Volkswagen Group of America launched a U.S. subsidiary that will manage $2 billion in investments in zero emission vehicles and infrastructure over a decade as part of a court settlement over its cheating on emissions tests for several years.
Dubbed Electrify America LLC, the company plans to install more than 500 charging stations nationwide, including more than 300 stations in 15 metro areas, and to develop a high-speed, cross-country network consisting of more than 200 fast-charging stations for electric cars.
Volkswagen will also launch a “Green City” initiative in a yet-to-be-identified California city to pilot future concepts, including potentially a ZEV-based shuttle service, an EV-based car-sharing program, or a ZEV transit program.
The company will make four $500 million investments every 30 months and must get approval from the California Air Resources Board and the EPA for spending. VW must submit draft plans to regulators on the first funding plan by Feb. 22.
VW agreed to spend the money on infrastructure and other projects to promote the adoption of zero-emission vehicles as part of a legal settlement with the U.S. EPA stemming from the company’s cheating on emissions tests for its diesel cars.
Volkswagen markets one model of electric car in the U.S. — the e-Golf — and has set a target of selling between 2 and 3 million electric vehicles worldwide by 2025. The strategy is backed by the planned introduction of 20 new electric models by 2020.