Volkswagen to invest EUR180B over 5 years in ‘attractive’ profit pools

Volkswagen said in a statement that it is planning to invest EUR 180 billion between 2023 – 2027 "in the most attractive profit pools, including in particular the Group’s battery strategy, growing its presence in the North America region, increasing the competitiveness in digitalization and products in China, as well as continuing to develop the Group’s leading product portfolio. More than two-thirds of the investment will flow into the future fields of digitization and electrification. In the last five-year plan, the figure was 56 percent. As early as 2025, every fifth vehicle sold worldwide is expected be one with an all-electric drive. A major reason for the investment increase is the up to EUR 15billion ringfenced for the construction of cell factories by the battery start-up PowerCo and upfront expenditures for securing raw materials as part of the implementation of the battery strategy. By 2030, PowerCo is expected to generate annual sales of more than EUR 20 billion. Additionally, there will be ongoing investments in the last generation of combustion engines. The peak in investment is expected to be reached in 2025, after which it will continuously decline."