Dive Brief:
- The Volkswagen Group is overhauling its electric vehicle charging and energy business, which it expects to drive revenue growth in the future, the company said Monday.
- Giovanni Palazzo became the Volkswagen Group’s head of charging and energy July 1. He will lead new business model development with plans to further integrate the company’s electrification efforts.
- The Volkswagen Group plans to offer load management, energy market optimization and energy trading services in addition to expanding its fast-charging network.
Dive Insight:
Volkswagen Group, which owns Audi and Porsche, recently made several leadership changes as CEO Oliver Bloom retools the company’s electrification strategy. Other automakers, including Stellantis, are also launching charging and energy management services to support their transition to electric vehicles and diversify their businesses.
"We recognized early on that charging and energy is one of the most important future fields for the ramp-up of electric mobility and the energy transition. It is therefore crucial to develop our own products and services along the entire value chain and to conclude strategic partnerships in the energy sector," Volkswagen Group Technology CEO Thomas Schmall said in a statement.
The German automaker wants to increase collaboration between its Germany-based energy and mobility services business Elli and its U.S.-based EV charging infrastructure operator Electrify America.
"We want to further expand this expertise along the entire value chain and verticalize the energy management business, which will be an important revenue driver in the future. This is based on a new strategic orientation, new business models and closer cooperation within the division as well as with Volkswagen Group’s brands,” Palazzo said in a statement.
Palazzo will continue to serve as Elli’s CEO and head of sales in addition to his new role as senior vice president for Volkswagen Group Charging and Energy. He was the CEO of Electrify America from 2018 until June 1, when Robert Barrosa took the helm.
The Volkswagen Group plans to offer charging management services for fleet customers starting next year.
