Volkswagen Plans $193 Billion Commitment to Electric Vehicles

The German automaker is planning a significant expansion into the North American market.

By Steve Huff

Josh Lefkowitz | Getty Images

Volkswagen recently announced plans to invest $193 billion to make every fifth vehicle it sells electric by 2025. More than two-thirds of the money will go toward software, battery factories, and other investments.

At a Tuesday media event, the New York Times reports that Arno Antlitz, CFO of the Volkswagen Group, said the company must transform "into a technology and mobility services group."

"We need to focus on our platforms," Antlitz said, "such as our hardware for battery-powered electric vehicles, a unified software stack, batteries, mobility, autonomous driving." He also said that his company's strong financials would help it to "continue investing in electrification and digitalization" despite the current "challenging economic environment."

CNBC reported a 68% spike in China propelled Volkswagen's move toward EV expansion, aided by the company's completion of a landmark plant in Tennessee.

Delivery numbers for Volkswagen did decline overall by 7% in 2022, then current CEO Oliver Blume took over from Herbert Diess—who aggressively pushed the company to embrace electric cars—in September last year. Blume said at the Tuesday presser that 2023 would be a decisive year for Volkswagen.

Thanks to a rise in energy prices and COVID-19-disrupted supply chains beginning to self-correct, Volkswagen did report a net profit of $16.7 billion in 2022—a 2.6 percent increase from the previous year.

Volkswagen indicated Tuesday that it will continue investing in China, forging partnerships with local companies there. In addition, the automaker plans to become a more significant North American player. Such moves could help it catch up to leading US automakers like General Motors, Ford, Toyota, and Hyundai.

Steve Huff

Entrepreneur Staff

Related Topics

Editor's Pick

Everyone Wants to Get Close to Their Favorite Artist. Here's the Technology Making It a Reality — But Better.
The Highest-Paid, Highest-Profile People in Every Field Know This Communication Strategy
After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.
Having Trouble Speaking Up in Meetings? Try This Strategy.
He Names Brands for Amazon, Meta and Forever 21, and Says This Is the Big Blank Space in the Naming Game

6 Secret Tools for Flying First Class (Without Paying Full Price)

It's time to reimagine upgrading. Here's how to fly first class on every flight, business or personal.

Business News

These Are the Most and Least Affordable Places to Retire in The U.S.

The Northeast and West Coast are the least affordable, while areas in the Mountain State region tend to be ideal for retirees on a budget.

Business News

TikTok Influencer Reveals She Makes $350,000 a Month on OnlyFans. 'Absolutely Unreal.'

When Tara Lynn promoted her OnlyFans page on TikTok, she saw her income more than double.


Why It's Important to Incorporate Twitter Into Your Business's Marketing Plan

How businesses are using Twitter to market their brand in unconventional ways.