ALEXANDRIA, Va.—Volkswagen will invest about $25 billion a year in vehicle electrification and digitization between 2023 and 2027, the company announced.
“We have set clear and ambitious targets and took necessary decisions to streamline processes in . 2023 will be a decisive year for executing strategic goals and accelerating progress,” said CEO Oliver Blume.
“Blume took over from former CEO Herbert Diess in July 2022, leading some to wonder if VW would be slowing spending on EVs as Diess was a believer in EV technology. That doesn’t appear to be the case now,” Barron’s reports.
Volkswagen is currently the fourth-largest seller of EVs. It sold about 572,000 all-electric vehicles around the globe in 2022, up about 26% compared with 2021. Tesla sold 1.3 million EVs in 2022, while China’s BYD and SAIC combined to sell about 1.6 million EVs. With its new investments, VW is targeting consumers in China and the United States.
The Wall Street Journal reports that “After several failed attempts to boost VW’s market share in the U.S., Mr. Blume is building on his predecessor’s strategy of stepping up investment in EV development.” A key factor is the Biden Administration’s Inflation Reduction Act, which “unleashed more than $300 billion in government spending aimed at encouraging so-called clean-tech investments, and has sparked a race between the U.S., Europe and other economies to attract green corporate investments.”
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