Volkswagen to Spend $100 Billion on Future Technology Over Next Five Years -- Update
09 Décembre 2021 - 5:59PM
Dow Jones News
By Kim Richters
Volkswagen AG said Thursday that it will spend 89 billion euros
($100.96 billion) over the next five years on future technologies
such as electric mobility and digitization.
As part of its yearly budget update, the German car maker said
the investment in such technologies would amount to 56% of the
total capital expenditure-plan for the period, which stands at
EUR159 billion.
The company said it will reduce spending on hybridization and
pledged EUR52 billion to accelerate the ramp-up of battery-electric
vehicles. "The resolutions passed today show how resolutely we are
driving forward the transformation of the Volkswagen Group," said
supervisory board chairman Hans Dieter Poetsch. "Our investments
will be focused on the future of mobility in all its key aspects
and on systematically implementing the Group's strategy."
The German company updates its five-year investment plans each
year. Last year, it pledged to spend about EUR73 billion on the
development of electric vehicles and other new technologies.
"The additional investment requirement is mainly due to the
accelerated ramp-up of e-mobility as part of the Green Deal, as
well as the establishment of [our] own battery gigafactories and
vertical integration in the battery value chain," said
Volkswagen.
The investments were approved alongside a reshuffle of the auto
maker's management board that stripped Chief Executive Herbert
Diess of some responsibilities after clashes with labor
representatives.
Also on Thursday, Volkswagen confirmed that its operating margin
should reach the upper end of the target range of 6%-7.5% and
deliveries should be around 9 million vehicles in 2021. For
2025-26, the auto maker backed its target of an operating return on
sales in the range of 8%-9%.
At 1607 GMT, preference shares in Volkswagen were 1.1% lower at
EUR182.38
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
December 09, 2021 11:44 ET (16:44 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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