Volkswagen plans to increase its spending for battery-powered electric vehicles by about 50 per cent to €52 billion by 2026 as part of the carmaker’s far-reaching transformation.
The investment is key to the German group’s new revolving five-year spending plan, which foresees total investments of €159 billion in the 2022-26 period, compared with €150 billion for 2021-25.
Herbert Diess, 63, its chief executive, will stay on with rejigged responsibilities, the company said yesterday, ending weeks of uncertainty about his future amid conflict with unions, as the group increased spending plans on electric cars.
“We are becoming a battery manufacturer, a charging infrastructure manager, software is playing a more dominant role . . . We are developing new business activities with an unbelievable dimension for us,” Diess said.
He added that Volkswagen expected to generate €20 billion of revenue by 2030 from its battery division alone, which is being readied for a partial sale or listing.
Advertisement
Ralf Brandstätter, who took over from Diess as head of the core Volkswagen brand last year, will join the board and will lead a new division entitled Volkswagen Passenger Cars from January 1, the company said.
