Volkswagen invests 180 billion euros and accelerates on electric vehicles -

Volkswagen invests 180 billion euros and accelerates on electric vehicles -

Volkswagen focuses on electricity: the group, in fact, has announced an investment plan of 180 billion euros between 2023 and 2027 aimed at more attractive areas and sectors. More than two thirds, exactly 68% (while in the last five years the availability amounted to 56%) equal to 122 billion, will flow into the transition to electricity and technological innovation. In the profit pools, as explained in a note, the group's battery strategy will be included in particular, increasing its presence in the North America region, increasing competitiveness in digitalization and products in China, as well as continuing to develop the flagship product portfolio.

Acceleration on electric

According to Volkswagen projections, already in 2025 one in five vehicles sold worldwide will be electric. Therefore, in detail, the investment plan allocates up to 15 billion euros to the battery factory of the subsidiary PowerCo and to the upfront expense to find raw materials on schedule, with the forecast that by 2030 you will be able to generate an annual turnover of over 20 billion of Euro. However, iconic models such as the Golf and Tiguan will not be involved in the electrification programme. In fact, investments in the latest generation of combustion engines will continue, while those for electric ones will peak in 2025 and then gradually decrease.

Investments in North America

The acceleration of the Volkswagen group towards electric due to the intention to oppose the competition, starting with Tesla but keeping an eye on Chinese manufacturers such as Byd Auto. The American gigafactory of PowerCo, which will accompany the European production, will be based in St. Thomas in Ontario, Canada and expected to become fully operational by 2027. IThe group reiterated that this is not a flight but further proof of the ambitious growth strategy in North America. An overseas investment that adds up to the 2 billion dollar one for the Scout plant, the brand reborn and relaunched on the market by Volkswagen in 2022. The factory will be near Columbia, South Carolina, and will produce pick-ups. electric ups and suvs.

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