Volkswagen Group To Invest 60 Billion Euros In Future Mobility; EVs Get The Biggest Share

The German marque will be investing 60 Billion Euros between 2020 and 2024 which will be spent on hybridization, electric mobility and digitalization.

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The Volkswagen Group is planning to invest about 60 Billion Euros between 2020 and 2024.

Highlights

  • VW is planning to invest about 60 Billion Euros between 2020 and 2024.
  • The investment is allocated for hybridization, new EVs and digitalization
  • It will invest 33 Billion Euros on electric vehicles alone.

The Volkswagen Group has laid out plans for a period of four years and is planning to invest around 60 Billion Euros between 2020 and 2024. The German marque will be proceeding with the development of future mobility solutions which will include hybridization, electric mobility and digitalization in the next five years. Volkswagen has also shared that it will be spending 33 Billion Euros on electric mobility alone, giving it the biggest share of the scheduled investment. The allocated fund is over 40 per cent of its investments in property, plant, equipment and research & development during the planning period. The latest investment has seen around 10 per cent increase as compared to the group's last planning round.

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Speaking on the recent allocation Hans Dieter Potsch, Chairman of the Supervisory Board, Volkswagen Group said, "We are resolutely pressing ahead with the transformation of the Volkswagen Group and focusing our investments on the future of mobility. This is part of our systematic and consequent implementation of the Group's strategy."

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Speaking on similar lines, Herbert Diess, Chief Executive Officer of the Volkswagen Group said, "We will step up the pace again in the coming years with our investments. Hybridization, electrification and digitalization of our fleet are becoming an increasingly important area of focus. We intend to take advantage of economies of scale and achieve maximum synergies. In light of the worsening economic situation, we are also working on increasing our productivity, our efficiency and our cost base so as to secure meeting our targets."

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While planning the Round 68, the long-term plan for the next 10 years was also modified. The Group plans to introduce up to 75 all-electric models to the market along with about 60 hybrid vehicles by 2029. The number of projected e-vehicles will be increased to about 26 million with the addition of one more year in the planning period. Moreover, the Group is planning to sell about 6 million hybrid vehicles by 2029. About 20 million of the e-vehicles planned through 2029 will be based on the Group's Modular Electric Drive Matrix (MEB) platform. Most of the remaining 6 million vehicles will be based on the High Performance Platform (PPE).

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The Group will manufacture the electric vehicles outside Germany in Mlada Boleslav, Chattanooga, Foshan and Anting. Others will be produced by German plants in Zwickau, Emden, Hannover, Zuffenhausen and Dresden. It is also planning to the production of the electric A-SUV in 2022 at its upcoming plant in Emden. A camouflaged version of the ID.Next was already showcased this year at the Internationale Automobil-Ausstellung (IAA) or Frankfurt Motor Show as we better know it. The final plan for a multi-brand plant will be made by the end of the year. The company has also reaffirmed that the Chinese joint ventures (JV) are not included in the consolidated group, hence are excluded from the above plan.

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