Volkswagen Plans To Invest EUR 180 Bln By 2027

German auto giant Volkswagen (VKW.L,VLKAF.PK,VOW.BE) Tuesday said it plans to invest 180 billion euros between 2023 - 2027 in its most attractive profit pools and regions. In this, more than two-thirds will be allotted for electrification and digitalization.

The company said its solid financial performance in fiscal 2022 lays basis for profitable growth in key markets.

Volkswagen remains well-positioned for future growth although overall delivery numbers declined 7 percent to 8.3 million vehicles in 2022. Battery Electric Vehicles or BEV deliveries rose 26 percent in 2022, with further significant models to be released in 2023.

The company increased China BEV deliveries by 68 percent in 2022, with strong demand for its highly competitive, unrivalled e-model range. Overall, BEV deliveries in US were up 18.8 percent to 44,200 units.

With a high order book of 1.8 million vehicles, the company expects supply chain bottlenecks to gradually ease in 2023.

Oliver Blume, Volkswagen Group's CEO, "We have set clear and ambitious targets and took necessary decisions to streamline processes in FY22. FY23 will be a decisive year for executing strategic goals and accelerating progress across the Group.""

Regarding its planned investment of 180 billion euros, the company noted that a major reason for the investment increase is the up to 15?billion euros ringfenced for the construction of cell factories by the battery start-up PowerCo and upfront expenditures for securing raw materials as part of the implementation of the battery strategy.

By 2030, PowerCo is expected to generate annual sales of more than 20 billion euros. Additionally, there will be ongoing investments in the last generation of combustion engines.

The company projects the peak in investment to be reached in 2025, after which it will continuously decline.

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