People look at the Volkswagen id buzz electric car during the press day at the Los Angeles Auto Show in Los Angeles, California, November 17, 2022.
Mike Blake | Reuters
Volkswagen on Tuesday announced plans to invest 180 billion euros ($192.6 billion) between 2023 and 2027, with more than two thirds targeting “electrification and digitalization.”
The German automotive giant earlier this month posted a full-year 2022 operating profit of 22.5 billion euros, up 13% from the previous year, with battery and electric vehicle (BEV) deliveries rising 26%.
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The BEV expansion was driven by a 68% spike in China, while the company also completed the landmark electrification of its plant in Chattanooga, Tennessee.
However, overall delivery numbers declined by 7% to 8.3 million vehicles in 2022 and the automotive division’s net cash flows decreased to 4.8 billion euros from 8.6 billion euros in 2021.
In Tuesday’s annual report, the company attributed this to “an increase in working capital due to supply chain and logistics issues, especially towards the end of the year,” and projected this should “largely reverse” over the course of 2023.
CEO Oliver Blume said Volkswagen “set clear and ambitious targets and took necessary decisions to streamline processes” in 2022, while the coming year will be “decisive” for executing the group’s strategic aims.
Volkswagen Group CFO & COO Arno Antlitz said the strong financial position should enable the company to “continue investing in electrification and digitalization” even in a “challenging economic environment.”