The global automotive industry is undergoing its most fundamental transformation since the invention of the assembly line, and Volkswagen Group is placing what may be the largest single wager of that shift. The German giant has committed over $100 billion to electric vehicle development and production through 2028, a sum that reflects both ambition and necessity. After more than a century of internal combustion dominance, major carmakers are racing to replace gasoline engines with batteries and electric motors, and Volkswagen, based in this industrial city, is determined not to be left behind.
The company launched its dedicated ID. series of electric vehicles in 2020, beginning with the ID.3 hatchback and the ID.4 SUV. In 2022, Volkswagen delivered 330,000 battery EVs globally, a 23% increase from the previous year.
Yet that still leaves it trailing Tesla and China’s BYD, two competitors that have set a blistering pace. Tesla began selling the Model S in 2012 and has since built factories in the United States, China, and Europe, achieving production volumes that legacy automakers are still struggling to match. Chinese companies, led by BYD, have also become formidable competitors, benefiting from a deep domestic supply chain for batteries and materials.
Volkswagen’s Electrification Roadmap
For Volkswagen, the push toward electrification was partly born of crisis. In 2015, the company admitted to cheating on diesel emissions tests, triggering a scandal that damaged its reputation and triggered huge fines. That episode pushed the German giant to embrace electric vehicles as a way to reinvent itself.
The company’s roadmap is now among the most aggressive of any legacy automaker: it plans to have 25 EV models on the market by 2025 and aims for half of its global sales to be fully electric by 2030. To support that goal, Volkswagen operates dedicated EV factories in Zwickau and Emden, Germany, as well as a facility in Chattanooga, Tennessee.
The $100 billion commitment through 2028 is a bet that the company’s engineering heritage and global reach will translate into a commanding EV market share. Volkswagen’s home base in Germany is the heart of the continent’s automotive industry, and its factories in Zwickau, Emden, and Chattanooga are already producing ID. series vehicles. Yet the company must scale up rapidly to meet its 2025 and 2030 targets.
American Rivals Pour Billions Into EV Race
Volkswagen’s production footprint in the United States places it directly in the path of two formidable American competitors, Ford and General Motors, each pursuing its own electrification strategy with billions in investment. Ford Motor Company, founded in 1903 by Henry Ford, announced in 2022 that it would invest $50 billion in EVs through 2026.
Ford launched the Mustang Mach-E in 2020, selling 39,000 units in 2021 and 65,000 in 2022. The F-150 Lightning, an all-electric version of America’s best-selling pickup, went on sale in April 2022 with over 200,000 pre-orders. To power that surge, Ford is building two battery plants in Kentucky and one in Tennessee as part of a joint venture with SK On, a South Korean battery maker, with a total investment of $11.4 billion.
Ford has a long history with electric mobility—its founder, Henry Ford, collaborated with Thomas Edison on early battery experiments—but the company never mass-produced a fully electric car until the Mustang Mach-E arrived in 2020. General Motors, founded in 1908, has committed $35 billion to EVs through 2025 and plans to sell only zero-emission vehicles by 2035.
GM’s Ultium battery platform, developed with LG Energy Solution, underpins a range of vehicles including the GMC Hummer EV, Cadillac Lyriq, and Chevrolet Silverado EV. GM sold 39,000 EVs in the US in 2022, including 22,000 Chevrolet Bolt models. The Ford F-150 Lightning’s 200,000 pre-orders and GM’s aggressive Ultium rollout underscore the intensity of the American market.
Both companies see electrification as essential to their survival in a market that is rapidly leaving the internal combustion engine behind. The wider picture reveals a landscape where legacy automakers are pouring tens of billions into new platforms, battery supply chains, and factory retooling.
What the Global EV Race Means for Drivers
The competition reshaping global supply chains is also creating new jobs in battery manufacturing and forcing governments to expand charging infrastructure. The shift has been accelerated by tightening emissions regulations in Europe, China, and parts of the United States, as well as by the market success of Tesla, which proved that electric vehicles could be desirable and profitable. For drivers, what is at stake is the cost, availability, and variety of electric vehicles.
If established automakers succeed in scaling up production, prices are expected to fall, making EVs accessible to a much broader share of buyers. If they stumble, consumers will face fewer choices and longer waits for affordable models.
The dual challenge from Tesla and Chinese automakers like BYD means Volkswagen and Ford cannot afford to hesitate. Their investments in new factories, battery supply chains, and software development represent not just an opportunity but a necessity if they want to remain relevant in the world’s largest auto markets. The outcome over the next decade will determine not just which companies lead the industry, but how quickly the world moves away from fossil-fuel transportation.
