Volkswagen put forth an ambitious plan to offer an electric version of each model it sells. The automaker set aside about 20 billion euros ($23 billion), but that will not be enough according CEO Herbert Diess.

“The burden for our company, such as the cost of bringing to market electric cars, will be higher than expected,” Diess said in a interview with Volkswagen's internal newsletter, obtained by Bloomberg.

“This is particularly so since some of our competitors have been making more progress.”

Diess didn't give a new figure in the interview, but did say the company needs to "reduce expenses more to be able to invest in future technology and weather crises".

Volkswagen has been working on improving its profitability since a 2016 labor pact and massive reorganization of its 12 brands. The Volkswagen brand has seen its profitability increase from 1.8 to 4.1 percent last year. But Diess said they need higher profits.

“We need higher profits to finance our future. Four percent is a minimum, 5 percent to 6 percent allow for some future investments and with 7 percent to 8 percent we’re crisis-ready.”

Source: Bloomberg (Subscription Required)