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VW Boosts Future Tech Spending, Enlarges Management Board

  • More than half of outlays will be for software, electric cars
  • CEO to give up responsibility for China business after tension
Previews At CeBIT 2017 Tech Fair
Photographer: Krisztian Bocsi/Bloomberg
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Volkswagen AG raised its five-year spending plan and overhauled its management board, seeking to catch up with Tesla Inc. and end an internal dispute over the changes needed to get there.

The German company will invest 159 billion euros ($180 billion) in total in the next half decade, of which 89 billion euros are for technologies like software and electric cars. That’s more than in last year’s rolling plan, pointing to a faster departure from combustion engines. By 2026, about a quarter of all sales will be electric only, VW predicted.