Volkswagen plans to build its own electric powertrains at its existing engine plant in Salzgitter, Germany.
The news comes just a couple weeks after GM said it would design and manufacture electric motors for its future hybrids and electric vehicles in-house.
Volkswagen will set up new components organization to become the electric powertrains supplier across the entire Volkswagen’s line.
The first electric powertrains will appear in the VW E Up! electric car we saw back at Frankfurt Motor Show last September. That electric car will hit the market in 2013 and will likely come to the States.
VW is carrying out joint research and development with Sanyo and Toshiba, as well as China’s BYD.
[source: Automotive News / subscription required]