CNN)More than half the money Volkswagen Group spends in the next five years will go towards electric vehicles and other high-technology efforts, the German automaker announced Thursday.
Volkswagen increases spending on EVs to $100 billion uh
By Peter Valdes-Dapena, CNN Business
Updated 1959 GMT (0359 HKT) December 9, 2021
(CNN)More than half the money Volkswagen Group spends in the next five years will go towards electric vehicles and other high-technology efforts, the German automaker any the end of 2026, VW expects that 25% of the vehicles it sells globally will be electric. Currently, electric vehicles account for 5% to 6% of VW sales.
As it prepares for that shift, VW will spend €89 billion, the equivalent of a little more than $100 billion, to speed its push towards electricification. This marks the first time VW is budgeting more than half its total spending -- which totals roughly $180 billion -- for EVs. At the same time, expenditures on hybrid vehicles, which use batteries along with gasoline engines will be reduced by 30%.
The expenditures will include new factories, such as a new plant at the companies headquarters at Wolfsburg, Germany. VW's Project Trinity, a new flagship electric car planned for around 2025, will be built at Wolfsburg. VW also outlined plans for a number of new facilities throughout Europe.
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