Volkswagen shares rise as vehicle maker announces expansions of electric auto production

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To accommodate production, Müller said the company will adapt nine production sites to handle electric-vehicle production.

But Volkswagen made a point of not abandoning fossil-fuel vehicles Tuesday.

And for China, whose regulations will require perhaps the steepest production increase in plug-in electric vehicles, it has concluded a deal with Contemporary Amperex Technology Ltd., or CATL.

In 2015, Volkswagen was caught rigging cars to cheat on US diesel emissions tests and paid more than 20 billion euros in fines and legal settlements.

Volkswagen also reiterates its sales revenue forecast to be up as much as 5 percent year over year and operating profit to between 6.5 and 7.5 percent, the company said in the statement.

Critically, the German automaker has already secured battery supply contracts for vehicles that will be sold in Europe and China, with contracts worth Euro 20 billion (~$25 billion USD). VW Group says this is just to line up batteries for vehicles to be built in Europe and China; a decision about a supplier for North American production "will be [made] shortly", it said in a press release.

VW's emissions scandal, new Chinese quotas for electric cars and tightening rules on carbon dioxide (CO2) emissions in Europe are causing automakers to focus on green cars and self-driving technology.

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From 2019, Müller insisted, the Group that owns Porsche, Audi, Bentley, Lamborghini, Seat, Skoda and Bugatti would launch a new electric vehicle "virtually every month".

It is a Golf-sized compact vehicle with the interior room of a mid-size auto due to the long cabin permitted by its electric powertrain.

Perhaps the most rapturously received electric concept, though was the Volkswagen ID Buzz, a modern-day all-electric interpretation of the classic Microbus, or Type 2 transporter. The ongoing initiative will see 16 sites around the world become home to battery-powered vehicle production before the end of 2022 - a significant jump from the mere three facilities where VW Group's electric vehicles are now being built.

That indicates the range may well include cargo and delivery versions as well as multi-window passenger models.

Certainly VW is keen to move away from its diesel cheating scandal-CEO Mueller suggested last week it expected diesels to continue as part of its European offerings.

The production plan is an update on the original plan called "Roadmap E" announced previous year.

Certainly the skeptics will have to wait nearly two years to see if long-range electric cars actually do land in showrooms in Europe, China, and North America.

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