Volkswagen plans to invest 180 billion euros ($192.76 billion) over the next five years in areas including battery production and its North American operations, it said on Tuesday, with spending on combustion engines to fall from 2025.
As it works toward a target of 50% electric vehicle (EV) sales globally by 2030, over two-thirds of the five-year investment budget is allocated towards electrification and digitalisation, up from 56% in a five-year plan it had released a year earlier.
The car maker is expected to provide an update later on Tuesday on how it will improve operations at its software unit Cariad, which was set up under former Chief Executive Herbert Diess but has gone over budget and fallen behind on its goals.
The unit suffered an operating loss of 2.1 billion euros in 2022 on revenue of 800 million euros, according to the car maker’s annual report released on Tuesday.In the latest investment plan, 15 billion euros is ringfenced for battery plants and raw materials, with the company focusing first on securing the raw materials it needs and then on building new sites.
via Reuters
