Volkswagen announced plans to invest nearly $200 billion over the next five years, more than two-thirds of that in electrification and digitalization.

Though it turned a profit last year and its battery electric vehicle sales rose 26%, making up a record 7% of total sales, its overall deliveries fell 7% to 8.3 million units.

The auto division’s net cash flow fell, which it blamed on greater working capital resulting from supply chain and logistics issues.

Volkswagen plans to release new BEV models this year and focus growth efforts in China and North America.

"FY22 has impressively demonstrated the robustness of our business model,” said VW Group CFO and COO Arno Antlitz in a statement about its plans.

“Under challenging conditions, we delivered 572,1 00 BEVs and increased our overall revenues and operating profits. FY23 will be no less challenging in view of the overall economic developments. Nevertheless, our strong brands, with their convincing product offerings and the order backlog of around 1.8 million vehicles allow us to look ahead to FY23 with confidence.”

DIG DEEPER: Volkswagen AG Forecasts 2023 Sales Jump