Business & Investment

Volkswagen sells shares in charging unit Electrify America-Source by Reuters

© Reuters. File Photo: The new logo of the German carmaker Volkswagen was unveiled on September 9, 2019 at the VW headquarters in Wolfsburg, Germany.Reuters / Fabian Bimmer / File Photo

By Arno Schuetze and Christoph Steitz

Frankfurt (Reuters)-Volkswagen (DE :) plans to sell its stake in Electrify America, an electric vehicle charging unit, two people familiar with the matter said. Automakers are looking for external funding to build battery-powered vehicle infrastructure.

People say Volkswagen is looking for a co-investor ready to inject about $ 1 billion into the sector in collaboration with Citi, and the company will soon become an infrastructure group and other potential investors. He added that he was expected to reach out.

Volkswagen, Electrify America and Citi declined to comment.

Founded in the aftermath of the Volkswagen emissions fraud scandal in the United States, Electrify America will spend $ 2 billion between 2017 and 2026 to expand its electric vehicle (EV) charging stations. ..

According to the company’s website, the unit, which includes superchargers whose main rivals are ChargePoint and Tesla (NASDAQ :), has 635 charging stations and operates approximately 2,850 high-speed loading spots.

This includes an ultra-fast, fast 320 kW charging station that allows the owner to load the car within 20 minutes.

On Volkswagen’s Power Day in March, Electrify America CEO Giovanni Palazzo, who joined Volkswagen from Daimler (OTC :) 10 years ago, said the group plans to expand further. ..

Volkswagen, which announces a new strategy on July 13, is currently seeking to integrate various charging efforts under the charging and energy business area led by Elke Temme, a longtime executive of Germany’s top utility RWE. I will.

Charging infrastructure has attracted several sectors, including utilities, automakers, and major oil companies. All of these want to invest in rising electricity demand in response to the global EV rollout.

Sources told Reuters last week: Renault Both (PA :) and Shell (LON :) were interested in becoming co-owners of Ionity, a European EV charging joint venture owned by BMW Hyundai, Ford, Daimler and VW.

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Volkswagen sells shares in charging unit Electrify America-Source by Reuters

https://www.investing.com/news/stock-market-news/volkswagen-to-sell-stake-in-charging-unit-electrify-america-sources-2551042 Volkswagen sells shares in charging unit Electrify America-Source by Reuters

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