Friday , May 20 2022

Volkswagen companies will invest $ 50 billion in the development of electric cars


The German Volkswagen Group has announced its intention to become the most profitable automaker in the coming decade. To do this, the company will invest a total of $ 50 billion in 2023 through the development of new models of electric cars, autonomous vehicles and other services. Volkswagen will also deepen its collaboration with the American giant Ford. The intention of the company was announced by CEO Herbert Dies at a conference in Volfsburg, the birthday of Volkswagen. At the end of the week, the supervisory board of the giant adopted a five-year investment strategy.

Dies also said he hopes to build a new deal with Ford by the end of this year, with a major focus on mass-market cars. He added that the deal does not provide for a merger with the US company and that Volkswagen has no plans to buy a share in it.

Cheap electric cars

The main problem of electric cars at this moment towards Volkswagen is their relatively inaccessible price. Mass production, however, will allow the giant to reduce the cost of an electric car to one by one diesel. "With the greatest possible proportions, I think we will become the most profitable coincidence in the world, "said Die.

The board of directors of the company has already voted for higher costs for launching mass production of Volkswagen cars in Europe. The plan is the most radical change for the company since the start of the diesel scandal in 2015. It includes an upgrade of three factories in Germany, as well as a review of new contracts with companies that produce car batteries.

In total, Volkswagen plans to increase the productivity of its plant by 30 percent by 2025. This will happen by starting production of cars from different brands under his cap on the same production lines. "Volkswagen needs to become more efficient, more productive and profitable to remain competitive in the future," Die said.

The company will build a factory in Eastern Europe but has not yet chosen the country
The leadership of the German group decided to build a new factory in Eastern Europe, but it is not yet determined where the country will be. The production of some Škoda and Seat models will move there (probably Škoda Karok and Seat Ateca). The Škoda factory in Kassinny, near the border with Poland, will take over the production of Volksvagen Passat from 2023, said several news agencies after the supervisory board late last week, who set the development strategy for the next 5 years.
A week ago, the Business Journal of Handelsblatt reported on the upcoming change in production, highlighting potential countries for a new factory, Bulgaria and Turkey. The decision should mean that the place where the enterprise is being built in Eastern Europe should be relatively fast, so that it can be built up in time to transfer production from Kusassini.

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