Volkswagen has a new subbrand – Electrify America image

The Dieselgate scandal is still making ripples across VW’s strategy – at least as far as America is concerned – where the German group has set up a completely new, green subsidiary.

As part of the settlement with the U.S. Environmental Protection Agency, the automaker has revealed it has deployed a new subsidiary called Electrify America – the company will have to manage in excess of $2 billion worth of investments in zero-emission vehicle infrastructure and related programs in the years to come. The company will install more than 500 charging stations across America, with 300 of these stations particularly located in and around 15 metro areas around the country. The rest of upward of 200 charging stations will make up a high-speed, cross-country network.

As part of the same strategy, VW has plans to see the sales of at least three million electric cars in the U.S. by 2025, and will also set up a “Green City” for testing and development purposes of zero-emissions vehicles and infrastructure. The location would be somewhere in California and come up with ideas such as ZEV-based shuttle services and EV car sharing programs, among others. VW’s new green plan will see four $500 million payments every 30 months, but still needs approval from the California Air Resources Board and the EPA beforehand. The new subsidiary will be headquartered in Reston, Virginia, and is a separate entity to the automotive brands – headed by VW staff member Mark McNabb as CEO.