VW to Spend €19 Billion in 5 Years on Powertrains

Volkswagen AG says it will invest about €19 billion ($20.7 billion) on advanced piston and electrified powertrains between now and 2022 as it strives to meet tougher emission standards in major markets.

CEO Matthias Mueller says the group will spend €10 billion over the period to improve the fuel efficiency of its piston engines by 10%-15%, Reuters reports, citing his comments at a conference in Vienna. At the same time, Mueller says the company intends to invest another €9 billion on hybrid and all-electric powertrains.

Mueller says piston engines will remain “relevant” for another 20 years. But he declares “the future will be ruled by electric drives.” He describes VW's five-year powertrain initiative as a way to create a “future-proof drives portfolio.”