After having set a global strategy to accelerate its shift to make fully electric vehicles only in the new future, the second largest car maker of the world and German auto giant Volkswagen also expects to be able to double the number of deliveries of its electric vehicles as well as increasing profits for its core brand this year.
The company has set a target of delivering more than 45,000 electric cars of the Volkswagen brand in the current year, Volkswagen said. For the entire group as a whole, the company gas set a target to deliver at least 1 million electric vehicles in the same period.
The German auto maker said that a significant year-on-year increase in sales revenue and an increase in profits is being targeted by the core brand of the company.
There was a rise of as much as 7 per cent in the preferred stock of the group and reached its highest value since June of 2015. This surge was driven by more investments in the stocks from institutional and retail investors who were encouraged to do so by the efforts of Volkswagen to surpass the United States based electric car maker Tesla in the global electric car segment.
The brand new ‘Accelerate’ strategy for its main brand was unveiled earlier this month by Volkswagen. On that occasion, the company said that it was expect its range of fully electric vehicles to comprise more than 70 per cent of the of total vehicles sales of the company in eth European market 2030 which was double that of its previously announced target of just 35 per cent in the same period.
By 2025, making of an investment of 16 billion euros ($19 billion) in electrification and digitalisation has also been set for itself by the Volkswagen brand.
And in order to be able to finance that huge investment, the company has also set a target of reducing its fixed costs by as much as 5 per cent by 2023 while also putting a freeze on the number of employees at January 2021 levels. The company is also implementing a strategy to enhance productivity at its factories by 5 per cent a year and reduce the costs for raw materials by 7 per cent annually.
The company said that hundreds of millions of euros in revenue in the coming years would be generated by the company through this new financing strategy.
Within the last four month, the stock value of the group has more than doubled which has increased the market capitalisation of Volkswagen to more than 130 billion euros as on Wednesday.
(Adapted from Reuters.com)