Volkswagen: to boost investment in 'electric offensive'

(CercleFinance.com) - Following a "solid" fiscal year in 2018, the Volkswagen brand will step up its rate of transformation this year, with the German carmaker set to launch an "electric offensive.
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The brand plans to increase its investment from 2019 to 2023 to 19 billion euros, which is 8 billion euros more than originally planned for this period.

At the same time, VW is rolling out an earnings improvement program that is aimed at achieving a sustained contribution of 5.9 billion euros from 2023, through reduced complexity and optimised material costs.

In particular, Volkswagen will be investing 4.6 billion euros in IT systems to digitize administrative processes.

However, the company estimates that the automation of routine tasks will result in between 5,000 and 7,000 redundancies being made by 2023.

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