Volkswagen announces a major investment of nearly $200,000 million to accelerate its electrification and digitization.

Volkswagen wants to continue expanding its commitment to electric mobility and plans to do so with a million dollar new investment over the next five years. This was reported by the German company. will allocate 180,000 million euros (about $193,000 million) between 2023 and 2027 which will be used, among other things, for “electrification and digitization”.

In particular, 68% of these 180,000 million euros (about 122,400 million euros) will focus on increasing commitment to electric vehicles. This is significantly more than the one the company announced in its plan for the last five years, where they allocated 56% of the total investment, which amounted to 124,000 million euros, to “electrification and digitalization”.

In addition to using part of the money for internal combustion vehicles, Volkswagen will allocate another 15 billion euros to build factories for the production of batteries under the brand name PowerCo. The company expects that by 2030 the annual sales of this division will reach more than 20,000 million euros.

Volkswagen says it may continue to invest in electric vehicles despite the “difficult economic environment”.

The million dollar investment over the next 5 years comes after 2022, when Volkswagen’s operating income reached 22,500 million euros, up 13% from 2021. Supply of electric vehicles by the company also increased by 26%thanks in part to markets such as China, where 68% of all vehicle shipments are electric models.

Despite these good numbers, Volkswagen sales fell 7% compared to 2020.1, 8.3 million vehicles were sold last year.

Arno Antlitz, CFO and COO, emphasizes: CNBC that even in this case and despite the “difficult economic environment”, The company is in a stable financial position, which allows it to “continue to invest in electrification and digitalization.”“Fiscal year 2023 will be no less challenging given the overall economic evolution. However, the strength of our brands with a compelling product offering and an order book of 1.8 million vehicles allows us to head into fiscal year 2023 with confidence,” he said.