars in the coming years, putting pressure on Tesla Inc. as it struggles with production issues for the mainstream Model 3. The world’s largest carmaker will equip 16 factories to produce electric vehicles by the end of 2022, compared with three currently, Volkswagen said Tuesday in Berlin. With the powerpack deliveries secured for its two biggest markets, a deal for North America will follow shortly, Volkswagen said. “This is how we intend to offer the largest fleet of electric vehicles in the world.” Diesel quandary Pressure has intensified on Volkswagen to overhaul its lineup. As part of Volkswagen’s 20 billion-euro push into electric cars, it’s setting up a stand-alone sub-brand for battery-powered vehicles.