Volkswagen Group (XETRA:VOW) (VW) will increase its spending on electric vehicles (EVs) to US$100bn over the next five years in a bid to increase sales of the emissions-free cars from 5% of its total to 25%.
The company will now spend more than half of its budget on EVs, with the money going towards electrifying its existing plants such as Hanover and Wolfsburg, where its flagship electric car, currently called Project Trinity, will be built from 2025 onwards.
Sites in Salzgitter and Kassel will receive investment towards expanding the existing production of battery systems, rotors/stators, and electric motors.
The German vehicle manufacturer, which also owns brand such as Skoda, Audi, and Porsche, will be reducing its expenditure on hybrid vehicles by 30% over the same period.
Hans Dieter Pötsch, chairman of the supervisory board of Volkswagen AG said, “The resolutions passed today show how resolutely we are driving forward the transformation of the Volkswagen Group (XETRA:VOW).”
READ: Volkswagen considering Porsche IPO to fund switch to EVs – reports
VW was also reportedly looking into the possibility of floating Porsche, as a means of funding a shift to the production of electric vehicles.
A decision is yet to be made on this, with the luxury company possessing a potential value of anywhere between £38bn and £77bn, according to Reuters.