Frankfurt, Germany: Over the next five years, carmaker Volkswagen Group plans to invest more than 34 billion euros (US$40.31 billion) in order to develop electric and hybrid cars, as well as self-driving cars, new mobility services such as car-sharing, and digitalisation.
In a meeting of the group’s supervisory board, chief executive officer Matthias Mueller said that they are “reinventing the car”. The group, which owns 12 brands including Audi, Porsche and Skoda, announced in September 2017 that it planned to electrify its entire fleet by 2030—this will see electric or hybrid versions of some 300 models.
The group recently signed off on an overall five-year spending plan totalling “more than 70 billion euros (US$83 billion),” according to a spokesperson. That is slightly lower than the 2015-2019 investments announced in 2014, when the group pledged to spend nearly 86 billion euros ($101.41 billion).
This focus on the cleaner, smarter vehicles of the future mirrors other traditional carmakers, and is especially important for Volkswagen as it seeks to shake off its global emissions debacle in 2018, which has cost 25 billion euros (US$29.64 billion) in fines, recalls and compensation.