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March 14, 2023
12:19 p.m
Volkswagen announced on Tuesday that it would invest 180 billion euros ($192.76 billion) over the next five years in areas including battery cell production and digitization in China and expand its presence in North America.
Two-thirds of the five-year investment budget was allocated to electrification and digitization, up from 56% in the previous five-year plan, of which €15 billion was allocated to battery factories and raw materials.
The automaker said investment in combustion engine technology will peak in 2025 and then taper off as it works towards a target of 50% of global electric sales by 2030.
Stock raising
Earlier this month, the automaker boosted the stock with an upbeat outlook for the coming year, forecasting a 10-15% rise in revenue with 14% deliveries, despite ongoing supply chain challenges.
Its profit margin was at the high end of its 2022 forecast at 8.1%, while sales and profits exceeded 2021 levels, despite supply chain disruptions that pushed net cash flow below target.
“Volkswagen” announced on Monday that “the first battery cell factory outside of Europe will be in Canada, and production will start from 2027.” Thomas Schmoll, a member of the board of directors, said the company was in no rush to decide on the location of its next European plant until it knew what Europe had to offer.
(Reuters)
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