Volkswagen declares war on EV leadership

The modern electric car era took a new turn at the 2010 Geneva motor show.

The world's two biggest car makers -- Toyota and Volkswagen -- appear locked in a battle to become the biggest players in hybrid and electric cars.

In a startling milestone announcement, the chairman of the board of management of the Volkswagen Group, Professor Dr Martin Winterkorn, said that the company wanted to be the number one global brand by 2018 -- and it was going to embrace hybrid and electric cars to help in its pursuit.

"The Volkswagen Group as a whole is moving with electric cars and hybrids into the fast lane. In the future, the heart of the Volkswagen Group will also beat electrically," Prof Winterkorn said.

The comments are profound given that, until now, Volkswagen has insisted that efficient petrol and diesel engines were the key to the future of the automobile.

While the German giant has played at the margins with electric and hybrid concepts in recent years -- and even dismissed them at times -- it now seems apparent that Volkswagen has fully embraced the new technology.

"The race for the drive technology for the future is on," he said at Volkswagen's invitation-only press conference on the eve of the show.

"With efficient internal combustion engines, lightweight construction, DSG [twin clutch gearboxes] and intelligent electronics, ... the Volkswagen Group already is a neck ahead in the race. And actually this is exactly what we'd like to do in terms of electric cars too.

"Volkswagen is the car maker that will bring hybrids out of a niche and put them into its volume models.

"Volkswagen will be the car maker that will mass produce the electric car for everyone."

The bold claims come as Toyota begins its 12th year of manufacturing mass-produced hybrid vehicles, with almost 2 million hybrids sold worldwide in that time.

Nevertheless, Volkswagen is bullish about the inroads it is taking into the Toyota-dominated world of hybrid technology.

"The course has been set for us. The necessary steps have been taken," Prof Winterkorn added.

"We have established a new and very ambitious launch plan for electric cars with very clear defined milestones."

In 2010 Volkswagen will launch the new second generation Touareg, the first hybrid to be mass produced in the company's history.

And in the next few months, VW will have electric-car test fleets on roads in Europe, North America and China.

In 2011, the car maker says, it will add to its test fleet 500 e-Golfs, ahead of the Jetta hybrid in 2012 and Passat and Golf hybrids in 2013.

The year 2013 will also see VW's first pure electric cars.

"First of all the Volkswagen e-Up (pictured) will be launched and two months after that we will be seeing the production version of the e-Golf. And then at the end of 2013 we'll be brining you the e-Jetta," Prof Winterkorn said.

"What's cruicial is that all of these cars are not just environmentally friendly but suitable for everyday use, and they're affordable and they're safe. It is only by offering all these things that we can make zero-emissions vehicles successful."

But VW also said more assistance was required from governments and energy companies to keep up with how fast automobile technology was changing.

"I am saying very deliberately that it's a challenge for all participants: car makers, utility companies, energy companies, and politicians. Only by working together extremely hard will we be able to make electric cars a reality on our roads.

"This means that research has to be strongly supported. We have to provide incentives for customers and we have to have strong infrastructure."

Prof Winterkorn said that while efficient internal combustion engines are the "foundation" of the Volkswagen Group, "now we are making electric cars the second strong pillar in the group".

"As a multi brand group with our modular systems, we have what it takes more than any other company, because we can put all of our drive systems flexibly and economically into all of our series and brands.

"Against this backdrop, by 2018 the Volkswagen Group is aiming at a three per cent share of electric cars in its annual deliveries.

"By 2018 the Volkswagen Group would like to be number one in the automotive industry in economic terms and environmental terms."

As examples, he said that in 2011 Audi will launch the Q5 hybrid and in 2012 Audi will launch the e-Tron, the first electric vehicle supercar. A hybrid version of the A8 will follow and an electric-only version of the new baby A1 hatch was at Geneva.

Prof Winterkorn also used the speech to welcome Japanese motorcycle and small car specialist Suzuki into its fold.

"There is no partnership with such a compelling logic as the one between Volkswagen and Suzuki," he said.

However, VW is yet to announce what mechanical or model sharing there will be. Volkswagen clearly wants Suzuki's expertise in light cars and motorcycles. The tie-up with Suzuki also gives VW a foothold in Japan and puts it on the doorstep of its main rival, Japanese giant Toyota.

Prof Winterkorn used the opportunity to outline VW's forecast on how 2010 would shape up for the car industry globally.

"The year 2010 will not be an easy year. In Europe and in Germany we are continuing to expect headwinds [in the wake of a boom last year following the successful cash for clunkers scheme supported by numerous European governments].

"[But] we are seeing a tailwind in China and also in the United States now. All in all, in 2010 the global market will grow slightly and the Volkswagen Group would like to outgrow its rivals. We are cautiously optimistic for the months to come."