Volkswagen (VOWG_p.DE) plans to invest 180 billion euros ($193 billion) over the next five years in areas including battery production and its North American operations, it said on Tuesday, though the pace of spending will fall from 2025.
The investments come as Volkswagen, Europe’s top carmaker, tries to close a gap with electric vehicle (EV) pioneer Tesla (TSLA.O) by expanding its slice of the growing market for battery-powered cars.
As it works toward a target of EVs accounting for 50% of its sales globally by 2030, over two-thirds of the five-year investment budget is allocated towards electrification and digitalisation, up from 56% in a five-year plan it had released a year earlier.
The difference from the previous plan is primarily down to more investment in its battery business, raw materials, and a $2 billion plant for the Scout brand, Chief Financial Officer Arno Antlitz said.
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