The German brand Volkswagen has announced that it will invest 180 billion euros over the next five years to increase its production of electric vehicles. The manufacturer is looking to catch up with electric car giant Tesla and the Chinese, who have a large market. After weak results in the last quarter of 2022, Volkswagen has every intention of rebounding.
Volkswagen is speeding up in electric. The German automaker said Tuesday that it plans to invest 180 billion euros ($193 billion) over five years in battery production and raw material supply. The investment is part of a strategy adopted by many automakers to reduce the costs of electric vehicles and protect their market share
The company announced Tuesday that more than two-thirds of its five-year capital budget will be allocated to electrification and digitalization, with up to $15 billion spent on batteries and raw materials. However, after the collapse of Silicon Valley Bank, the markets are somewhat shaken up and CFO Arno Antlitz informed analysts that the company may delay some battery investments.
At the end of the five years, Antlitz hopes the company would then have secured enough raw material supply agreements and increased battery production to reduce electric vehicle expenses, 40 percent of which come from battery costs.
“We plan to reach 20 percent electromobility in new sales starting in 2025, and we are already investing two-thirds of our budget in this area”, he said.
Catching up with Tesla and the Chinese
Featured photo : © Volkswagen