Volkswagen shares are higher Monday, after the German car maker announced its intention to invest heavily in the electric car industry. VW’s CEO said Friday, that it intends to mass produce electric vehicles, which will greatly reduce the cost of manufacturing the vehicles, thus making them more affordable for the consumer market.
By around 0940 GMT, VW shares were 1.14% higher at €145.56. The stock has been trending a little lower in the past week or so.
VW’s electrification plan
VW said Friday, that it will invest some €44 billion in creating an environment in which it will mass-produce electric vehicles for a global market. That will include new manufacturing plants, developing autonomous vehicles and other digitised mobility services.
With both eyes firmly on the future of driving, VW intends to move forward into electric and self-driving tech, as quickly as possible.
“One aim of the Volkswagen Group’s strategy is to speed up the pace of innovation,” said VW CEO Herbert Diess, after a regular Supervisory Board meeting. “We are focusing our investments on the future fields of mobility and systematically implementing our strategy”.
Diess added that talks about a joint venture with Ford are progressing well. Both businesses have identified on agreed potential synergies if the two begin a formal agreement.
“The talks with Ford about an industrial cooperation announced earlier are progressing positively so far,” VW said.
Electric vehicle plants
One of the areas that much o the planned investment will be focused is the delivery of manufacturing plants where electric vehicles can be mass produced. VW said two of its German plants, in Emden and Hanover, will be transformed to enable electric vehicles to roll off the production line by 2022.
“We have redefined the strategic guideposts for future plant assignment,” said VW board member Oliver Blume.
“We are making our plants fit for the future. Among other things, this includes bundling cross-brand product families to maximize synergies and cost benefits. That is how we will be realizing the full potential of the Volkswagen Group,” Blume added.