As the Volkswagen Group works to control the damage from its emissions cheating scam, it plans to cut planned investments in property, plant and equipment for next year by about €1 billion.
One area, however, will see an increase. VW plans to boost spending on electrification technologies by €100 million, continuing its development of electric drive systems for the Volkswagen, Audi and Porsche brands.
Most of the capital expenditure will go for new products, as well as continuing improvements to the modular toolkits, including the modular electric toolkit (MEB). However, at least one item on EV fans’ wish list will be postponed: the electric version of the Phaeton luxury sedan.
“We are operating in uncertain and volatile times and are responding to this,” said Chairman of the Board Matthias Müller. “We will strictly prioritize all planned investments and expenditures. 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.”
Source: Green Car Congress