Volkswagen and Toyota have promised to spend millions of dollars to remove Tesla from power

The epic battle over who controls the future of the auto industry About to be a lot more interesting.

Tesla, the trend-setting pioneer, has mastered the dawn of the new energy era, capturing investor imaginations with a vision of what the next generation of vehicles will look like and tapping into the nascent market for all-electric cars. Huh.

In the other ‘corner of the ring’ are the massive giants: Volkswagen and Toyota. The world’s two largest automakers – each sold about 10 to 11 cars for every Elon Musk sold Last year– They learn that the era of the battery-powered vehicle has arrived and they try to figure out how to stay on top.

Five days apart from last month, these masters of mass production planned massive spending of 170 billion dollars To maintain their position in the coming years in an industry they have dominated for decades.

Senior executives are well aware that the transition to the internal combustion engine will not be systematic. Things could get ugly, something that happened when Apple entered the mobile phone market and overtook Nokia. who once dominated.

after a year outstanding growth during which Tesla became, until now, Most Valuable Automotive Manufacturer of All TimeThe $trillion question is whether the advantages of Musk’s next generation of car manufacturing are as insurmountable as his company’s market capitalization suggests.

“When the two biggest car companies in the world decide to go electric, it’s no longer speculation: Main stream electricity goingAndy Palmer, former Aston Martin CEO and Nissan Motor executive, is often called the “godfather of electric vehicles” after helping develop the Japanese automaker’s battery-powered Leaf. The switch is faster than everyone expected.”

The most flamboyant giant to compete with Musk is VW, which has grown into a conglomerate of a dozen brands over 84 years with nearly 120 locations worldwide and an employer of more than 671,000 people. VW Group generates about $280 billion annually.

Every year that CEO Herbert Diess has been at the helm, VW announces an unbeatable budget for electrification. On 9 December, it delivered its largest ever plan, allocating €89 billion for the development of electric vehicles and software over the next five years.

Days constantly uses Musk measuring stick, so much so that it has recognized that it bothers something within VW. In October, they welcomed Musk surprise guest At an executive conference with 200 of the automaker’s top managers.

In the first 10 months of 2021, VW delivered approximately 322,000 fully electric vehicles, more than half of its sales target of 600,000.

VW has also delivered strong results within the group with its higher-priced EV models. Taycan, for example, Will outrun the iconic 911 sports car, More electric Porsche cars are on the way, and the brand is expected to unveil an all-electric version of its popular Macan SUV next year.

is shown Toyota’s long-term position To the future a few months ago at a race track in the hills of western Japan. While the company took its battery-powered bZ4X electric SUV, the car that Akio Toyoda drove around the circuit was the Corolla Sport H2 Concept equipped with a hydrogen engine.

“As we head into uncertainty, we need a variety of solutions,” the grandson of the Toyota founder said during a press conference on November 13. “We don’t want to be tied to just one choice.”

Diversity is one thing; Being absent is another matter. Pioneer, the hybrid powertrain known for the Prius, admitted it was “a while” for a fully electric model, and that was four years ago. Toyota’s first global mass market electric vehicle won’t debut until the middle of this year.

But weeks after turning into a hydrogen car, Toyoda has unveiled a slew of futuristic products. When the first curtain was unveiled at a press conference on an artificial island in Tokyo Bay, it was surrounded by five electric vehicles.

Toyoda gave a short sales pitch for each vehicle, then raised its palms skyward before another curtain revealed 11 more battery-electric models. “Welcome to our showroom of the future,” he said while announcing plans to launch 30 electric vehicles by the end of the decade.

Toyota spends 8 trillion yen on electrification over that period, with half going to fully electric models. The manufacturer aims to sell 3.5 million EVs annually by the end of the decade, almost double the target set just seven months ago.

Toyota needed a little effort to reach this point. There were cautionary comments from officials objecting to general industry enthusiasm for electric vehicles, and some investors and environmental groups. He criticized the automaker for the delay, Last summer, Anders Schelde, chief investment officer at Danish pension firm AcademiaCorporation, which owns shares of Toyota, said he doesn’t see management’s attitude toward electric vehicles as a long-term winning strategy.

While the attack on Toyota should be taken seriously, VW has begun with its VE push, showing that the transition to power won’t be just a matter of flipping a switch.

In addition, Tesla is doing its bit: The company just closed a year in which it delivered more than 936,000 vehicles — nearly 90 percent more — and already charts investments of up to 1.2 billion yuan in its Shanghai plant. has made. Which takes two years to upgrade equipment and pushes production to more than its declared capacity of 450,000 units per year. This would add another 4,000 workers to the facility, bringing the total to about 19,000.