The brain trust at Volkswagen is turning to one of its newest business partners to propel the company’s vehicles into the green age. Volkswagen is advancing its partnership with battery manufacturer Sanyo to achieve the goal of a hybrid vehicle in the 2010 model year. The two companies have worked together on NiMH battery packs and the goal of the renewed partnership is a new line of Li-ion batteries.
Sanyo has been intimately involved in the greening of the automotive industry in the 21st century. Ford Motor Company and Honda have worked with Sanyo to develop hybrid batteries to keep up with Toyota’s Prius and Camry. Volkswagen has worked with Sanyo since January 2006 when the two companies collaborated on NiMH battery systems. The battery maker supplied Volkswagen with sample packs that used super alloy electrodes for amplified power and durability.
The financial particulars of the Volkswagen-Sanyo partnership show that both sides are committed to a massive rollout in the next few years. Sanyo is devoting a majority of its Tokushima plant to the new Li-ion batteries with the hopes that 20,000 units could be produced yearly. Sanyo and Volkswagen plan on spending $763 million on its hybrid initiative by 2015 with the end goal of producing 10 million fuel cells each month thereafter. The aforementioned investment is intended for new plants as well as a potential plug-in hybrid drive train that could be ready for market by 2011.
It is clear that Volkswagen is feeling the buzz of a successful showing at the Geneva Auto Show in March 2008. The Sanyo NiMH batteries featured in the Volkswagen Golf TDI hybrid earned acclaim from writers, industry experts and consumers. This diesel/electric hybrid could not be driven by consumers skeptical of its 69 mpg claim though the promise of a greener Volkswagen was a pleasant thought for many observers.
There are two benefits to Volkswagen’s expanded partnership with Sanyo. The mass production of Li-ion batteries instead of NiMH batteries will drive down the price per unit for these longer-lasting products. Another reason why consumers should be satisfied with the Volkswagen/Sanyo alliance is that it portends a change in the conversation about biofuels in Europe. Volkswagen’s legacy in Germany and continental Europe means that it can influence other automakers to see green in more than one way.
