Connect with us

Hi, what are you looking for?

EV Obsession

Electric Vehicles

Volkswagen Planning To Slash Overall Spending By Around €1 Billion In 2016

Planned investments into Volkswagen’s Automotive Division will be slashed by around €1 billion in 2016 as a response to the ongoing diesel emissions cheating scandal, according to recent reports.

The move means that planned investments by the company will be capped at around €12 billion next year. Regardless of that overall cut in investments, the company will actually be increasing its investments into “alternative drive” technologies (electric vehicles, etc) by around €100 million next year as well.

Volkswagen logo

This increased level of investment will be used to move things along at a faster rate, with regard to electric offerings from Volkswagen, Audi, and Porsche.

The Chairman of the Board of Management of Volkswagen AG, Matthias Müller, commented: “We are operating in uncertain and volatile times and are responding to this. We will strictly prioritize all planned investments and expenditures. As announced, anything that is not absolutely necessary will be cancelled or postponed. We are not going to make the mistake of economizing on our future. For this reason we are planning to further increase spending on the development of e-mobility and digitalization.”

Green Car Congress provides more:

Most of the capex is earmarked for new products, the continuing rollout and enhancement of the modular toolkits, and the completion of ongoing investments to expand capacity. Examples include product start-ups such as the next-generation Golf, the Audi Q5, the new Crafter plant in Poland, as well as upfront expenditures for the modular electric toolkit (MEB). Approximately 50% of capex will be spent on the Group’s 28 locations in Germany.

Müller also outlined the first projects as examples where investments are being spread out to a greater extent or cut back. For example, construction of the planned new design center in Wolfsburg is being put on hold, saving approximately €100 million. In addition, the construction of a paint shop in Mexico will be reviewed. In the model range, the successor to the Phaeton—a pure-play electric model—is being delayed.

Apparently, the company’s joint ventures in China won’t be affected, though, as they aren’t consolidated — and investments from these joint ventures are financed with the joint ventures’ own funds.

 
Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy. You can follow his work on Google+.

Comments

Ad




Free electric vehicle news daily

Ad




Tesla Seat Factory Tour

Ad

Advertisement

You May Also Like

100% Electric Vehicles

Revolutionary EV concept provides solution to aftermath of natural disasters delivering large mobile battery supply to power recovery operations PARIS – Nissan has unveiled a...

100% Electric Vehicles

Mazda’s first battery electric vehicle, the Mazda MX-30 EV will arrive in the UK next March. Limited to 500 cars in the UK, the £27,495* Mazda MX-30 First...

EV Companies

In a new interview on the podcast Sway, Elon Musk shared his thoughts about A.I. and several other things. Although the main topic was...

Batteries

Rolls-Royce has completed testing of the ground-breaking technology that will power the world’s fastest all-electric plane. All the technology has been tested on a...