VW will spend billions on EV infrastructure in the U.S. as part...

VW will spend billions on EV infrastructure in the U.S. as part of diesel penance

As part of its compensation for the diesel crisis, Volkswagen will spend $2 billion in the U.S. on zero-emissions vehicle infrastructure, with the automaker having launched a subsidiary to manage its ZEV infrastructure projects. The $2 billion investment will fund more than 300 charging stations in 15 metro areas and more than 500 charging stations across the country, with the automaker also planning to devote a portion of the investment to create a cross-country charging network.

Named Electrify America LLC, this wholly owned subsidiary will also launch a "Green City" initiative in one California municipality to test future ZEV concepts, such as EV car-sharing programs or an EV shuttle service. The city in which VW will test these concepts has not been named yet.

"Volkswagen Group of America will accomplish its mission in four 30-month investment cycles, with planning for the first cycle underway," the company said in a statement. "We welcome input and proposals, but caution that some submissions might not fit within the scope of our initiatives for the first 30-month investment cycle. Other promising ZEV initiatives, such as hydrogen fueling stations or national ZEV car-sharing or ZEV ride-sharing services, will be considered in later investment cycles."

As part of its initiative, VW will also advertise the benefit of electric mobility, in addition to increasing awareness of EVs.

Each of the four investment cycles will be worth $500 million, with the automaker required to get approval from the EPA and the California Air Resources Board.

The announcement of the ZEV-focused subsidiary follows a settlement with U.S. agencies that has largely resolved criminal and civil claims against the automaker, with VW agreeing to spend an additional $4.3 billion to settle the claims, which includes guilty pleas. The settlement with the Department of Justice was reached in the last few days of the Obama administration, and it was preceded by the arrest of a VW executive in Florida and the indictment of several other individuals, who are unlikely to be extradited from Germany.



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