Volkswagen (VWAGY) increased another target for the production of electric cars as the Ford Motor (F) partner spends massively on electrification. Volkswagen stock gained.
XThe world's biggest carmaker by sales expects to produce 1 million electric cars by 2023, two years earlier than it previously forecast, then ramp up to 1.5 million electric cars by 2025.
Volkswagen reported 37,000 deposits for the ID.3, a compact electric car based on an all-new electric platform and set to launch by summer 2020.
Volkswagen ultimately plans a slew of electric cars based on the platform, known as MEB. It's licensing the MEB technology to others, including Ford, while investing 33 billion euros on electrification by 2024. Ford and Volkswagen announced an expanded partnership in July.
The German's auto giant's fast ramp-up of electric cars follows the upgrade of a longer-term target earlier this year. In March, VW said it plans to build 22 million battery-powered vehicles over the next 10 years, compared with an earlier goal of 15 million.
Volkswagen Stock Rises
Shares of Volkswagen rose 0.6% to 19.41 on the stock market today, testing the 50-day line. Ford stock fell 0.95%. General Motors (GM), which recently announced a joint venture with LG Chem on batteries for electric cars, added 0.2% Friday.
GM and Ford are also investing billions on electrification. Automakers broadly plan to flood markets with electric and hybrid cars, as China leads the charge on electric vehicles.
Meanwhile, Nissan (NSANY) has told managers to slash nonessential spending as car sales and profits slump, sources told Reuters. The money-saving drive is in place until March and is likely to continue into next fiscal year.
In November, Nissan reported a 70% drop in second-quarter profit and slashed its full-year forecast to an 11-year low. Its U.S. sales, especially hard hit, are down 8.6% in 2019, Cox Automotive estimates.
"Managers have been told to put the kibosh on unnecessary travel, sales incentives and promotional events to 'conserve every yen,' " Reuters said.
Find Aparna Narayanan on Twitter at @IBD_ANarayanan.
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The post The World's Biggest Carmaker Gets More Aggressive Again On Electric Cars appeared first on Investor's Business Daily.
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