Volkswagen, has announced plans to invest Euros 180 billion ($192.6 billion) over the next five years (2023-2027) with primary focus on electrification and digitalization.

Volkswagen is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany. It was founded in 1937 and is currently the largest automaker in Europe and the second-largest in the world, after Toyota.

Earlier this month, company posted a full-year 2022 operating profit of 22.5 billion euros, up 13% from the previous year, with battery and electric vehicle (BEV) deliveries rising 26%, CNBC reported.

The BEV expansion was driven by a 68% spike in China, while the company also completed the landmark electrification of its plant in Chattanooga, Tennessee.

However, overall delivery numbers declined by 7% to 8.3 million vehicles in 2022 and the automotive division’s net cash flows decreased to 4.8 billion euros from 8.6 billion euros in 2021.

In Tuesday’s annual report, the company attributed this to “an increase in working capital due to supply chain and logistics issues, especially towards the end of the year,” and projected this should “largely reverse” over the course of 2023.

CEO Oliver Blume said Volkswagen “set clear and ambitious targets and took necessary decisions to streamline processes” in 2022, while the coming year will be “decisive” for executing the group’s strategic aims.

Volkswagen Group CFO & COO Arno Antlitz said the strong financial position should enable the company to “continue investing in electrification and digitalization” even in a “challenging economic environment.”

Volkswagen produces a wide range of vehicles, including cars, trucks, and buses, under various brands such as Volkswagen, Audi, Porsche, Bentley, Lamborghini, Bugatti, and Ducati. The company has a global presence with production facilities and subsidiaries in many countries.

Volkswagen has been involved in several controversies in recent years, including the “Dieselgate” scandal, where the company was found to have installed software in its diesel engines that cheated emissions tests. As a result, the company had to pay billions of dollars in fines and compensation to affected customers. Despite this, Volkswagen remains one of the most popular and successful automotive companies in the world.