Volkswagen to Boost U.S. Investments, CFO Says at Davos

Volkswagen CFO Arno Antlitz has announced that the company plans to make additional investments in the United States to double its market share in the country. Speaking at the World Economic Forum in Davos, Switzerland, Antlitz revealed that Volkswagen will need to make further investments to achieve its ambitious target.

Volkswagen's commitment to the U.S. market is evident in its recent investments and expansion plans. The company has already announced plans to invest $180 billion between 2023 and 2027, with more than two-thirds of that budget allocated to "electrification and digitalization." This includes expanding its electric vehicle (EV) portfolio, developing battery technology, and expanding charging infrastructure.

One of the key areas where Volkswagen plans to invest in the U.S. is in its charging infrastructure. The company is investing $450 million in Electrify America, the largest public ultra-fast charging network for electric vehicles from all vendors in North America. This investment will support the expansion of charging infrastructure in the U.S. and Canada, making it more convenient for customers to charge their electric vehicles.

Volkswagen is also investing in battery technology and cell production in the U.S. The company has partnered with SK Innovation to build a battery cell production plant in the country. Additionally, Volkswagen is working with startup QuantumScape and French electronics manufacturer Blue Solutions to develop cutting-edge EV batteries. The company has invested $300 million in QuantumScape, aiming to power its electric vehicles by 2025.

Volkswagen's commitment to the U.S. market is not just about investing in infrastructure and technology. The company is also investing in its workforce and manufacturing capabilities. Volkswagen plans to introduce more than 25 new battery electric vehicles (BEVs) to American consumers by 2030, with the ID.Buzz microbus and new all-electric SUVs planned for introduction in 2024 and 2026, respectively. The company will also expand its EV production in the U.S., starting with the ID.4 in Tennessee later this year.

Volkswagen's investments in the U.S. market align with its global electrification strategy. The company aims to have 55% of all new vehicles sold in the U.S. be electric by 2030. This ambitious target requires significant investment in research and development, manufacturing capabilities, and charging infrastructure.

Volkswagen's strong financial position and commitment to the U.S. market suggest that these investments are likely to yield significant returns. By expanding its EV portfolio, battery technology, and charging infrastructure, Volkswagen can better compete with established players like General Motors, Ford, and Tesla, as well as new entrants like Rivian and Lucid Motors.

In conclusion, Volkswagen's plans to make additional investments in the United States, as announced by CFO Arno Antlitz at the World Economic Forum in Davos, demonstrate the company's commitment to the U.S. market and its ambition to double its market share in the country. By investing in its charging infrastructure, battery technology, and EV production, Volkswagen is well-positioned to achieve its target of having 55% of all new vehicles sold in the U.S. be electric by 2030.