Frankfurt: GERMAN AUTO Giant Volkswagen said on Thursday that it would accumulate his investment in electric vehicles and digitalization to 89 billion euros ($ 101 billion) for the next five years.
The 12-brand group will dedicate 56 percent of the 159 billion euros of investments to develop future cars, up from 50 percent, and estimate that “one in four cars sold in 2026 will have a battery electric motor”.
“We are in the midst of the biggest transformation in Volkswagen’s history,” CEO Herbert Died at a press conference after meeting the group supervisory board to approve an investment plan.
Under pressure to reduce the role of the sector in climate change, large car makers throughout the world have announced the target to gradually remove the fossil fuel-powered vehicle.
In 2020, Volkswagen announced 73 billion euros in investment in tomorrow’s vehicle for a period of up to 2024.
The need to increase the investment of up to 2025 was “mainly due to the increasing e-mobility ramp-up as part of a green agreement” approved by the European Union, the group said in A statement.
Increased investment will also enter the opening of six new battery factories in partnership with other companies.
Electric car investment increased by 50 percent to 52 billion euros, while the amounts allocated for hybrid “transitional technology” fell 30 percent to eight euros.
Digitizing the vehicle and group organizations will cost 30 billion euros further.
Volkswagen said that its flagship factory in Wolfsburg, Germany, will start producing electric vehicles earlier than the first planned in 2024, above the plan to produce new mass market electric vehicles from 2026.
The group also announced a reshuffle on the board of directors with Diess Transfer the search group software and VW brand BOSS Ralf Brandstaetter assuming responsibility for the Chinese market next year.