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VW CEO Warns of Higher Than Expected Electric Car Costs

  • Carmaker targets higher operating profit to offset spending
  • CEO sees 7%-8% return on sales necessary to be ‘crisis-ready’
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Volkswagen AG warned that its ambitious plan to offer an electric version of each model will cost more than it estimated, forcing the world’s largest carmaker to deepen an efficiency push to meet the spending demands.

VW had originally earmarked the shift to battery power to cost 20 billion euros ($23 billion). Now Chief Executive Officer Herbert Diess says this won’t suffice, without providing a new figure. The company needs to reduce expenses more to be able to invest in future technology and weather crises, he said.