Volkswagen Group, which owns several brands such as Volkswagen, Audi, Porsche, Bentley, and Lamborghini, announced it plans on spending a massive $193 billion until 2027 to make its EV products better and more reliable, as well as expanding in markets such as North America and China.
Compared to its last annual update, the Volkswagen Group will increase spending by 13 percent, with the biggest lump of the investment – 68 percent – going towards EVs and software development, and with the group expecting every fifth vehicle sold worldwide to have an all-electric powertrain by 2025.
As a quick reminder, VW had a troubled start to its EV software development, with the group going as far as removing its previous chairman, Herbert Diess, from his position because of the constant delays and mishaps that forced Porsche, Audi, and Bentley to push back the introduction of new products, such as the next-generation Macan EV and Audi's Artemis Project.
The Cariad software unit has gone over budget and suffered an operating loss of $2.1 billion last year, but VW now says it is in the final stages of development for high-performance software intended for its premium and luxury brands which could then be applied across the company, including to entry-level brands in the medium-term.
"We have set clear and ambitious targets and took necessary decisions to streamline processes," current CEO Oliver Blume said during the automaker's annual press conference on Tuesday. This year "will be a decisive year for executing strategic goals and accelerating progress across the group," Blume added.
Earlier this week, Volkswagen announced it is going to build an electric vehicle battery plant in Canada, its first outside Europe, and plans on investing $2 billion in a new factory in North Carolina where the new Scout models will be assembled.
VW is also investing in China, its biggest market, in a bid to have a bigger impact on local models and stop a slide in market share, especially on the EV front.
Last year, the Volkswagen Group delivered 572,100 EVs worldwide and saw profit increases across the board, with Porsche managing an impressive profit margin of 18.6 percent, which is bound to be even bigger in the following years, as the luxury car brand plans on significantly increasing its prices this year.
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