VW Approves €34 Billion Budget for EV Push

Volkswagen AG’s supervisory board approved a plan today to invest €72 billion ($85 billion) over five years, nearly half of it to develop and produce electric vehicles.

Sources tell Bloomberg News the company has reduced spending elsewhere to pay for the massive program, while holding overall capital spending to 6% of sales.

VW’s “Roadmap E” plan announced in September calls for the introduction of 80 electric and hybrid models across its eight car brands by 2025. The scheme, which involves developing two EV-specific vehicle platforms, would expand to include an electrified version of all 300 of its group models by 2030.

At the time, VW put the price of the initiative at €20 billion. The new budget hikes that total by 70% and includes new-mobility services and work on autonomous driving systems. CEO Matthias Mueller vows that VW will be the world’s top electric mobility company by 2025.

Last month VW said it also will spend €1.4 billion over the next two years on “green” powertrains and related components for its commercial vehicles.​​