Shulou(Shulou.com)11/24 Report--

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com, March 14 (Xinhua)-- Volkswagen announced on Tuesday that it will invest 180 billion euros (CTOnews.com Note: currently about 1.32 trillion yuan) in battery production, digital software in the Chinese market and expanding its business in North America over the next five years.

Nearly 70 per cent of the five-year investment budget is spent on electrification and digital software, up from 56 per cent in the previous five-year plan, of which 15 billion euros (currently about 110.25 billion yuan) are spent on battery factories and raw materials, the announcement said.

Volkswagen also said investment in internal combustion engine technology would peak in 2025 and then begin to decline, as it strives to meet its goal of accounting for 50 per cent of global pure electric vehicle sales by 2030.

Volkswagen's share price soared earlier this month, and despite continuing challenges in its supply chain, Volkswagen is optimistic about the outlook for the coming year, forecasting a 10-15 per cent increase in revenue and a 14 per cent increase in delivery.

Although supply chain turmoil has dragged its net cash flow well below its target, its profit margin is still at the upper limit of its 2022 forecast of 8.1 per cent, with sales and earnings above 2021 levels.

On Monday, Volkswagen also announced that its first battery plant outside Europe would be based in Canada and would start production in 2027. Thomas Schmall, a member of Volkswagen's board, said Volkswagen was in no hurry to decide on the location of its next European plant before learning about European incentives.

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