Volkswagen Group lifted its mid-decade profitability goal as it hones plans to become the electric-car leader and cash in on what it expects to be a massive new revenue stream from software.
The automaker will target an 8 percent to 9 percent operating return on sales in 2025, up from 7 percent to 8 percent previously.
After wooing investors with a Tesla-style briefing in March, CEO Herbert Diess on Tuesday elaborated further on VW Group's plans to phase out combustion engines and equip cars with software systems that can update automated driving capabilities and other features over the air.
"We set ourselves a strategic target to become global market leader in electric vehicles -- and we are well on track," Diess said in a statement. "The next much more radical change is the transition toward much safer, smarter and finally autonomous cars."