Berlin – In addition to its North American operations, Volkswagen (VOWG p.DE) announced on Tuesday that it aims to spend 180 billion euros ($192.76 billion) within the next five years in sectors including battery manufacture. Starting in 2025, spending on internal combustion engines will fall. VW will invest $193 billion over the course of five years to fulfill the EV objective.
Around two-thirds of the five-year investment budget, up from 56% in a five-year plan it had issued a year earlier, is earmarked towards electrification and digitalization as it pushes forward towards a goal of 50% electric vehicle (EV) global sales by 2030.
In the most recent plan, 2 billion euros are designated for a plant in North Carolina for its Scout brand, while 15 billion euros are ringfenced for battery plants as well as raw materials.
According to the manufacturer, which has more aggressive electrification ambitions than other competitors, expenditure in combustible engine technology will reach its high in 2025 and then begin to drop.
The spending choices are meant to accomplish a 10-point strategy that C.E.O Oliver Blume created after taking over the manufacturer in September.
Volkswagen is also anticipated to announce the outcomes of an exercise Blume initiated called a “virtual equity tale” later on Tuesday. In order to become more appealing to financial markets, the firm’s brands, which range from Audi to Bentley, were all required to get ready for listing as a part of efforts to become more appealing to capital markets
PowerCo, a battery company, is the most likely candidate for the stock market.
In spite of supply chain issues, the automaker predicted a 10% to 15% rise in earnings on 14% higher shipments this year, which sent shares flying this month.
Sales and earnings for Volkswagen exceeded those of 2021 despite supply chain problems that caused its net cash flow to fall significantly short of the target. Volkswagen’s revenue gap in 2022 was at the higher end of its 8.1% prediction.
VW stated on Monday that it would build its first battery cell factory outside of Europe in Canada, with manufacturing set to begin in 2027. According to board member Thomas Schmall, it wasn’t in a rush to choose the location of its second European facility until it understood what incentives Europe will provide.