VW is investing EUR 120 million in electrification & digitization

von Constantin Hoffmann an Jun 12, 2024

VW investiert 120 Mio. Euro in Elektrifizierung & Digitalisierung
The Volkswagen Group has confirmed that it will invest around 180 billion euros by 2028. Two thirds of this sum, around 120 billion euros, will flow into the development of new electric models and digital services. The rest, around 60 billion euros, will continue to be invested in the further development of internal combustion engines.

Volkswagen's CFO Arno Antlitz emphasized: "The future is electrical, but the past is not over yet." Although VW takes big steps towards electrification, a significant part of the budget is reserved for optimizing the combustion engines.

An important project during this period is the development of the new platform SSP (Scalable Systems Platform), which will in future bear many electric cars from the group. This platform should be able to replace the current MEB and PPE platforms and celebrate their debut 2028.

Despite these investments, VW continues to fight with challenges in the field of electromobility. The sales figures for electric vehicles are declining and the group faces increased competition from China. In order to counteract this, VW is investing in new partnerships and development centers in China.

The VW subsidiary Powerco, which is responsible for battery production, is also progressed more slowly than planned. Powerco was originally supposed to deliver battery cells for around three million electric cars by 2030. Nevertheless, VW remains optimistic that 70 percent of the group sales will be eliminated by then on electric cars.

Volkswagen continues to remain loyal to electrification, but also strategically invests in the optimization of combustion technology in order to remain competitive in a changing automotive market.