Volkswagen will invest more than 34 billion euros into electric mobility, autonomous driving and digitalization by 2022. Most of this amount will go into electrifying and hybridizing all 300 VW models.
On Friday, the Volkswagen board approved an investment of more than 34 billion euros into electric mobility.
As Matthias Müeller, CEO of Volkswagen, said: “With the planning round now approved, we are laying the foundation for making Volkswagen the world’s number one player in electric mobility by 2025.”
Most of the money will go towards electrifiying or hybridizing each of its 300 models. As part of the company’s Roadmap E initiative announced in September, Volkswagen aims to electrify its entire model portfolio by 2030.
The German carmaker has already invited tenders for one of the largest purchasing volumes ever, with plans to spend over 50 billion euros on battery cells.
“We are reinventing the car,” Müller added. Targeted investments will be made in electric mobility, autonomous driving, digitalization and new mobility services.
More than 1 billion euros will go towards the Zwickau plant in the east of Germany to remodel it into a pure-play e-mobility plant. In the first stage, Volkswagen will concentrate on series production of its future electric vehicles based on the new modular electric drive kit (MEB) here. According to Volkswagen, the MEB will allow it to offer electric vehicles with operating ranges from 400 to 600 kilometres and rapid charging capabilities.
According to CFO Frank Witter, the ambitious CO2 targets are presenting major challenges to carmakers around the world.
“This is why we have to complete the transformation toward producing more electrically powered vehicles – combined with digitalization, connectivity and mobility services – with utmost efficiency.”