Volkswagen Group is investing €180 billion, including in electrification

Over the next five years, the Volkswagen Group will be pumping no less than €180 billion into, among other things, the development of electric cars and software. The group will announce this during the presentation of its financial results for 2022. 68 percent of the €180 billion is intended for what Volkswagen calls ‘digitization and electrification’. A significant portion is also earmarked for expanding its activities in North America. In 2026 launches Volkswagen’s new Scout brand there are sales adventure. Scout cars will be built in the US state of South Carolina. Every year more than 200,000 cars have to leave the Scout factory. In addition, Volkswagen wants to improve its competitive position in China and, of course, the brand wants to expand its model portfolio.

Volkswagen aims for around 20 percent of all new passenger cars sold worldwide to have a fully electric powertrain by 2025. That is why Volkswagen is investing €15 billion in setting up fan factories where it will produce battery cells in collaboration with PowerCo. In Ontario, Canada, a so-called gigafactory.

The development of combustion engines is also receiving attention. In fact, they will only increase up to and including 2025, after which there will gradually be less investment in the development of combustion engines.

Volkswagen indicates that it continues its EV offensive and that this year “[…] important new electric models”. The Volkswagen ID3 has recently been facelifted and we already know that Volkswagen will introduce the ID7 and a longer version of the ID Buzz this year. Cupra will launch the Tavascan this year. According to Oliver Blume – CEO of the Volkswagen Group – 7 percent of all cars delivered by the group were EVs in 2022. However, with 8.3 million cars delivered, 7 percent fewer new cars were delivered in 2022 than in 2021.