People take a look at the Volkswagen id buzz electrical vehicle throughout journalism day at the Los Angeles Auto Show in Los Angeles, California, November 17, 2022.
Volkswagen on Tuesday revealed strategies to invest 180 billion euros ($1926 billion) in between 2023 and 2027, with more than 2 thirds targeting “electrification and digitalization.”
The German vehicle huge previously this month published a full-year 2022 operating revenue of 22.5 billion euros, up 13% from the previous year, with battery and electrical car (BEV) shipments increasing 26%.
The BEV growth was driven by a 68% spike in China, while the business likewise finished the landmark electrification of its plant in Chattanooga, Tennessee.
However, general shipment numbers decreased by 7% to 8.3 million automobiles in 2022 and the vehicle department’s net money streams reduced to 4.8 billion euros from 8.6 billion euros in 2021.
In Tuesday’s yearly report, the business associated this to “an increase in working capital due to supply chain and logistics issues, especially towards the end of the year,” and forecasted this ought to “largely reverse” throughout 2023.
CEO Oliver Blume stated Volkswagen “set clear and ambitious targets and took necessary decisions to streamline processes” in 2022, while the coming year will be “decisive” for carrying out the group’s tactical goals.
Volkswagen Group CFO and COO Arno Antlitz stated that the business’s strong monetary position ought to allow it to “continue investing in electrification and digitalization” even in a “challenging economic environment.”
“We have rates of interest increasing and the general need is a little boiling down from a client point of view, from a market point of view, however on the other hand we are still running in an environment, in an economy, that is defined by [semiconductor] supply that is still not enough,” Antlitz informed CNBC on Tuesday, including that this worldwide lack of semiconductors is reducing.
“Based on that, we have an order book which is almost 1.8 million cars. Based on our strong products, strong brands and that order book, we are rather confident for 2023.”
Net capital in the vehicle department increased to 43 billion euros by the end of 2022, sustained by the effective IPO of high-end brand name Porsche, which reported record revenues on Monday and provided an enthusiastic long-lasting outlook.