Volkswagen of America Launches Zero Emissions Investment Group as Part of Its Punishment
Volkswagen AG has announced a new U.S. unit that will manage its hefty court-mandated investments in zero-emission vehicle infrastructure and green awareness programs.
Electrify America LLC, located in Reston, Virginia, is supposed to be entirely separate from Volkswagen Group’s automotive brands and owned as a subsidiary of VW of America. It will oversee $2 billion in initiatives to promote the use of zero emissions vehicles in the U.S. over the next ten years as part of VW’s diesel emissions settlement.
Reuters reports that Electrify America will make four $500 million investments every 30 months, but must obtain spending approval from the California Air Resources Board and the Environmental Protection Agency. Volkswagen must submit the first round of those drafted plans to the regulators by February 22nd.
According to VW, the initial plan involves installing over 500 charging stations in the U.S., with at least 300 stations situated in 15 metro areas. The remaining stations will be used to establish a cross-country quick-charge network that will help to facilitate long-range driving. There is also to be a “Green City” initiative in a currently unidentified Californian city to test future concepts. Volkswagen anticipates rolling out services like a zero-emissions shuttle service or an EV car-sharing programs.
The company may also decide to spend the money on green education and environmental outreach programs — however, that material is required by the courts to be brand neutral. Volkswagen has also promised the state of California that it would add least three additional electric vehicles to its lineup by 2020 and that it would sell an average of 5,000 electric vehicles per year within state by 2025. It plans to sell 3 million EVs globally within that same time frame.
The world’s largest automaker is expected to plead guilty on February 24th on three felony counts, part of a plea agreement with the United States Justice Department over charges that it knowingly installed emissions-cheating software in U.S. vehicles and falsified testing data.
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While the investments may produce an economic value greater than burning $2B in small bills to help generate heat, I'm sure there will be minimal long term positive gain from the expenditures. Forcing someone to invest in a manner acceptable to bureaucrats is only marginally better than having the bureaucrats attempt to manage the money themselves.
Exactly. Those TDI cars were designed to satisfy the requirements. Very smart software was developed to overcome the technological challenges. They passed to test. VW could not read EPA honchos' minds. That was their folly.