Volkswagen to Invest Nearly $200 Bn for EV Production: Source

The popular automotive giant Volkswagen recently faced an $18.2 billion emissions scandal. Subsequently, Volkswagen placed its future on electric vehicles and announced plans to launch 30 new EVs. Now, the manufacturer has disclosed that it intends to spend $193 billion over the next five years on various aspects of its electrification efforts.

After revamping its Chattanooga, Tennessee factory in 2022, the business is now producing ID4 electric automobiles in the United States. Volkswagen’s electrification efforts lag behind those of its largest competitors, and the company aims to strengthen its position in North America and become more competitive in China. The corporation views these regions as its two most significant markets, which it must dominate to achieve its objectives. VW previously claimed that it wants electric vehicles to account for around 55 percent of its sales in the US by 2030.

According to a source, VW CEO Oliver Blume stated during a press conference that two-thirds of this expenditure will be allocated to the production of batteries, the development of software, and the procurement of necessary raw materials for the company’s vehicles.

Blume’s disclosure follows the automaker’s statements that its affiliate PowerCo will construct its first North American battery cell facility in Canada and that electric trucks and SUVs will be manufactured in South Carolina.

For now, the automaker will continue building gas vehicles as it’s working to expand its EV portfolio with more models, including inexpensive ones that cost under $26,000. But, Volkswagen’s chief finance and operations officer, Arno Antlitz, while discussing the company’s future said,

We must transition into a business that provides technology and mobility services. The focus must be placed on our platforms, including hardware for battery-powered electric vehicles, a uniform software stack, batteries, mobility, and autonomous driving.

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