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
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Comments