German automaker, Volkswagen, has planned to spend a whopping amount of US$ 40bn in the development of autonomous cars, electric cars, and new technologies that would further benefit the automobile segment. Following the supervisory board’s meeting for the company’s plans from 2018 to 2022, it has been reported that Volkswagen plans to spend this amount in the next five years.
Focus on Digitization and Autonomous Vehicles
Most of the assured amount is planned to go into hybridization and electrification of all of the brand’s models. Calling the process as a reinvention of its cars, Matthias Mueller, chief executive of the company, informed that apart from the development of hybrid and electric cars, the company is also determined to spend the amount on self-driving cars, digitization, and various new mobility services like car-sharing.
Following the footsteps of other carmakers, Volkswagen is prioritizing on the making of smarter and cleaner vehicles that would ply on the roads in future. The German automaker is in a race to catch up with Tesla, the American tech giant.
Pivot to zero-emission vehicles are of substantial importance to the company as it is trying to heal from the scandal of global emission that had tarnished its image. Volkswagen plans to offer at least one electric variation of each of its around 300 models.
Deemed as the world’s largest carmaker, the group comprise carmakers like Skoda, Porche, Audi, Seat, and the core brand of Volkswagen.
The amount that has been signed off during the supervisory board’s meeting is a bit lower than the amount sanctioned during the group’s 2015-2019 investment plan.