German car manufacturer Volkswagen AG announced plans to invest €180 billion in production over the next five years.
Approximately 70% of this sum will be allocated to the development of electric cars and software, according to the company's website. This marks a 13% increase in investment compared to previous plans, as reported by Bloomberg.
Volkswagen CEO Oliver Blume has stated that this year will be critical for achieving the company's strategic goals and accelerating overall development.
On Monday, March 13, Volkswagen also announced plans to build a battery factory in Canada - the first outside of Europe. This plant aligns with the German company's strategy to increase its presence in the North American market, which also includes the construction of a new electric car plant in South Carolina worth $2 billion.
The automaker is also investing in China, its largest market, in order to increase competitiveness with local models and stop the decline of market share, especially among electric vehicles.
Despite focusing on future technologies, Volkswagen's investments in traditional internal combustion engines will also increase. They will reach their peak only in 2025, when new strict Euro 7 emission standards come into effect in the European Union.