VW Targets Significant EV Returns From 2026, CFO Tells SZ

  • In Business
  • 2023-01-29 18:00:00Z
  • By Bloomberg

(Bloomberg) -- Volkswagen AG sees investments in new software and electric-vehicle technology peaking in the next two to three years with a goal of making significant returns from battery-powered models from then onward.

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By 2026, Europe's biggest carmaker will be making "hardly any" investments in legacy combustion-engine technology, VW Chief Financial Officer Arno Antlitz said in an interview with Sueddeutsche Zeitung.

"The double investment burden will fade then, and that's when we want to make significant returns from electric mobility," he said.

VW is driving forward the industry's biggest rollout of electric cars and software, earmarking some €52 billion ($56.5 billion) in investments through 2026. The company's ambitious plans have hit a few hurdles after delays in developing vehicle software saw some key Audi and Porsche models pushed back, ultimately leading to the ouster of then-chief executive officer Herbert Diess last year.

The German carmaker and other manufacturers continue to battle to catch up with Tesla Inc., which earlier this month outlined a goal of making two million cars this year. Shares in the EV car leader have jumped 44% so far this year after tumbling 65% during 2022.

VW is pursuing a boost to profitability to raise its valuation, currently at €73 billion and trailing the much smaller Porsche AG following its listing, Antlitz said. The carmaker is set to focus on the "most attractive profit pools" both in terms of vehicle segments and regions, he added.

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©2023 Bloomberg L.P.


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