Volkswagen will invest Rs 2,44,440 crore in electric vehicles segment and in improving the overall production efficiency of the automaker
(Image Courtesy – volkswagenag.com)
Volkswagen Group CEO Herbert Diess has confirmed that the company has inked partnership with Ford to develop electric and commercial vehicles for the global market. He has also announced the company’s investment plans in the electric vehicles segment and autonomous technology.
Investments
Volkswagen has carved out a 5-year investment strategy of around Rs 2,77, 032 crore to Rs 358,512 crore on EV and autonomous technology. It will also focus on engine development and infrastructure, besides spending about Rs 2,44,440 crore on electric vehicles (EVs). The plan includes investments in improving production efficiency by 2025.
Bernd Osterloh, Council Head, Volkswagen Works, also shared that the company wants to be a part of battery manufacturing close to where the cars are produced. However, he said that the brand would continue looking at internal combustion engines.
Meanwhile, the German automaker dismissed the rumours about a full-merger or equity swap discussion with Ford. Volkswagen has been planning to manufacture around 50 million electric vehicles in the coming years. It has also signed a few agreements to source out batteries for the EVs.
In 2017, the Volkswagen Group sold around 10.7 million vehicles. It is investing heavily in electric vehicles segment as it tries to rebuild its status after the scandal of rigged emissions tests of diesel engines in the US that cost the company billions of dollars in fines and refits.
