Volkswagen (VOW3) plans to spend around $50 billion for the development of electric cars, autonomous technology and other mobility services by 2023.
The company hopes to reduce costs through the mass production of electric cars and although the increased spending on new technology is likely to impact earnings initially, Volkswagen’s goal is become the most profitable electric carmaker over time.
Volkswagen will convert three of its factories in Germany for the production of electric vehicles. The company is also exploring its options on whether to produce its own batteries or enter into partnerships with battery manufacturers.
The German carmaker also has broad plans to improve productivity by 30% at its factories by 2025 and also to reduce capital expenditures in the near future. Volkswagen plans to achieve these goals by using the same production lines to build vehicles of different brands and also by relocating the production of certain models to different countries.
A look at Ford versus GM in the world of autonomous vehicles
Volkswagen is reportedly looking at possible partnerships with other car companies as well. The company said it is mulling the various aspects of a collaboration with Ford and hopes to figure out more details by the end of 2018. Although Volkswagen currently plans to work with Ford on commercial vehicles, the German automaker ruled out any plans of mergers or investments in its American counterpart.
Volkswagen had been embroiled in a diesel emissions controversy over the past few years and this strategy signals a move in the right direction for the company.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
Comments