Oliver Blume, the CEO of Volkswagen Group, stated that the company intends to invest 160 billion euros ($186 billion) through 2030, indicating a tightening of finances as Europe’s leading manufacturer deals with a serious crisis in its two main markets, China and the US.
As part of Volkswagen’s rolling five-year investment plan, total spending is revised yearly and is 165 billion euros for the 2025–2029 term and 180 billion euros for the 2024–2028 period, with a high in 2024.
Since then, restrictions on U.S. imports and intense rivalry in China have put pressure on Volkswagen, which encompasses the Porsche and Audi brands.
Porsche, which sells around half of its vehicles in these two markets alone, has seen a significant reduction in their electric vehicle strategy, which has had a particularly negative impact on profitability.
Blume stated to the monthly Frankfurter Allgemeine Sonntagszeitung that the most recent spending plan was “on Germany and Europe,” encompassing infrastructure, technology, and goods. He stated that discussions about an extended savings strategy at Porsche will continue until 2026.
BLUME SAYS PORSCHE IS NOT EXPECTED TO GROW IN CHINA
Blume, who will leave his position as CEO of Porsche in January to concentrate on his post as CEO of Volkswagen, stated that discussions about a possible U.S. facility for Audi hinged on possibly significant financial help from Washington.
He stated that localising production within the larger Volkswagen group was feasible and that a custom Porsche model for China would eventually make sense, even though Porsche was not anticipated to grow in China.
According to Blume, the recent renewal of his contract as CEO of Volkswagen until 2030 was a clear indication of support from the two largest investors in the company, the German state of Lower Saxony and the shareholding Porsche and Piech families.
Naturally, however, since Porsche went public three years ago, stockholders have lost money. I have to acknowledge this critique as well.
