German car manufacturers invest heavily in electrification
According to a recent EY study revealed in Frankfurt the German car industry is by far the heaviest investor in electrically driven vehicles.
The last two years the 16 largest car manufacturers have invested approximately 5,3 billion euro in electrification. More than 60% of it or 3,2 billion euro was spent by German car companies, against 990 million euro by Chinese, 887 million euro by American and 110 million euro by French car makers.
German big three
In the same period the German big three (VW Group, Daimler and BMW) have announced 4,7 billion euro of planned investments in electrification, far more than the Americans (335 million €), the French (110 million €) and the Japanese (19 million €).
“The importance of electric propulsion will grow consistently in the following years”, says Peter Fuss, expert at EY consulting. “Compared to other worldwide manufacturers the Germans had a certain delay”, says Fuss, “especially because they’re fairly dependent of the Chinese market where there will be ambitious quota for ‘new energy vehicles’ in 2019.”
Not to be missed
When you look at the importance companies like Tesla or some Chinese (BYD, BAIC, …) have gained in the past years thanks to this trend towards electrification, the Germans can’t afford to miss that… train.
Volkswagen foresees 1 billion euro to transform its Zwickau factory (eastern part of Germany) in a production site only fit for manufacturing electrically driven vehicles. The Kassel engine factory (centre of the country) will be transformed to produce electric motors.
Avalanche of electric models
Daimler, manufacturer of Mercedes-Benz cars among others, plans to build an entirely new battery manufacturing plant in the States.
Until now the German manufacturers were leaving the (still small) market of electrically driven vehicles to mainly the Chinese, the Nissan/Renault/Mitsubishi Alliance and Tesla. In the following years they want to gain an important part of this growing market by an avalanche of electric models in 2019 and 2020.