Volkswagen intends to invest $186 billion by 2030

SadaNews Economy - The CEO of the Volkswagen Group, Oliver Blume, announced that the group plans to invest 160 billion euros ($186 billion) by 2030, a move that reflects the austerity policy adopted by the largest car manufacturer in Europe, amid a severe crisis it is facing in its two main markets, China and the United States.

The total spending, which is updated annually as part of the five-year investment plan, compares to 165 billion euros for the period 2025-2029, and 180 billion euros for the period 2024-2028, which peaked in 2024.

Since then, Volkswagen — which includes the Audi and Porsche brands — has faced significant pressure due to tariffs on its imports to the United States and fierce competition in China.

This has negatively impacted Porsche's profits, especially since it sells nearly half of its cars almost exclusively in these two markets, prompting it to announce a significant reduction in its electric vehicle strategy.

The group’s CEO, Oliver Blume, clarified in an interview with the Frankfurter Allgemeine Sonntagszeitung weekly that the focus of the latest spending plan is on "Germany and Europe," and includes products, technology, and infrastructure. He also reported that discussions regarding a long-term program to reduce costs at Porsche will continue until 2026.

He added that the possibility of establishing an Audi factory in the United States depends on whether Washington will provide significant financial support.

Blume stated that Porsche — which was not expected to achieve growth in China — could benefit from localizing production within the broader Volkswagen group, adding that developing a model specifically for the Chinese market could be a logical option in the future.

He noted that his recent renewal of contract as CEO of Volkswagen until 2030 represents a "clear signal of support" from the Porsche and Piëch families, the major shareholders in the company, in addition to the German state of Lower Saxony, the largest investor in the group.

He added: "But it is also true that shareholders have incurred losses since Porsche went public three years ago. I also have to face this criticism."