The Volkswagen Group has announced it’s planning to invest €180 billion (~A$289 billion) between 2023 and 2027, with over two-thirds of that earmarked for digitalisation and electrification.
68 per cent of this total investment – or around €122 billion (~$197 billion) – will be for these “future fields”, and the company says it’s focusing in particular on the North American and Chinese regions.
In addition, there will be ongoing investments in the “last generation of combustion engines”.
The peak in the Volkswagen Group’s investment is expected to be reached in 2025, after which it’s claimed to continuously decline.
The Group said it recorded “solid full year results” for fiscal year 2022, and has a “strong financial basis on which to build in 2023”.
The company posted a “robust” operating profit of €22.5 billion (~A$36 billion) in 2022, which is up 12.5 per cent compared with 2021.
Despite this, the overall number of vehicles delivered across of its brands declined seven per cent to 8.3 million in 2022.
Volkswagen Group says it currently has an order book of 1.8 million vehicles and expects supply chain bottlenecks to “gradually ease” in 2023.
Deep within the company’s annual report it notes the Cariad software unit suffered a loss of €2.1 billion (~A$3.2 billion) in 2022.
“We were struggling with software issues on the Cariad level in VW Group over the last years,” said Volkswagen Group CEO Oliver Blume.
“Now they are [close] to finishing the software platform for the Macan.”
Looking to the future, Volkswagen Group’s recently-acquired Scout Motors brand recently announced it will build its upcoming pickup trucks and SUVs at a plant near Columbia, South Carolina from late 2026.
The company has said it’s investing US$2 billion (~A$3 billion) in getting this production facility set up, with groundbreaking planned for mid-2023.