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German automaker Volkswagen AG VWAGY is planning to invest 180 billion euros — about $193 billion — between 2023 and 2027.
What Happened: Volkwagen said in a statement on Tuesday that the group is planning to invest 180 billion euros till 2027, with over two-thirds of the budget set for electrification and digitization.
The company is planning to invest particularly in battery strategy, growing its presence in the North American region, increasing competitiveness in China and ramping up product portfolio.
With these investments, Volkswagen, the leading carmaker in Europe, is aiming to close the gap with electric vehicle giant Tesla Inc. TSLA and increase its share in the battery-powered car market, reported Reuters.
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“We set clear and ambitious targets and took necessary decisions to streamline processes in FY22. FY23 will be a decisive year for executing strategic goals and accelerating progress across the Group,” Volkswagen Group CEO Oliver Blume said in the statement.
Over 68% of the planned investment is allotted towards digitization and electrification, as opposed to the 56% in the last five-year plan. Up to 15 billion euros has been ringfenced for the construction of cell factories by battery start-up PowerCo. PowerCo is expected to generate annual sales of more than 20 billion euros by 2030, the company said.
Battery-powered electric vehicle deliveries rose 26% in 2022. With the launch of the new ID.3, ID.7, ID. Buzz Long Wheel Base, CUPRA Tavascan and Audi Q8 e-tronmodels, the group aims to reach a battery-powered EV share of around 10% of total deliveries in FY 2023. In the U.S., BEV deliveries for the year were up 18.8% to 44,200 units, with the group ranking fourth overall in the all-electric segment, the company said.
Earlier this week, Volkswagen said its first overseas gigafactory for cell manufacturing will be established in St. Thomas, Ontario.
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Read Next: Volkswagen Said To Slash ID.3 Prices To Take On Tesla Model Y
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Image and article originally from www.benzinga.com. Read the original article here.