Volkswagen shares rise as car maker announces expansions of electric car production

Volkswagen shares are higher as the car maker announced plans to expand its electric vehicle production.

Volkswagen shares rise as car maker announces expansions of electric car production

Volkswagen shares are trading higher Tuesday, as the German car maker announced plans to expand its electric vehicle production levels. The manufacturer who was rocked by ‘diesel gate’ over two years ago, said it will produce battery-powered vehicles at 16 global locations, by 2022.

By 1145 BST, Volkswagen shares were 0.13% higher at €158.78. The stock had moved as high as €159.66 soon after the market open.

Electric vehicle expansion plans

Volkswagen’s CEO Matthais Müller announced the details of its plans to extend its green credentials at the company’s annual media conference in Berlin.

And, as well as increasing the number of locations where battery powered vehicles will be manufactured from the current three, to 16, the carmaker has also secured battery deals for Europe and China worth €20 billion.

A decision will be made on the battery production supplier for North America, “shortly.”

“Over the last few months, we have pulled out all the stops to implement ‘Roadmap E’ with the necessary speed and determination,” Müller told his audience.

He added that a third of the car maker’s nine new vehicles for 218, will be 100% electric powered. Müller added that from 2019, it plans to offer a new electric car, “virtually every month.”

Volkswagen executive’s pay soars

As Muller detailed Volkswagen’s increasing shift to electric vehicles, it was also reported that after the group’s strong earnings in 2017, the company CEO’s pay packet, plus additional benefits, surged around 40% to €10.14 million.

Separately, looking ahead to 2018, Volkswagen expects sales and deliveries to “modestly exceed” the upbeat 2017 performance.

“Sales revenue for the Volkswagen Group is expected to be up by as much as 5% on the prior-year figure,” the German-based manufacturer said. “In terms of operating profit, an operating return on sales of between 6.5% and 7.5% is anticipated.”

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