Volkswagen stated it prepares to invest billions of euros through 2022 to boost its portfolio of combustion and electric drives as it supports more tightening of emissions rules in crucial markets.
Europe’s biggest automaker in 2016 revealed a multi-billion-euro shift to welcome electric vehicles and new mobility services as it fights to conquer its diesel emissions scandal, and the company is cutting expenses in all areas of operations to finance this transformation.
Volkswagen will invest about 10 billion euros ($11 billion) during the next five years to raise the fuel performance of combustion engines by 10 to 15 percent in anticipation of more stringent emissions standards in Europe, the United States and China, CEO Matthias Mueller stated on Friday.
VW will is going to triple its investment in electric drives to around 9 billion euros over the same period, consisting of a brand-new generation of complete hybrids for the United States, where its emissions scandal broke in 2015.
It has invested 3 billion euros on zero-emissions technology in the last five years.
“Despite the fact that contemporary combustion engines will matter for at least another twenty years, it is clear that the future will be ruled by electric drives,” Mueller stated, mentioning a need to respond to “epochal changes” in industry.
“What’s at stake is to develop a future-proof drives portfolio as a basis for transforming the core autos business,” Mueller informed a vehicle industry conference in Vienna.