The company has also revealed it is still looking for a battery supplier in North America.
At the conference, Volkswagen Group CFO Frank Witter also announced a record €230.7bn ($284.4bn) in revenue, with year-on-year decreases for Volkswagen and Bentley more than made up for by increases across other brands in the portfolio.
At the Volkswagen Groups annual media conference in Berlin on March 13, the German manufacturer announced that another 16 locations around the globe are to produce battery powered vehicles by the end of 2022.
The Volkswagen Group - which owns brands Audi, Porsche and Bentley, among others - now dedicates three of its factories to producing a limited portfolio of EVs. "This is how we intend to offer the largest fleet of electric vehicles in the world". The total project is expected to cost 20 billion euros or approximately $25 billion. Volkswagen reaffirmed its backing for the technology with Mueller calling it "part of the solution", even as Toyota Motor Corp. pulls diesel cars from its lineup in Europe, the main market for the vehicles.
Unlike some of its competitors, Volkswagen isn't going entirely in on electric vehicles - for now. The Audi luxury marque is set to begin deliveries later this year of the all-electric E-Tron SUV.
Volkswagen plans to launch the first full MEB vehicle, the I.D. hatch, in 2020 as the leader for an entire I.D.
Even with the battery-supply deals, one of the largest purchasing tenders in the auto industry, Volkswagen's power-supply issues are still far from over. Producing the powerpacks itself is not in the cards. Müller added that from 2019, it plans to offer a new electric vehicle, "virtually every month". Tesla, though struggling to deliver cars on time, has invested $17.5 billion in electric auto batteries and has alluded to plans for future gigafactories. "In terms of operating profit, an operating return on sales of between 6.5% and 7.5% is anticipated". The company reiterated a target to lower that ratio to 6 percent by 2020.
Managing the technology shift requires an intense focus on maintaining profitability from Volkswagen's current lineup.
Group sales revenue also climbed to a new record in 2017 to 230.7 billion euros (285.8 billion USA dollars), up 6.2 percent from a year ago, CFO Frank Witter highlighted.
"The results of the year 2017 demonstrate, we are actively shaping the transformation of our company".