Why is Volkswagen so Cheap?

Forget the emissions scandals – here’s one of the largest electric vehicle efforts.

Andrew Willis 29 October, 2021 | 4:28AM
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Andrew Willis: From ‘dieselgate’ to antitrust concerns, Volkswagen (VWAGY) has seen a roller-coaster recovery since 2015. But today, with its ambitions in the electric vehicle space, the auto giant looks more like a five-star discount.

Senior equity analyst Richard Hilgert says that the company has one of the most aggressive plans to transition to battery electric vehicles from internal combustion, with 27 new models as early as next year. And a battery cell strategy that targets 80% of sales volume by 2030.

We like the fact that from Audi, to Porsche, to Bentleys, Lamborghinis and Bugattis, Volkswagen uses common platforms for different models, which is a big cost-saver. And could help a company producing around 10 million vehicles a year to suddenly enter the EV arena…

For Morningstar, I’m Andrew Willis.

 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Volkswagen AG ADR28.45 USD-2.54Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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