Volkswagen to invest $193 billion to hit 50% EV sales target by 2030

The unit suffered an operating loss of 2.1 billion euros in 2022 on revenue of 800 million euros, according to the car maker's annual report released on Tuesday.

In the latest investment plan, 15 billion euros is ringfenced for battery plants and raw materials, with the company focusing first on securing the raw materials it needs and then on building new sites.

Board member Thomas Schmall said on Monday the carmaker was covered in Europe by the three plants in the works and was in no rush to pick new sites. It also announced its first North American plant in Canada, due to start production in 2027.

Investment in combustion engine technology will peak in 2025 and decline from then on, said the automaker, which has more ambitious electrification targets than some rivals.

The investment decisions are targeted towards fulfilling a 10-point plan developed by Chief Executive Oliver Blume after he took the helm of the automaker in September.

Later on Tuesday, Volkswagen is also expected to share the results of a 'virtual equity story' exercise instigated by Blume. That had all of the company's brands, which span from Audi to Bentley, prepare for a listing as a training exercise to become more attractive to capital markets.

The most likely stock market candidate is battery unit PowerCo. Reuters in November reported talks were on with investors to buy into the division ahead of a possible partial listing.

The carmaker this month issued an optimistic outlook for the year ahead that sent shares soaring, forecasting a 10 percent to 15 percent rise in revenue on 14 percent higher deliveries despite supply chain challenges.

Volkswagen's earnings margin in 2022 was at the upper end of its 8.1 percent forecast, with sales and earnings outpacing 2021 levels despite supply chain turmoil dragging its net cash flow far below target.