Late final week, we shared an article with you about Volkswagen Group’s upcoming electrical automobile investments. It’s because the group’s new five-year planning cycle was simply accredited by the board. Now, this week, the automaker formally introduced the main points of the plan. 

The Volkswagen Group plans to speculate $86 billion in e-mobility, hybrid tech, and digitalization over the subsequent 5 years. Take note, $41 billion of that shall be invested in battery-electric automobiles alone.

Volkswagen Group CEO Herbert Diess is forward-thinking in relation to automobile electrification. As well as, he is one of many few automotive CEOs who credits Tesla’s momentum. He says it is going to be a race towards Tesla, however VW has a couple of benefits.

We have mentioned many occasions, if some other present automaker has the mandatory capital and assets to present Tesla a run for its cash, Volkswagen arguably tops the checklist. Diess has watched Tesla develop and succeed, and he has a positive relationship with CEO Elon Musk. He is additionally prepared to confess that the race towards Tesla could also be a troublesome one.

Tesla is rising rapidly, constructing a number of factories on the similar time, bettering its battery know-how, and testing its Full Self-Driving beta know-how. Whereas the Silicon Valley automaker is not practically as giant as many automakers, it is presently the chief when it comes to EV manufacturing.

In keeping with an article in Electrek, CEO Diess made some feedback after asserting VW Group’s new five-year plan. He made it clear that the investments are in place, a minimum of partially, to compete with and meet up with Tesla. Diess mentioned:

“Sure, it’ll be a race with Tesla.”

Nonetheless, he additionally made it clear that he believes the Volkswagen Group has some key benefits. Diess particularly talked about its totally different physique types and its dealership community. The automaker’s manufacturing capability additionally has the potential to rapidly meet up with Tesla, particularly with the brand new investments. Diess continued:

“They’re additionally ramping up quick. We’ve extra totally different physique types, and in relation to a longtime dealership community, we should always have a bonus over Tesla.”