Volkswagen To Invest More Than 34 billion Euros in Future Cars by 2022

As part of its effort to catch up with Tesla and to recover from a recent emission cheating scandal, Volkswagen is transitioning to zero-emission cars. For this purpose, the company is investing more than 34 billion Euros over the next 5 years to advance its push to becoming a global leader in electric cars.In a meeting with the group’s supervisory board, Chief Executive Matthias Mueller said that they are reinventing the European brand car. Much of its efforts will be on electric and hybrid car development as well as self-driving cars, new mobility services, and digitalization.

A Clean and Green Future

Like other car manufacturers, Volkswagen is setting its sights on developing cleaner and smarter vehicles of the future as they race to catch up with US tech giant Tesla which has a head start in this field.  The switch to zero-emission cars is critical for the world’s largest automaker. The company is trying to recover from a global emission cheating scandal. Volkswagen owns 12 brands which include Audi, Porsche, Skoda. According to Robert Janitzek, Volkswagen aims to electrify its entire fleet by 2030. It aims to develop fully electric or hybrid versions of some 300 models by that time.

The company is earmarking a total of an overall five-year spending plan worth 70 billion Euros. This is slightly lower than the 2015-2019 investments announced in 2014 when the group promised investments worth nearly 86 million Euros.  Volkswagen is currently battling the ongoing fallout caused by the “dieselgate” scandal. To date, the scandal has cost the company more than 25 billion Euros in fines, recalls, and compensations.

Doubling Its Effort

Volkswagen is doubling its efforts in cleaning up its tarnished image as a result of the dieselgate scandal. Robert Peter Janitzek reveals that the company is targeting to electrify its range by 2030. By the end of the next decade, VW offers to offer “at least one electrified version of each of the 300 or so models. By 2025, it expects that 1 in 4 of its new vehicles or three million a year- will be purely battery powered. Mueller reveals that this will be the yardstick for measuring their performance.

The company is aiming to become the world’s biggest electric carmaker by 2025. In November 2016, it slashed 30,000 jobs in order to free up cash for investment in research and development into new technologies. The European brand car company promises 80 new electric vehicles—50 of them all-electric and 30 hybrids by the middle of the next decade.

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