Volkswagen has announced that it plans to spend $193 billion on different areas of its electrification efforts over the next five years.
German automotive giant Volkswagen has announced that it plans to spend $193 billion in different areas of its electrification efforts over the next five years. According to the information revealed, Volkswagen CEO Oliver Blume said at a press conference that two-thirds of this budget will go towards battery production, software development and the supply of critical and raw materials for its vehicles.
Blume’s disclosure comes after the automaker’s subsidiary, PowerCo, announced that it will build the first North American battery cell factory in Canada and produce electric pickup trucks and SUVs in South Carolina. After the company redesigned the ID.4 model, it started producing it in the USA. But Volkswagen’s electrification is lagging behind its biggest rivals and aims to become more competitive in China, as well as building a stronger foothold in North America.
The company sees these regions as the two most important markets it must conquer if it wants to achieve its goals. Volkswagen has previously said it wants electric vehicles to make up about 55% of its sales in the US by 2030.
The company’s long-term plans include launching 30 new electric vehicles. For now, the automaker will continue to produce vehicles with internal combustion engines as it works to expand its electric vehicle offerings with more models, including affordable models that cost around $26,000. Arno Antlitz, Volkswagen’s chief financial and operating officer, said of the company’s path forward: “We must transform ourselves into a technology and mobility services group. We should focus on electric vehicles, special software developed, batteries, mobility, autonomous driving.”
Source: Egirisim / Prepared by Irem Yildiz