The group wants to invest billions in new models.
(Photo: IMAGO/Future Image)
Berlin Volkswagen is pushing ahead with the electrification of its fleet and intends to invest a total of 180 billion euros by 2027. Two thirds of this should flow into electrification and digitization, said Europe’s largest car company on Tuesday when the 2022 balance sheet was presented in Berlin. In view of a net liquidity of 43 billion euros, in which 16 billion from the IPO of the sports car subsidiary Porsche have flowed, the Wolfsburg-based company sees itself in a position to handle the investments that will be made in the current year. For the coming years, Volkswagen is counting on continued robust business with a high inflow of cash.
When it comes to investments, Volkswagen says it wants to concentrate on the most attractive profit pools. These include the battery strategy, the expansion of the presence in North America, the increase in competitiveness in China in the area of digitization and the products as well as the further development of the model range of the group.
68 percent of the investments flow into the future fields of digitization and electrification. In the past five-year plan, it was still 56 percent. By 2025, every fifth vehicle sold worldwide should have a purely electric drive. A major reason for the increase in total investment is the up to 15 billion euros for the construction of cell factories by the battery subsidiary PowerCo and advance payments for securing raw materials. By 2030, PowerCo is expected to achieve annual sales of more than 20 billion euros.
Added to this are ongoing investments in the latest generation of combustion engines. The peak of the investments should be reached in 2025, after which the expenses should decrease continuously.
“2023 will be a crucial year for implementing strategic goals and accelerating the progress of the group,” said CEO Oliver Blume, who is also the head of Porsche. Volkswagen surprised with an optimistic outlook at the beginning of March. Accordingly, sales should increase by ten to 15 percent in view of the high order backlog and the operating return should land in a range between 7.5 and 8.5 percent. In terms of net liquidity, the group is aiming for a value of between 35 and 40 billion euros.
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