Volkswagen Just Announced an Absurd Investment In EVs

Volkswagen just announced that it will spend 180 billion Euros ($193 billion at current exchange rates) in its business between now and 2027, with the vast majority of that earmarked for "electrification and digitization." If that sounds like a lot, it is. The figure is significantly greater than what other automakers have thrown into EVs.

That means the company will have a roughly $120 billion war chest to spend on converting its lineup to a highly digital, all-electric fleet. That's a staggering number, and more than double what Ford has set aside for its EV plans. The Blue Oval has committed $50 billion to its electrification plans. Toyota's spending $70 billion on electrified vehicles over the better part of the next decade, with $35 billion set aside for all-electric cars. GM's committed $35 billion through 2025.

The Volkswagen number is outsized, and comes from a company that's already spent considerably to take an early lead in the EV space. Few companies have gone so all-in on electric vehicles, in large part because few companies have needed an environmental pivot as badly as post-Dieselgate Volkswagen. At that time, the company was being forced by regulators to invest in EV charging infrastructure at education. Remember that what other companies might spend on EVs, VW has paid in Dieselgate penalties alone. VW claims it has shelled out well over $20 billion, per the New York Times, in fines and legal settlements, and VW itself claims to have lost some $34 billion overall.

Even in that context, the over-the-top investments VW has made since prove the company is serious about being an EV tech and sales leader.

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