VW launches Electrify America

Volkswagen AG (VW) will invest US$2 billion (AUD$2.62bn) in zero emission vehicle (ZEV) infrastructure and awareness programs over a decade across the US.

The new company, which will be known as Electrify America, will be a standalone organisation that will manage funding of the effort to promote zero-emission cars, Reuters reports.

The world’s largest automaker by sales says the unit plans to install more than 500 charging stations nationwide, including more than 300 stations in 15 metro areas.

VW also notes it will develop a high-speed, cross-country network consisting of more than 200 stations for electric vehicles (EV).

The company has not decided on a business model for its charging stations.

VW will also launch a “Green City” initiative in a yet-to-be-identified California city to pilot future concepts.

They could include a ZEV-based shuttle service, an EV-based car-sharing program or a ZEV transit program.

VW named long-time auto executive Mark McNabb as chief executive of Electrify America. McNabb has overseen the diesel settlement program and will continue to do so in his new role.

“It is a very fast and furious project,” McNabb told Reuters, adding that the push to expand EVs is “an opportunity to transform an industry. How many times in life do you get that opportunity?”.

The company will make four US$500 million investments every 30 months and must get approval from the California Air Resources Board and the US Environmental Protection Agency for spending.

VW must also submit draft plans to regulators on the first funding plan by February 22.

The Electrify America LLC unit, based in Reston, Virginia, is a wholly owned subsidiary of Volkswagen Group of America and is separate from Volkswagen AG’s automobile brands.

It initially expects to employ around 40 or 50 people in the first few years, but it will also use outside contractors.

The German automaker’s settlement on excess diesel emissions from nearly 600,000 US vehicles requires that US$800 million be spent in California and US$1.2 billion be invested throughout the rest of the US.

Last December, VW agreed to add at least three additional EVs, including an SUV, in California by 2020 and must sell an average of 5000 EVs annually through to 2025 in the state.

Funds spent on education and outreach must be brand neutral and cannot feature Volkswagen vehicles. Charging stations must be accessible to all vehicles.

VW is set to plead guilty on February 24 to three felony counts as part of a plea agreement with the US Justice Department to resolve charges after it installed software in US vehicles to allow them to emit excess pollution.