The Volkswagen Group will invest more than £30billion in developing future technology including electric cars and autonomous driving systems in the next five years – with the firm’s boss claiming it is “reinventing the car.”
The investment in electric mobility, autonomous systems, new mobility services and digitisation was agreed in the VW Group Supervisory Board’s planning round for 2018 until 2022. The bulk of the £30bn will go towards autonomous tech and the electrification of the Group’s entire model line-up, an initiative announced at the Frankfurt motor show in September.
“We are laying the foundations for making Volkswagen the world’s number one player in electric mobility by 2025,” said VW Group CEO Matthias Muller. “We are reinventing the car.“We are making targeted investments in digitalisation, autonomous driving, electric mobility and new mobility services by providing the necessary funds from our own resources.”
The VW Group has pledged to electrify its entire model range – with at least one electric variant of every car – by 2030. To achieve that, the firm expects to spend more than £44.6bn on battery cells.
In the next five years, the firm will also alter its production network. Those moves will include the Volkswagen plant at Zwickau in Germany being converted into a pure e-mobility facility, building the European series of full-electric vehicles on the firm’s MEB electric platform.
Notably, the £30bn investment plan does not include the Chinese market - which the Group cites alongside Brazil, Russia and North America as key to its future growth plans. Volkswagen has a number of joint ventures in China, and investment funding is considered separately.