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How much debt do they have to take to make such an investment?
by singularity2001 9y ago
How much debt do they have to take to make such an investment?
- TomK32 9y agoI'm useless at reading these reports but I guess they have the liquidity: http://annualreport2016.volkswagenag.com/consolidated-financial-statements/cash-flow-statement.html http://annualreport2016.volkswagenag.com/consolidated-financ... Maybe they'll shut/slim down the combustion departments.
- foepys 9y agoMost likely not so much. They wont invest $84B in one year but rather over the next 5 or even 10 years. VW's annual R&D budget is about $14B and considering that ICE are going EoL, this should fall right within the means of normal R&D.
- bischofs 9y agoI think people are confused at how much money big conglomerates like VW and Toyota spend on power train development -- i.e. VW Group revenue yearly is around 250 Billion US dollars. In the entire group power train and vehicle development is budgeted at around 120 Billion a year, so this is just over half of that budget spread out over probably 5 years. These are not SV startups, they are enormous companies by revenue and investment (which is why they have low profits and aren't sexy to invest in )
- ghaff 9y agoVW spends a lot on R&D but it's not 50% of revenue. More like around $14 billion.
- bischofs 9y agoMany development tasks are not lumped in with "R&D", for instance an existing power train that is getting a new Fuel injection system or a transmission getting durability testing are only development. Fixed original post wording...
- deleted 9y ago[deleted]
- simonh 9y agoRevenue != Budget you can spend