Hyperdrive
VW Lifts Profit Target as Batteries and Software Boost Sales
- Carmaker sees 8% to 9% return on sales in 2025, up from 7-8%
- CEO further fleshes out plans to battle Tesla on EVs, autonomy
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Volkswagen AG ratcheted up its mid-decade profitability goal as it hones plans to become the electric-car leader and cash in on what it expects to be a massive new revenue stream from software.
Europe’s largest automaker will target an 8% to 9% operating return on sales in 2025, up from 7% to 8% previously. After wooing investors with a Tesla Inc.-style battery briefing in March, Chief Executive Officer Herbert Diess is elaborating further on VW’s plans to phase out combustion engines and equip cars with software systems that enable automated driving and can be updated over the air.