Volkswagen Prepares For Europe's 2035 Fossil-Fuel Car Ban: Report

Volkswagen AG (OTC: VWAGY) (OTC: VLKAF) reportedly said it is prepared for Europe's scheduled 2035 ban on new sale of fossil-fuel cars as the German automotive manufacturer ramps up its electric vehicle lineup.

Volkswagen will be able to reduce its battery expenses via a 50% drop in cost at the cell level through its partnerships in China, Reuters reported, citing a statement from CEO Oliver Blume at Munich's IAA mobility show.

In the year's first half, the automaker led the European market in the BEV segment, with deliveries increasing by 68% to 217,100 vehicles.

"We know how to build cars, with top quality. We will have to work hard on the cost side," Blume told Reuters. "I think we have great chances."

In China, first-half deliveries were around 2% below the previous year's level.

VWAGY Price Action: Volkswagen shares closed 5.57% down at market close Friday. After-hours trading saw shares up 0.037% at $13.49.

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Photo: ID. GTI Concept, Courtesy Volkswagen