Volkswagen AG has announced a €33 billion ($37 billion) investment plan that focuses on software, electric vehicles (EVs), and battery electric vehicles (BEVs).
The German automaker’s investment plan is a significant pivot towards digitalization, sustainability, and electric mobility as the company seeks to remain competitive in the rapidly changing global automotive industry.
The plan includes significant investments in software and digitalization, including €16 billion ($18 billion) to be spent by 2024 on software and digitalization initiatives across the group. This includes developing new mobility services such as car-sharing and ride-hailing, as well as investing in digital systems that will enable the company to develop and deploy automated and connected vehicle systems.
In addition, Volkswagen has committed to investing €11 billion ($12 billion) in EVs and BEVs, as well as an additional €6 billion ($7 billion) for the development of a new dedicated EV architecture, which is expected to be used for future electric vehicles from the company’s various brands.
The company also plans to invest in expanding its production capacity for EVs and BEVs, and €4 billion ($4.5 billion) will be allocated for battery cell production and other related components.
In a statement, VW Group CEO Herbert Diess said, “We are transforming Volkswagen into a global player in software and services. At the same time, we are creating the basis for an entirely new generation of electric vehicles. This will make Volkswagen a leader in the age of digitalization, sustainability, and electric mobility.”
The company’s plans are part of an ongoing effort to shift away from diesel and gasoline-powered vehicles, and towards a more sustainable future where EVs and BEVs are the norm. The investment plan is expected to help the company achieve its goal of selling one million EVs and BEVs by 2025, and to become a leader in the global EV market.