The Volkswagen Group aims to peak its investment in new software and electric vehicle technology in the next two to three years, after which it aims to generate significant returns from its battery-powered models.
VW’s chief financial officer, Arno Antlitz, has said that by 2026 the company will “hardly” invest in conventional internal combustion engine technology. south german newspaper.
“Then there will be no double investment burden, and that is when we want to make a big profit from electric mobility,” he said.
Volkswagen is driving the industry’s largest electric vehicle and software rollout, with plans to invest around €52 billion ($56.5 billion) by 2026.
The company’s ambitious plans ran into some hurdles due to delays in vehicle software development, setbacks for some major Audi and Porsche models, and eventually led to the then-CEO Herbert Diess last year. was dismissed.
Automakers and other manufacturers continue to fight to keep up with Tesla, which outlined a goal of producing two million cars this year earlier this month.
After a 65% drop in 2022, the electric vehicle leader’s stock has surged 44% so far this year.
Antlitz said VW is now chasing higher profitability to boost its valuation at €73 billion, lagging far behind much smaller Porsche after going public.
The grouper is set to focus on the “most attractive profit pools” in terms of both vehicle segments and geographies, he added.