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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