The Volkswagen Group plans to invest 60 billion euros in combustion engines in the coming years. Many media outlets suspect a change in strategy, as sales of electric cars are declining. This is misleading, because the plans date back to the beginning of 2023 and VW wants to invest 120 billion euros in electromobility at the same time.
“VW with a new strategy: 60 billion euros for the development of combustion engines”, “Interest in electric cars is declining: VW is investing 60 billion euros in combustion models” or “Electric cars are selling poorly: Volkswagen is investing 60 billion euros in new combustion engines”: This or similar is what numerous media reports are currently saying about VW’s current investment plans.
Fact is: VW CFO Arno Antlitz announced at an event of the news agency Reuters in Munich at the beginning of June 2024 that around 60 billion euros will be invested in combustion technologies in the future. However, he also confirmed what is only mentioned in passing in many reports.
Combustion engines: VW is not changing its strategy
Namely, that VW wants to invest 120 billion euros in electrification and digitalization at the same time. The even bigger problem: Contrary to numerous reports, this is by no means a change in strategy. VW's investment plans have been known since the beginning of 2023 and have now only been confirmed.
A frequently suggested connection with the currently declining sales figures for electric cars is also misleading in this respect. The number of new registrations of electric cars has only been stagnating since the end of 2023. However, VW's investment plans were already known months earlier.
Rather, the Volkswagen Group is sticking to its previous electric strategy. CEO Oliver Blume recently spoke out in favor of maintaining the currently planned ban on combustion engines from 2035.
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Source: https://www.basicthinking.de/blog/2024/06/24/milliarden-fuer-verbrenner-irrefuehrende-berichte-zu-vw/
