Volkswagen has announced plans to boost digital spending, saying it will be critical for it to take the lead in automotive software in the changing mobility sector.
According to the automaker, over the next five years, the company will spend 73 billion euros on digitalization technologies and the development of electric vehicles, which is about half of Volkswagen's total investment budget of about 150 billion euros.
“The transformation of the company and its brands, as well as a strategic focus on the main areas of mobility, will be consistently carried out,” said Hans Dieter Poetsch, head of the supervisory board.
Volkswagen CEO Herbert Diess said last month that the company will adjust its strategy to maintain momentum in electric and autonomous vehicle investment as it tries to make up for lost revenue caused by the coronavirus pandemic.
According to the plan presented on Friday, Volkswagen is doubling its planned digitalization spending to € 27 billion as it seeks to develop a seamless software operating system for cars.
About 35 billion euros of this money will be invested in e-mobility, and 11 billion euros will be allocated for the development of new hybrid vehicles.