VW invests heavily into an electric future

Volkswagen will invest $205bn over the next five years into the development of electric cars, self-driving vehicles and digital services, in response to growing competition internationally.

New budget considerations illustrate the challenge posed by the technology sector, as electric vehicles are set to go mainstream with self-driving cars not long thereafter.

The cost of developing new technologies is pushing conventional carmakers to co-operate with competitors. Volkswagen chief executive Herbert Diess said talks with Ford about an ­alliance to produce light trucks could be concluded by the end of this year.

The two companies are also discussing co-operating on self-driving vehicles, sources said.

“Our two companies complement each other in many areas,” Mr Diess said last week, but he dismissed speculation of a merger.

“That was never a subject of our discussions. We are not thinking about taking equity,” Mr Diess said.

Earlier this year, Volkswagen unveiled plans to build 16 electric-vehicle factories worldwide, largely by converting existing plants, and to acquire battery capacity to build millions of electric vehicles.

Source: VW Pours Cash into Electric Future
19 Nov 2018

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