VW injects big capital into EVS

VOLKSWAGEN has raised its planned investment on digital and electric vehicle technologies to € 73 billion ( R1.3 trillion) over the next five years as it seeks to hold on to its crown as the world’s largest carmaker in a new green era.

The vehicle giant said it would allocate nearly half its investment budget of € 150bn ( R2.74 trillion) on e- mobility, hybrid cars, a seamless, software- based vehicle operating system and self- driving technologies.

Last year the German car and truck maker, which owns VW, Audi, Porsche, Seat and Skoda, earmarked € 60bn for electric and self- driving vehicles out of its € 150bn budget.

A global clampdown on emissions, partly triggered by VW’S diesel pollution scandal in 2015, has forced carmakers to accelerate the development of low- emission technology, even for their low- margin mainstream models.

Jefferies analyst Philippe Houchois said while the overall investment budget was unchanged, VW’S priorities had seen a “meaningful re- allocation to software and digitisation and a continued priority on Germany”.

Volkswagen has said the EU’S more stringent emissions targets will force it to boost the proportion of hybrid and electric vehicles in its European car sales to 60% by 2030, up from a previous target of 40%. | DRIVE360