With the aim of going green, German car manufacturer Volkswagen has earmarked 75 billion Euros (86.4 billion) from 2021 to 2025 to tap into its potential to be more environmentally- friendly. The amount equals to 50 per cent of the company's entire investments. The firm wants half of its sales to be electric by 2030, 100 per cent by 2040 and aims at zero-carbon emissions by 2050.
Developing Software To Boost Profits
Volkswagen CEO Herbert Diess said, "Cars are getting close to autonomy, many cars will drive around autonomously. We will have a higher share of EVs. Mobility as a service will increase." CARIAD, Volkswagen's software company, will offer platforms with various features like a unified infotainment system. The German company announced that it would establish a "controlled battery supply chain" and would open six mega factories across Europe. The first factory would be in Sweden and is expected to commence operations in 2023. The CEO highlighted that all carmakers are taking extensive efforts to shift to electronic vehicles. The firm said that it is working to develop software to boost profits and focus on transitioning its vehicles from internal combustion to electrically operated batteries.
A Model Sold Out In Pre-Sales In 2019
Volkswagen's announcement about EVs strategy came ahead of the list of environmental policies by the European Union. The company is already rolling out fully electric vehicles. The company's fully electric ID.3 model sold out in the pre-sales in 2019. The business of car manufacturing is rapidly racing towards electrification. Purchasing electric vehicles would be a massive shift for the ordinary person as the dynamics of commuting would change. Apart from the environmental benefits, the cars would enable increased savings because of low maintenance and negligible spending cost on fuel.