Volkswagen will invest €3.5 billion in future mobility ventures to realign the company after the disaster of diesel-gate and to allow it to meet future consumer needs.
The investment will see the firm begin to move away from traditional combustion engine vehicles and begin a more concerted effort to develop electric powertrain technologies along with other mobility-related technologies.
The money will be invested in VW’s domestic plants and will lay the foundation for the transformation of the firm from a pure automaker into a mobility service provider. By 2020, the Volkswagen brand intends to be completely repositioned.
VW’s chairman of the brand board of management, Dr Herbert Diess said: "With the pact for the future, Volkswagen will be taking a major step forwards. The pact represents a fundamental transformation of the value stream, the development of new competences and strategic investment. We will be strengthening the company's economic viability and competitiveness and will be safeguarding the future of our plants. We will be transforming the entire brand and making it fit for the fundamental transformation of our industry."
To bring Volkswagen out of the ashes of the disastrous test fixing allegations that were first revealed last year, the company will make significant investment in new technologies. Its German plants are to enter the field of developing and producing electric vehicles and components. A pilot plant for battery cells and cell modules is to be developed. At the same time, the future of the conventional units is to be safeguarded. All in all, Volkswagen will invest €3.5 billion in the transformation of the company.
|tags:||Volkswagen Hybrids & EVs|