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Volkswagen (VWAGY) to Break Ground with ID.Buzz, OTA 3.0 Software
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Volkswagen AG (VWAGY - Free Report) recently announced plans to invest $7.1 billion, over the next five years in North America and add 25 electric vehicles (EVs) in the region by 2030, including the EV, ID.Buzz. The auto biggie expects to generate minimum 50% of its U.S. vehicle sales from all-electric vehicles within 2030. To this end, the industry player already set a 70% target for electric vehicles in Europe by 2030.
The ID.Buzz, being the main focus of the plan, will be imported initially from Volkswagen's Hanover plant in Germany. The final version though will be assembled in the United States or Mexico.
There is raging demand for ID.Buzz in the United States and VWAGY wants to fully leverage this factor to gain strength in the vehicle production.
The North American investment plan is part of a broader five-year global spending plan, announced in December 2021. It pledges $98 billion for enhancing e-mobility, which also includes construction of battery plants and tie-ups with battery material suppliers. However, it does not include a provision of $1.8 billion or more for additional local battery production to support battery cells that Volkswagen is presently buying from SK Innovation's Georgia plants. VWAGY looks to make efforts in cell production to meet its target of electric vehicle rollout in the region.
The automaker is seeing its Mexican plants in Puebla and Silao getting an upgrade to start building EVs, motors and related components by mid-decade. Volkswagen expects to add nearly four electric SUVs to its U.S. portfolio, starting 2026, which will cover the same segments, currently served by gasoline-powered models, including Taos, Tiguan and Atlas.
In a noteworthy development, VWAGY announced a long-pending generation 3.0 software update for its entire line-up of ID. electric vehicles.
Only a year ago, Volkswagen had announced that it will begin offering over-the-air (OTA) software updates on its array of ID EVs.
Last July, Volkswagen announced that drivers will see regular OTA software updates on the ID line-up every 12 weeks.
The 3.0 update includes a series of new and optional enhanced features like automated driving, charging performance and the AR Heads-up Display.
One of the advanced features will be Travel Assist with Swarm Data. This optional driver-assist technology will help keep the ID EV in the center of the lane and maintain a safe distance from the car right in front of it at a preset speed. Additionally, software 3.0 will bring in an ultrasound radar to allow assisted lane changes at speeds up to 90 km/h. Once the sensors detect that everything is safe, the vehicle will change lanes as long as it detects the driver’s hands on the wheel.
The Park Assist Plus feature enables the vehicle to search a parking space on its own. The driver has to park once and save the parking maneuver so that the EV can repeat the algorithm autonomously next time.
Volkswagen also promises to bring in efficient charging. It is only a matter of time that VWAGY models equipped with the 77 kWh battery pack can charge at a maximum rate of 135 kW using a DCFC, up from 125 kW, imposed previously.
All eyes of the driver fraternity are on the automaker as it is set to take the EV space by storm.
Shares of Volkswagen have declined 32.3% over the past year, underperforming its industry’s 9.8% decrease.
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Volkswagen (VWAGY) to Break Ground with ID.Buzz, OTA 3.0 Software
Volkswagen AG (VWAGY - Free Report) recently announced plans to invest $7.1 billion, over the next five years in North America and add 25 electric vehicles (EVs) in the region by 2030, including the EV, ID.Buzz. The auto biggie expects to generate minimum 50% of its U.S. vehicle sales from all-electric vehicles within 2030. To this end, the industry player already set a 70% target for electric vehicles in Europe by 2030.
The ID.Buzz, being the main focus of the plan, will be imported initially from Volkswagen's Hanover plant in Germany. The final version though will be assembled in the United States or Mexico.
There is raging demand for ID.Buzz in the United States and VWAGY wants to fully leverage this factor to gain strength in the vehicle production.
The North American investment plan is part of a broader five-year global spending plan, announced in December 2021. It pledges $98 billion for enhancing e-mobility, which also includes construction of battery plants and tie-ups with battery material suppliers. However, it does not include a provision of $1.8 billion or more for additional local battery production to support battery cells that Volkswagen is presently buying from SK Innovation's Georgia plants. VWAGY looks to make efforts in cell production to meet its target of electric vehicle rollout in the region.
The automaker is seeing its Mexican plants in Puebla and Silao getting an upgrade to start building EVs, motors and related components by mid-decade. Volkswagen expects to add nearly four electric SUVs to its U.S. portfolio, starting 2026, which will cover the same segments, currently served by gasoline-powered models, including Taos, Tiguan and Atlas.
In a noteworthy development, VWAGY announced a long-pending generation 3.0 software update for its entire line-up of ID. electric vehicles.
Only a year ago, Volkswagen had announced that it will begin offering over-the-air (OTA) software updates on its array of ID EVs.
Last July, Volkswagen announced that drivers will see regular OTA software updates on the ID line-up every 12 weeks.
The 3.0 update includes a series of new and optional enhanced features like automated driving, charging performance and the AR Heads-up Display.
One of the advanced features will be Travel Assist with Swarm Data. This optional driver-assist technology will help keep the ID EV in the center of the lane and maintain a safe distance from the car right in front of it at a preset speed. Additionally, software 3.0 will bring in an ultrasound radar to allow assisted lane changes at speeds up to 90 km/h. Once the sensors detect that everything is safe, the vehicle will change lanes as long as it detects the driver’s hands on the wheel.
The Park Assist Plus feature enables the vehicle to search a parking space on its own. The driver has to park once and save the parking maneuver so that the EV can repeat the algorithm autonomously next time.
Volkswagen also promises to bring in efficient charging. It is only a matter of time that VWAGY models equipped with the 77 kWh battery pack can charge at a maximum rate of 135 kW using a DCFC, up from 125 kW, imposed previously.
All eyes of the driver fraternity are on the automaker as it is set to take the EV space by storm.
Shares of Volkswagen have declined 32.3% over the past year, underperforming its industry’s 9.8% decrease.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, VWAGY has a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Tesla (TSLA - Free Report) with a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 16.2% over the past year.
LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the remaining one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 5% over the past year.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 10.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.26%, on average. The stock has rallied 39.1% over the past year.