Volkswagen will invest $186 billion by 2030, according to the CEO
Oliver Blume, the CEO of Volkswagen Group, stated that the company intends to invest 160 billion euros ($186 billion) through 2030, signaling a tightening of the belt as the leading carmaker in Europe deals with a significant crisis in its two main markets, China and the US.
As part of Volkswagen’s rolling five-year investment plan, total spending is revised yearly and is 165 billion euros for the 2025–2029 term and 180 billion for the 2024–2028 period, with a high in 2024.
Since then, restrictions on U.S. imports and intense rivalry in China have put pressure on Volkswagen, which owns the Porsche and Audi brands.
Porsche, which sells around half of its vehicles in these two markets alone, has seen a significant reduction in their electric vehicle strategy, which has had a particularly negative impact on profitability.
The focus of the most recent investment plan, Blume told the monthly Frankfurter Allgemeine Sonntagszeitung, was “on Germany and Europe,” encompassing infrastructure, technology, and products. He stated that discussions about an extended savings program at Porsche will continue until 2026.
According to Blume, Porsche is not anticipated to expand in China.
Blume, who will leave his position as CEO of Porsche in January to concentrate on his post as CEO of Volkswagen, stated that discussions about a possible U.S. facility for Audi hinged on possibly significant financial help from Washington.
Although it was not anticipated that Porsche (P911_p.DE) would expand in China, he stated that it was feasible to localize production within the larger Volkswagen group and that a customized Porsche model for China would eventually make sense.
According to Blume, the German state of Lower Saxony and the Porsche and Piech families (PSHG_p.DE), Volkswagen’s two largest investors, have clearly shown their support for the company by extending Blume’s contract as CEO until 2030.
Naturally, however, since Porsche went public three years ago, stockholders have lost money. I have to acknowledge this critique as well.
