Volkswagen to Pour Billions Into Electric Cars
By William Boston
Nov. 16, 2018 11:03 a.m. ET
BERLIN— Volkswagen AG will invest nearly $150 billion over the next five years, with about one-third earmarked for the development of electric cars, self-driving vehicles and digital services, as the German auto maker responds to growing competition from Silicon Valley.
The new budget from Volkswagen—traditionally one of the biggest spenders in the global auto industry—underscores the challenge posed by the technology sector, as electric vehicles are set to go mainstream and self-driving cars are on the verge of hitting the streets.
The cost of developing new technologies is pushing conventional auto makers to cooperate with competitors. Volkswagen Chief Executive Herbert Diess said talks with Ford Motor Co. regarding an alliance on producing light trucks could be concluded by the end of 2018.
The two companies are also discussing cooperating on self-driving vehicles, according to people familiar with the situation.
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