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Volkswagen to Spend $50 Billion on Electric Car Mass Production Plan — 5 Things to Know

1. On Friday, Volkswagen CEO Herbert Diess announced an expansion plan that will include mass producing electric vehicles. The car company now expects to become the most profitable electric car manufacturer in the world.

2. Volkswagen will spend 44 billion euros, which is $50 billion, “on developing electric cars, autonomous driving and new mobility services by 2023.”

3. According to the German automaker, mass producing electric cars will reduce the price to the level of diesel vehicles.

4. Currently, Volkswagen is developing three of its German plants to make them more suitable to build electric cars. This, according to the company, will “increase productivity of its factories by 30 percent by 2025 by building more vehicles from different brands on the same production line.”

5. Labor unions hold half the seats on Volkswagen’s supervisory board, and they need to sign off on the plan. If and once they do, Volkswagen looks primed to bolster profits under electric car superiority.

Source: https://www.reuters.com/article/us-volkswagen-strategy/vw-embarks-on-50-billion-electrification-plan-idUSKCN1NL0JX

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