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Germany Goes All in On EVs: VWAGY, BAMXF and DDAIF in Focus
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Electric vehicles (EV) with zero emissions are the hottest trend in the auto industry. Amid heightening climate concerns, Germany has been doubling down on its efforts toward e-mobility. Auto companies of the country are under immense pressure to switch to clean mobility. This would require large sums of investment, which will be particularly difficult at a time when the firms are dealing with coronavirus-led sluggish vehicle demand. Amid the craze for red-hot EV maker Tesla (TSLA - Free Report) and the increasing popularity of green vehicles, several automakers worldwide are revising their electric goals.
Germany Revs Up EV Incentives
Early this month, there were reports that the German government would offer a €2 billion stimulus to the nation’s automotive industry in a bid to bolster the transition toward green vehicles. In addition to e-mobility and driverless technology, the funds will be allocated toward 3D printing parts, digitization of supply chains, and employee training between 2021 and 2024. The program would see the government covering nearly 60% of the transition costs for large companies and 80% for small to medium ones, in their efforts toward making the production facilities more environment-friendly.
Germany is providing incentives to buyers of battery-powered EVs until the end of next year. Buyers of fully-electric cars with a price ceiling of €40,000 will be eligible for a grant of €9,000, one third of which will be funded by carmakers. Buyers of plug-in hybrids costing up to 40,000 euros will also get higher subsidies with 4,500 euros from the government and 2,250 euros from automakers. From 2022 onward, incentives would be reduced for the plug-in-hybrids but all electric cars will continue to get government support via grants till 2025.
Germany also aims at fostering the creation of EV charging stations in as many locales as possible. Every gas station in the country needs to install EV charging stations. As part of Germany’s chancellor Angela Merkel’s Climate Protection Program 2030, Germany aims to put 10 million electric cars on the nation’s roads by 2030. Merkel has also set a goal of having a million electric charging stations across the country by 2030.
Volkswagen: Volkswagenremains committed toinvesting 33 billion euros in e-mobility by 2024. It also intends to spend around 14 billion euros in technology and autonomous driving. The plans are in sync with the firm’s objective to go carbon neutral by 2050.The firm aims 40% of its global car sales to be fully electric by 2030.The deal between Volkswagen and Electrify America also highlights the automaker’s aggressive stance with regard to the EV race.
Scheduled for a global debut during the first quarter of 2021, Volkswagen’s ID.4 electric SUV is based on the modular MEB platform. The MEB platform, which supports the ID 3 and ID 4, will also provide the platform of the ID.5 coupé-SUV, ID.6 and ID Buzz.
The company is set to develop a small electric car for the mass market in Europe. Under this project, Volkswagen anticipates to develop a 100% electric car, which is anticipated to be cheaper than ID.3 and will be available between 20,000euros and 25,000 euros ($24,000-30,000).
Notably, Volkswagen plans to invest 15 billion euros by 2024-end to increase electrification efforts in China. The auto biggie aims to develop 15 new electric or hybrid models in China by 2025.The EVs will be based on the MEB architecture at its two new dedicated modular electric drive matrix manufacturing facilities in China. The company has been collaborating with local battery suppliers in China to meet its future requirements.
BMW: BMW is committed to selling more than 7 million EVs — comprising both hybrids and fully electric cars — by the end of next decade. The automaker targets two-thirds of the sales to come from fully electric vehicles. The company has pledged to invest around €30 billion toward e-mobility by 2025 end.
By 2025, BMW is set to introduce nine new electric car models including iX3, i4 and iNEXT.The BMW i4and BMW iNEXT, which is an all-electric crossover, will come on the market in 2021, while the BMW iX3, an all-electric SUV, is due to go on sale before 2020 end.
The BMW Concept i4 is claimed to be capable of running up to 600 km on a single charge. With a 150kW charger, the i4's battery can be charged to 80% in 35 minutes. BMW iX3 will rely on a 74-kWh battery pack, which will enable it to travel up to 273 miles (440 kilometers), on a single charge. BMW iNext is expected to include hardware that could take the iNext to Level 3 autonomy at up to 80 MPH.
Daimler: Daimler— Mercedes Benz’s parent company— targets a carbon neutral new-vehicle fleet by 2039. The company desires its electrified portfolio’s share to be 50% of its global sales by 2030. To keep up in the race to EV supremacy, Mercedes-Benz has decided to reorient its model lineup, inclining the fleet toward electric vehicles. The German automaker unveiled plans of producing bigger all-electric models first, eventually moving into its special divisions — AMG brand, its ultra-luxury Mercedes-Maybach brand and the G models. By 2025, the company will start adding smaller EVs to the lineup.
The company also revealed the four all-new EVs that will be developed on its upcoming platform —Electric Vehicle Architecture (EVA). The first vehicle will be its fully-electric sedan called the EQS, set to debut next year that will be built on the company’s new modular electric vehicle platform. The EQS will be an all-electric, S-Class-like luxury sedan. Following that will be the EQE, EQS-SUV and EQE-SUV.
In sync with its electrification goals, Daimler Trucks aims to offer EVs in all its key sales region by 2022. Series production of the eCascadia and the Freightliner eM2 is slated to begin mid-2022 and in late 2022, respectively. Production of the eActros and eEconic is scheduled to commence in 2021 and 2022, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Germany Goes All in On EVs: VWAGY, BAMXF and DDAIF in Focus
Electric vehicles (EV) with zero emissions are the hottest trend in the auto industry. Amid heightening climate concerns, Germany has been doubling down on its efforts toward e-mobility. Auto companies of the country are under immense pressure to switch to clean mobility. This would require large sums of investment, which will be particularly difficult at a time when the firms are dealing with coronavirus-led sluggish vehicle demand. Amid the craze for red-hot EV maker Tesla (TSLA - Free Report) and the increasing popularity of green vehicles, several automakers worldwide are revising their electric goals.
Germany Revs Up EV Incentives
Early this month, there were reports that the German government would offer a €2 billion stimulus to the nation’s automotive industry in a bid to bolster the transition toward green vehicles. In addition to e-mobility and driverless technology, the funds will be allocated toward 3D printing parts, digitization of supply chains, and employee training between 2021 and 2024. The program would see the government covering nearly 60% of the transition costs for large companies and 80% for small to medium ones, in their efforts toward making the production facilities more environment-friendly.
Germany is providing incentives to buyers of battery-powered EVs until the end of next year. Buyers of fully-electric cars with a price ceiling of €40,000 will be eligible for a grant of €9,000, one third of which will be funded by carmakers. Buyers of plug-in hybrids costing up to 40,000 euros will also get higher subsidies with 4,500 euros from the government and 2,250 euros from automakers. From 2022 onward, incentives would be reduced for the plug-in-hybrids but all electric cars will continue to get government support via grants till 2025.
Germany also aims at fostering the creation of EV charging stations in as many locales as possible. Every gas station in the country needs to install EV charging stations. As part of Germany’s chancellor Angela Merkel’s Climate Protection Program 2030, Germany aims to put 10 million electric cars on the nation’s roads by 2030. Merkel has also set a goal of having a million electric charging stations across the country by 2030.
How are German Auto Giants Faring in the EV Race?
Major German auto bigwigs like Volkswagen (VWAGY - Free Report) , Daimler AG and BMW AG (BAMXF - Free Report) are focusing on radically electrifying their line-ups. While BMW currently sports a Zacks Rank #1 (Strong Buy), Volkswagen and Daimler carry Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Volkswagen: Volkswagenremains committed toinvesting 33 billion euros in e-mobility by 2024. It also intends to spend around 14 billion euros in technology and autonomous driving. The plans are in sync with the firm’s objective to go carbon neutral by 2050.The firm aims 40% of its global car sales to be fully electric by 2030.The deal between Volkswagen and Electrify America also highlights the automaker’s aggressive stance with regard to the EV race.
Scheduled for a global debut during the first quarter of 2021, Volkswagen’s ID.4 electric SUV is based on the modular MEB platform. The MEB platform, which supports the ID 3 and ID 4, will also provide the platform of the ID.5 coupé-SUV, ID.6 and ID Buzz.
The company is set to develop a small electric car for the mass market in Europe. Under this project, Volkswagen anticipates to develop a 100% electric car, which is anticipated to be cheaper than ID.3 and will be available between 20,000euros and 25,000 euros ($24,000-30,000).
Notably, Volkswagen plans to invest 15 billion euros by 2024-end to increase electrification efforts in China. The auto biggie aims to develop 15 new electric or hybrid models in China by 2025.The EVs will be based on the MEB architecture at its two new dedicated modular electric drive matrix manufacturing facilities in China. The company has been collaborating with local battery suppliers in China to meet its future requirements.
BMW: BMW is committed to selling more than 7 million EVs — comprising both hybrids and fully electric cars — by the end of next decade. The automaker targets two-thirds of the sales to come from fully electric vehicles. The company has pledged to invest around €30 billion toward e-mobility by 2025 end.
By 2025, BMW is set to introduce nine new electric car models including iX3, i4 and iNEXT.The BMW i4and BMW iNEXT, which is an all-electric crossover, will come on the market in 2021, while the BMW iX3, an all-electric SUV, is due to go on sale before 2020 end.
The BMW Concept i4 is claimed to be capable of running up to 600 km on a single charge. With a 150kW charger, the i4's battery can be charged to 80% in 35 minutes. BMW iX3 will rely on a 74-kWh battery pack, which will enable it to travel up to 273 miles (440 kilometers), on a single charge. BMW iNext is expected to include hardware that could take the iNext to Level 3 autonomy at up to 80 MPH.
Daimler: Daimler— Mercedes Benz’s parent company— targets a carbon neutral new-vehicle fleet by 2039. The company desires its electrified portfolio’s share to be 50% of its global sales by 2030. To keep up in the race to EV supremacy, Mercedes-Benz has decided to reorient its model lineup, inclining the fleet toward electric vehicles. The German automaker unveiled plans of producing bigger all-electric models first, eventually moving into its special divisions — AMG brand, its ultra-luxury Mercedes-Maybach brand and the G models. By 2025, the company will start adding smaller EVs to the lineup.
The company also revealed the four all-new EVs that will be developed on its upcoming platform —Electric Vehicle Architecture (EVA). The first vehicle will be its fully-electric sedan called the EQS, set to debut next year that will be built on the company’s new modular electric vehicle platform. The EQS will be an all-electric, S-Class-like luxury sedan. Following that will be the EQE, EQS-SUV and EQE-SUV.
In sync with its electrification goals, Daimler Trucks aims to offer EVs in all its key sales region by 2022. Series production of the eCascadia and the Freightliner eM2 is slated to begin mid-2022 and in late 2022, respectively. Production of the eActros and eEconic is scheduled to commence in 2021 and 2022, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>