Volkswagen Planning To Sell $1 Billion Stake In Electrify America
By Sahil Gupta
1 mins read
Published on July 8, 2021
- Volkswagen group is looking for investment of $1 Billion
- Electrify America was founded as a part of VW's settlement with the EPA
- It's the largest charging network in North America with over 600 stations
The Volkswagen group has made a huge investment in electric vehicles after the "diesel gate" was exposed. One of the things it did in its settlement with the US authorities was step Electrify America the biggest charging network in North America. Now it is planning on selling a stake in Electrify America which would come with. $1 billion investment for the expansion of the charging network.
"Volkswagen is to sell a stake in its electric vehicle charging unit Electrify America, two people familiar with the matter said, as the carmaker looks for outside funds to build infrastructure for battery-powered cars. Volkswagen is working with Citi to look for a co-investor that is prepared to inject roughly $1 billion into the division, the people said, adding that the company is expected to shortly reach out to infrastructure groups and other potential investors," said a Reuters report.
This comes at a time when every element of the VW group is investing heavily in electric vehicles. Volkswagen has also launched the ID.4 in the US while its subsidiaries Audi and Porsche have invested heavily in EVs, Audi has launched its eTron line of vehicles, while Porsche has launched the Taycan which is one of the best EVs around.
Earlier this week, the VW group sold Bugatti to electric hypercar maker Rimac. The result of which Porsche gets a 24 per cent stake in the newly formed Rimac Group. Porsche also gets a 45 per cent stake in the subsidiary of the group Bugatti-Rimac, which many are calling the ultimate electric hypercar company as now under one organisation, as manufacturers of two of the fastest car ranges in the world.
In a response to Electrek, Electrify America denied any plans and refrained from sharing anything. "Electrify America, the largest open DC fast-charging network in the U.S., is accelerating the rate of charging infrastructure installations across the U.S., currently with more than 630 charging stations and over 2,700 individuals chargers at those stations. We are focused on having about 800 stations and 3,500 chargers by the end of 2021. We have nothing to share beyond those plans," said a report by Electrek.
Volkswagen probably wants to reduce its capital expenditure on Electrify America considering its gargantuan investments in the EV space, the largest of any automaker in the world by an order of magnitude. It is rapidly investing in software, hardware, manufacturing capabilities while also reinventing its supply chain with investments in startups like QuantumScape.
It is perhaps looking to convert Electrify America into Ionity which is a charging network in Europe that's co-owned by BMW, Ford, Hyundai and Volkswagen. Investment from third parties will also help it rapidly expand the network and also advance the charging technology which will help it better take on Tesla.
Last Updated on July 8, 2021
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