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VW raises profit target on growing EV confidence

Volkswagen is feeling more bullish about the coming years. On Tuesday (July 13) the German giant said it was raising its long-term profit target. It now expects a return on sales for 2025 of 8-9%, up from the 7-8% previously targeted. The hike comes as VW grows more confident about managing the shift to electric and self-driving vehicles. It now expects half of all its sales to be battery-powered by 2030. Making that change will require massive spending. But after reporting blow-out first-half earnings last week, VW is confident it can fund planned investment totalling 150 billion euros – or about $178 billion. The firm says it will be helped by synergies across its wide portfolio of brands – from budget-focused Seat and Skoda, to upmarket Porsche and Audi. VW said last month that it would stop selling gas-guzzlers in Europe by 2035. But one other target comes much sooner. It aims to overtake Tesla as the world’s biggest maker of EVs by 2025.

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