Volkswagen of America Launches Zero Emissions Investment Group as Part of Its Punishment

Matt Posky
by Matt Posky

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.

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Garrett Garrett on Feb 07, 2017

    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.

    • See 6 previous
    • Never_follow Never_follow on Feb 08, 2017

      @Garrett That's the real problem, isn't it? Cars are designed around passing tests, making them worse in real life. It's much like the real fuel economy difference between a manual and an automatic. Manufacturers have gamed the shift points so that it looks like the auto is now more frugal than the manual. It never pans out that way in reality. VW just took the hypocrisy to it's logical conclusion, and they get to pay the price for it.

  • Sceptic Sceptic on Feb 08, 2017

    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.

    • See 1 previous
    • HotPotato HotPotato on Feb 09, 2017

      No, they were not designed to satisfy the requirements, they were designed to cheat on the test. Nowhere in the requirements does it say you can turn on the emissions controls only for the test; in fact it says the opposite. It's not like they lacked the engineering chops to do it right. In fact, the latest round of TDI VWs, with controls designed to actually remain on, is the cleanest set of diesels in Europe.

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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