Volkswagen has developed a new battery-electric powered distribution truck and is working on additional electric solutions for medium- and heavy-duty distribution transport for the European market.

Volkswagen Truck & Bus, which includes brands such as MAN, Scania, Volkswagen Caminhões e Ônibus, and RIO, revealed the e-Delivery truck and announced additional green initiatives at Innovation Day in Hamburg, Germany. The automaker’s e-Delivery truck is designed to improve sustainability in the delivery of goods. Meanwhile, further initiatives are also being implemented to find alternative ways to electrify heavy-duty trucks to accommodate range and load capacity for long-haul traffic.

Initiatives outlined as executives laid out VW's long-term plans for shaping the future of transportation included addressing concerns regarding load capacity of battery technology vehicles by turning to combustion engines powered by gas or biodiesel, according to the automaker. Volkswagen Truck & Bus is also creating alternative-drive solutions for city buses in Europe.

The e-Delivery truck will be developed in Brazil and will roll off assembly lines in 2020.
Volkswagen will commit approximately $1.7 billion by 2022 for the continued development of the technology, which will also include autonomous systems and cloud-based software, according to Bloomberg.

VW's electric truck technology will also find its way to the U.S. by 2020, as Navistar expects to be in a position to launch its first medium-duty electric powered vehicle for the U.S. and Canadian markets through its alliance with Volkswagen Truck and Bus.

Volkswagen also announced that it was working on how autonomous driving can make the transportation of goods more sustainable. Efforts such as these will curb, fuel consumption and decrease accidents, VW says. Volkswagen Truck & Bus Group is also actively advancing connected driving in transportation across all modes of transport to connect the entire supply chain and achieve the greatest efficiencies, according to the company.