By Kim Richters 
 

Volkswagen AG on Tuesday raised its 2025 target for operating return on sales, saying the combustion-engines business would help finance and hasten the ramp-up of battery-electric vehicles.

The German car maker said it is now targeting an operating return on sales in 2025 of 8% to 9%, compared with a previous goal of 7% to 8%.

Volkswagen's updated guidance for 2025 comes as the car maker presents a new strategy through 2030, detailing its electrification plans for the next years.

"A disciplined ramp-up driven by synergies from lower battery and factory costs and increasing scale is expected to improve BEV margins," said the car maker, while "a robust-margin ICE business" should generate strong cashflows to help the electric shift.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

July 13, 2021 07:55 ET (11:55 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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