VW’s board weighs allocation of $82.5 billion across the next 5 years for electric cars

One of the burrs that needs to be ironed out is Lower Saxony’s influence: not only is the state VW’s second biggest shareholder it is also its home state; Brexit related scenarios are also likely to add to the existing complexity.

As per a source familiar with the matter at hand, Volkswagen’s supervisory board is weighing its options on a five-year spending plan, totaling to more than $82.5 billion (70 billion euros), with the aim of transporting the group to the forefront of the electric car race.

VW’s board is expected to sign off on the capital and development spending targets on Friday, said the source.

Another source briefed on the decisions stated once the go-head is given, these investments are likely to occur between 2018 to 2022.

Volkswagen declined to comment on the size of the planned budget.

VW, the world’s largest automaker, has said it will sink in more than 20 billion euros, which includes VW’s managers and unions are seeking to curb competition from the company’s own brand Skoda and prefers to move some of its production to Germany as well as make the Czech brand pay more for shared technology.

The company’s executives have also been strategizing on ways to pool resources and build electric cars, however the process has been made complicated by the influence of Lower Saxony, VW’s home state which also happens to be its second biggest shareholder.

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