Volkswagen has revealed it is expanding its focus on electric vehicles, investing billions to retool its factories.
In a call with investors and analysts on Monday, Volkswagen CEO Herbert Diess said the car company was spending €73 billion (AU$118B) to convert two German factories to support production of electric vehicles, reports news outlet Reuters.
The Volkswagen boss admitted the company was aiming to compete with electric car maker Tesla.
"Yes, it is going to be a race with Tesla,” Mr Diess said.
"They are also ramping up fast. We have more different body styles, and when it comes to an established dealership network, we should have an advantage over Tesla."
Two of Volkswagen's German factories in Emden and Hanover will be converted to produce future electric models, with the latter to manufacture models for Audi, Bentley, and Porsche – all of which are brands within the Volkswagen Group.
In July 2020, Volkswagen trademarked the 'e-Beetle' and e-Karmann' names, indicating a move towards all-electric versions of popular models was well underway.
Earlier this month, Bentley announced it was moving towards an all-electric future within ten years.