Volkswagen approved $40 billion to boost electric cars

Volkswagen announced a budget of 34 billion euros (US$40 billion) on Friday in an effort to become a global leader in electric cars. The world's largest automobile giant in sales says it will spend money on electric cars, autonomous vehicles and new mobility services by the end of 2022.

Tinuku Volkswagen approved $40 billion to boost electric cars

"We are laying the groundwork to make Volkswagen the world's number 1 player in electric mobility by 2025," said Volkswagen CEO Matthias Mueller.

The Wolfsburg-based company admits to having cheated the U.S. diesel emissions test. and new quotas for electric cars in China are driving the company's strategic shift to zero-emission and self-driving technologies. VW now has the most ambitious targets and promises to bring an electric version to 300 vehicle models by 2030.

Mueller said VW would maintain its spending discipline and would switch to investing in new technologies. The company wants to increase its share of electric vehicles to 3 million units by 2025. The estimate assumes car sales will continue to increase at around 12 million per year by the middle of the next decade.

The council's chairman, Bernd Osterloh, said the newly approved spending target will strengthen 10 VW factories in Germany, including investing more than 1 billion euros for a plant in Zwickau to boost production of electric cars.