Volkswagen targets significant EV earnings from 2026

Volkswagen AG aims to peak its investment in new software and electric vehicle technology in the next two to three years, after which it aims to generate significant returns from its battery-powered models.

VW’s chief financial officer, Arno Antlitz, said in an interview with Sueddeutsche Zeitung that by 2026 Europe’s largest automaker will “hardly” invest in conventional internal combustion engine technology.

“Then there will be no double investment burden, and that is when we want to make a big profit from electric mobility,” he said.

Volkswagen is driving the industry’s largest electric vehicle and software rollout, with plans to invest around €52 billion ($56.5 billion) by 2026.

The company’s ambitious plans saw delays in developing vehicle software set back several major Audi and Porsche models, ultimately leading to the dismissal of then-CEO Herbert Diess last year. After connecting, I ran into a few hurdles.

German automakers and other manufacturers continue to fight to keep up with Tesla, which outlined a goal of producing 2 million cars this year earlier this month.

After a 65% drop in 2022, the EV leader’s stock has surged 44% so far this year.

Antlitz said Volkswagen is seeking improved profitability to boost its current valuation of 73 billion euros, lagging far behind much smaller Porsche AG after going public.

Automakers plan to focus on the “most attractive profit pools” in terms of both vehicle segments and regions, he added.

read: Volkswagen targets $75 billion for Porsche IPO valuation