Volkswagen sells minority stake in Electrify America

In the wake of its diesel emissions scandal, Volkswagen AG is selling a minority stake in Electrify America, the electric-car charging subsidiary that the German automaker established in the wake of its diesel-emissions scandal.

The partners investment of $450 million in the network brings Electrify America's value to $2.45 billion, the companies said Tuesday in a joint statement. The investment by Siemens, which will hold a seat on the board, amounts to a roughly 10% stake in the company, people familiar with the matter said.

With our investment in Electrify America, we are giving a boost to e-mobility in North America, according to Thomas Schmall, head of VW components group.

The injection of cash will help fund VW's goal of doubling the number of electric vehicle charging stations the company operates in North America to 1,800 locations and 10,000 fast chargers by the year 2026.

Electrify America has more than 3,500 charging ports in the US and Canada with 807 stations, according to the Department of Energy. The network has agreements with Ford Motor Co. and Hyundai Motor Co. on electric vehicle charging. VW and Siemens are close to a stake sale, according to the Wall Street Journal.

Volkswagen is behind the industry s biggest push into electrification while working to boost its anemic market share in the US. In 2017, the automaker agreed to spend $2 billion on infrastructure and other projects to promote the adoption of zero-emission vehicles, setting up Electrify America LLC as part of its legal settlement with US authorities after the company s cheating on emissions levels in its diesel engines.

Siemens has been selling noncore businesses as part of a plan to boost margins with digital services, and has been investing in new technologies and software. The German industrial giant said it is spending $54 million at its electrical infrastructure hub in Grand Prairie, Texas to make EV charging equipment.

In June, Siemens also invested $25 million for a minority stake in WiTricity, a US-based company that offers wireless charging solutions for electric vehicles.

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