Volkswagen's new investment plan for the next five years (through 2022) details a huge spending spree on electrification, in parallel to further improvements of combustion engines.

Volkswagen Golf GTE Atlantic Blue

Volkswagen Golf GTE Atlantic Blue

While also improving efficiency of ICE cars by 10 to 15%, Volkswagen intends to invest about €9 billion ($10 billion) into electric drive technology (HEVs, PHEVs, BEVs),

€9 billion is about three times the amount already spent over the previous five year period.

VW's Chief Executive Matthias Mueller said:

"Even though modern combustion engines will be relevant for at least another 20 years, it is clear that the future will be ruled by electric drives," Mueller said, citing a need to respond to "epochal changes" in industry.

"What's at stake is to develop a future-proof drives portfolio as a basis for transforming the core autos business," Mueller told an auto industry conference in Vienna.

Searching to cut costs in all areas, Volkswagen will reduce the variety of its conventional engines by some 40% by 2020.

source: Reuters