Disbursement Of Large VW And BMW Funds To Compete With Tesla

JAKARTA - The development of electric cars is currently massive. Manufacturers like Tesla dominate the electric vehicle market segment. This is what makes car manufacturers like BMW and VW eager to compete with Tesla.

Tesla has controlled the electric car market for nearly a decade. In 2022, for example, Tesla reported a global sales record of more than 1.3 million cars.

BMW and VW reportedly did not hesitate to disburse billions of US dollars to develop an electric car program to balance the company owned by Elon Musk as well as face the future market of electric vehicles.

Reporting from Carscoops, Saturday, March 18, BMW and VW are overshadowed by a haunted past story to focus on electric cars.

As is known, Volkswagen actually entered the world of Electric Vehicle (EV) with e-Golf in 2014, but VW was hit by a "dieselgate" scandal that occurred a year later when the United States Environmental Protection Agency (EPA) issued a notification for violations of the clean air law to Volkswagen Group.

Meanwhile, BMW, already to develop EVs in 2013 in i3 cars. However, BMW does not continue and prefers to focus on hybrid cars rather than developing EVs.

BMW is currently still open to options to support e-fuel technology to extend the life life of combustion engines and develop hydrogen cars. However, BMW hopes that more than 50 percent of its latest car sales will come from EVs, before the internal 2030 target.

BMW revealed that they allocated 8.3 billion US dollars (or IDR 127 trillion) or 5.5 percent of its revenue for capital expenditures and overall investments in order to prepare for the launch of the next EV.

However, the value issued by BMW is not comparable to what VW is planning. According to The Wall Street Journal, Wednesday, March 15, VW will spend $191 billion for five years (Rp3 quadrillion).

The two manufacturers hope that the big investment is enough to keep pace with Tesla. Although their competitors don't just come from Tesla.