Volkswagen on Tuesday introduced plans to take a position 180 billion euros ($192.6 billion) between 2023 and 2027, with greater than two thirds concentrating on “electrification and digitalization.”

The German automotive large earlier this month posted a full-year 2022 working revenue of twenty-two.5 billion euros, up 13% from the earlier 12 months, with battery and electrical car (BEV) deliveries rising 26%.

The BEV growth was pushed by a 68% spike in China, whereas the corporate additionally accomplished the landmark electrification of its plant in Chattanooga, Tennessee.

Nevertheless, total supply numbers declined by 7% to eight.3 million automobiles in 2022 and the automotive division’s internet money flows decreased to 4.8 billion euros from 8.6 billion euros in 2021.

In Tuesday’s annual report, the corporate attributed this to “a rise in working capital on account of provide chain and logistics points, particularly in the direction of the top of the 12 months,” and projected this could “largely reverse” over the course of 2023.

CEO Oliver Blume mentioned Volkswagen “set clear and impressive targets and took essential choices to streamline processes” in 2022, whereas the approaching 12 months will likely be “decisive” for executing the group’s strategic goals.

Volkswagen Group CFO and COO Arno Antlitz mentioned that the corporate’s sturdy monetary place ought to allow it to “proceed investing in electrification and digitalization” even in a “difficult financial setting.”

“We’ve rates of interest growing and the general demand is barely coming down from a buyer perspective, from a market perspective, however then again we’re nonetheless working in an setting, in an financial system, that’s characterised by [semiconductor] provide that’s nonetheless not enough,” Antlitz informed CNBC on Tuesday, including that this international scarcity of semiconductors is easing.

“Primarily based on that, we have now an order e book which is nearly 1.8 million vehicles. Primarily based on our sturdy merchandise, sturdy manufacturers and that order e book, we’re fairly assured for 2023.”

Internet money movement within the automotive division elevated to 43 billion euros by the top of 2022, fueled by the profitable IPO of luxurious model Porsche, which reported file earnings on Monday and issued an formidable long-term outlook.