Volkswagen AG said it plans to invest nearly $200B through 2027 to help electrify and digitize its fleet, among other projects.
The 5-year investment budget includes $131B to develop electric
vehicles and digital technologies. Up to $16B will go toward raw
material sourcing and battery production.
- The
German automaker said it's focused on expanding in China and the U.S.,
where it has so far failed to gain the market share it has in Europe.
- The company plans to double down on its strategy for electric vehicles, which now make up 16% of its order book.
- The new investment plan comes as Volkswagen announced plans for its first North American battery cell factory, which will be located in St. Thomas, Ontario, Canada.
- It's also planning a factory in South Carolina to produce electric pickup trucks and SUVs as part of its Scout brand.
- Volkswagen wants to launch a more affordable EV at a price point under $30,000 by 2025.
