The Volkswagen Group has announced that over the next five years the company will spend almost €44bn (US$50bn) on the future issues of e-mobility, autonomous driving, new mobility services and digitization in its vehicles and at its plants. This significant outlay represents approximately one-third of total expenditure for the 2019-2023 period.
“One aim of the Volkswagen Group’s strategy is to speed up the pace of innovation,” said Herbert Diess, CEO of Volkswagen Aktiengesellschaft. “We are focusing our investments on the future fields of mobility and systematically implementing our strategy.”
The company also announced that both the capital expenditure ratio and the R&D ratio in the Group’s automotive division are expected to continue to decline to 6% from 2020 onward. While the net cash flow target of a minimum of €10bn (US$11.4bn) by 2020 is still on course, the diesel crisis will, however, affect cash outflows in planning years 2019 and 2020.