Volkswagen hikes investment into autonomous, electric car tech to 73 billion euros

Volkswagen announced plans to spend more on digital technology, saying on Friday it would be crucial to have a leading position in car software in the changing mobility sector.

It will spend 73 billion euros ($86 billion) on electric and hybrid cars technology and digitalization over the next five years, or around half of its total investment budget of around 150 billion euros, it said.

That is up from 60 billion, or 40% of investments, it announced in last year's five-year plan.

"The transformation of the company and its brands as well as the strategic focus on the core mobility areas will be consistently implemented," supervisory board chief Hans Dieter Poetsch said.

Volkswagen Chief Executive Herbert Diess said last month that the company would tweak its strategy to maintain investment momentum for developing electric and autonomous cars as it tries to make up for lost revenues caused by the coronavirus pandemic.

Under the plan presented on Friday, Volkswagen is doubling its planned spending on digitalization to 27 billion euros, as it seeks to develop a seamless, software-based vehicle operating system, it said.

Around 35 billion euros of the money will be invested in e-mobility, and 11 billion euros have been earmarked for the development of new hybrid cars, it added.