Former Volkswagen chief executive Herbert Diess has founded a new company focused on electric agricultural machinery and plans to launch a mid-range electric tractor in 2027, according to an announcement made by Diess on LinkedIn.
The new company, Diess E-Agrartechnik AG, is based in Munich and aims to develop electric tractors and related infrastructure for farmers and municipal operators. A key feature of the planned vehicle will be a swappable battery system designed to enable continuous operation around the clock.
Diess, who led Volkswagen until 2022, said the electric tractor is intended for both agricultural and municipal applications and will compete directly with conventional diesel-powered models.
“With two driving directions, battery swapping for 24/7 operation, and compatibility with all common implements such as winter equipment, mowers and loaders, it will probably be the most versatile tractor on the market,” Herbert Diess, founder of Diess E-Agrartechnik AG and former Volkswagen CEO, wrote on LinkedIn.
According to Diess, the electric tractor is expected to be fully competitive with comparable diesel models from the start of deliveries in 2027 while reducing operating costs by around 50%.
Few technical details have been disclosed so far, and the company has not yet launched an official website. Public registration documents for the business were also not immediately available.
Beyond electric tractors, Diess E-Agrartechnik plans to develop a broader ecosystem that includes battery-swapping stations, solar-powered charging infrastructure, electric agricultural implements and, in the longer term, autonomous farming equipment.
Diess said the company is collaborating with an established agricultural machinery manufacturer serving the DACH region, which includes Germany, Austria and Switzerland, as well as a network of experienced suppliers. The company is also recruiting a senior executive to establish its international sales organization, with agricultural industry experience listed among the key qualifications.
The venture marks Diess’ latest involvement in electric mobility since leaving Volkswagen. In addition to serving as chairman of the supervisory board of semiconductor manufacturer Infineon, he has been involved in promoting bidirectional charging technologies through The Mobility House.
The electric tractor project also builds on work initiated during Diess’ tenure at Volkswagen. Under the automaker’s GenFarm program, Volkswagen developed an electric tractor designed for agricultural use in Rwanda. The vehicle has been operating in the country since 2024, and Diess personally tested an early prototype near Wolfsburg in 2021.
The planned launch comes as agricultural equipment manufacturers increasingly explore electrification technologies as a way to reduce emissions, lower operating costs and support the transition to more sustainable farming practices.
