The WSJ reported (March 14) "Volkswagen is planning investments of close to $200 billion over the next five years, of which 68% ($131 billion) would be devoted to the development of electric vehicles (EVs) and new digital technology, with a particular focus on expansion in China and the US. New projects include also battery plants in Salzgitter, Germany, in Canada, and in Valencia, Spain. In China, where the company has lost market share to Tesla and local rivals, VW has formed strategic alliances by taking stakes in battery and software companies."

Why is it hard for traditional automakers to manage the transition from internal combustion engines to EVs? According to the embedded video, why are electric engines so different? Why is the conversion of existing factories a challenging task?

Which national markets is Volkswagen specifically targeting with its expansion plans? From which sources is Volkswagen raising the needed capital? What are the direct and indirect effects of the Biden administration's Inflation Reduction Act on Volkswagen's investment plans?

Volkswagen faces stiff competition in the EV space. What is VW's main source of competitive advantage in EVs? Which firm-specific assets and advantages can Volkswagen leverage in entering the EV segment? What should VW's sales pitch be as EV production gets under way?