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Volkswagen to lower annual investments by €1 billion; focus on hybrid and EVs

The Volkswagen Group is facing some rough times ahead as the company has announced plans to lower annual investments by €1 billion. Although they don’t exactly mention the reasoning behind this decision, it’s safe to say VW is doing this to gain access to additional funds necessary to manage the huge scandal concerning their EA189 turbodiesel engines equipped with illegal software meant to enable the cars effectively cheat during emissions tests.

Cutting €1 billion from investments will obviously have a direct impact on Audi’s future and this could mean the Ingolstadt’s lineup expansion will be slowed down, especially since a few days ago Volkswagen announced plans to postpone or even cancel some projects they consider are not a priority.

Aside from lowering the investment budget, VAG has also revealed to focus on the versatile MQB platform by elaborating more plug-in hybrid and fully electric cars, with the latter providing a maximum range of 186 miles (300 km). Moreover, they want to work on more efficient diesel, gasoline and compressed natural gas engines along with a 48-volt power supply set to be installed in mild hybrid models.

VW also says they want to optimize a MEB electric toolkit for upcoming compact passenger cars and LCVs which will all share a standardized system compatible with numerous vehicle types and structures. Some of these new models will be EVs and according to Volkswagen their range will vary from at least 250 km (155 miles) to as much as 500 km (310 miles).

Adrian Padeanu

Long-time fan of the fabled Four Rings.