BERLIN (Reuters) – Volkswagen will invest 180 billion euros over the next five years in areas including battery cell production, digitalization in China and expanding its presence in North America, the government said. automaker on Tuesday.
More than two-thirds of the five-year investment budget is allocated to electrification and digitization, compared to 56% in the previous five-year plan, including 15 billion euros earmarked for battery factories and raw materials.
Investment in combustion engine technology will peak in 2025 and decline from then, the automaker said, as it strives to hit its target of 50% sales of all-electric vehicles in the world by 2030.
Earlier this month, Volkswagen stock soared following the announcement of an optimistic outlook for the year ahead, with the automaker forecasting a 10-15% rise in sales thanks to an increase 14% of its deliveries.
Profit margin came in at the upper end of 2022 guidance at 8.1%, with sales and earnings above 2021 levels, despite supply chain turbulence that caused its flow to plummet. net cash well below target.
On Monday, Volkswagen announced that its first battery cell plant outside Europe would be located in Canada and production would start from 2027.
(Report Victoria Waldersee, Augustin Turpin, edited by Tangi Salaün)
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