Volkswagen Group is expanding its in-house capability in order to produce an entire electric drive system for future cars and vans.

The car maker expects to reduce costs and improve efficiency by up to 20%, by producing its own components.

Currently, the Volkswagen Technology Group develops and build electric vehicle batteries and motors. It now plans to develop pulse inverters and thermal management systems to be used in future models across the Group's brand portfolio.

Oliver Blume, chair of the Board of Management of the Volkswagen Group, said: “The Volkswagen Group and its brands stand for first-class products and technologies. Thanks to the size and breadth of the Group, as well as our in-house expertise, we can leverage enormous economies of scale. This benefits our customers and makes our vehicles even better.”

The pulse inverter is the brain of the electric drivetrain and is largely responsible for the efficiency and performance of the vehicle. For the first pulse inverter to be “designed by Volkswagen”, the developers of these core components redesigned the hardware and software from the ground up. Thanks to the modular toolkit principle, this can be implemented in everything from entry-level engines to sports cars with an output of over 500kW and more in future. The technology is currently being developed for series production maturity and can already be used with the next MEB generation.

When it comes to thermal management systems, Volkswagen is working on entirely new solutions. While today a large number of individual modules and long hose connections are used, in future these will be replaced with an extremely compact, integrated thermal module. This will control the entire air conditioning, including for the high-voltage battery, and thus will have a major impact on the vehicle’s range and fast-charging capability. The new all-in-one module is also significantly lighter, more robust and more efficient than current systems.

Thomas Schmall, member of the Volkswagen Group Board of Management with responsibility for Technology, said: “Our goal is to achieve technological leadership, also in electric mobility. That’s why here, too, we rely on our internal competencies and, after battery cells and electric motors, we are taking over the development of pulse inverters and thermal management systems. In future, this will make the Volkswagen Group one of the only car manufacturers in the world that’s able to offer a holistically optimised complete system.”