London (CNN Business) Volkswagen has committed to spending tens of billions of dollars as part of a dramatic shift to electric and autonomous vehicles.

The Germany carmaker said Friday that it would invest €44 billion ($50 billion) by 2023 to develop electric cars, self-driving vehicles and other new technology.

Speaking at a press conference following a meeting of the company's supervisory board, CEO Herbert Diess described the company's strategy as an "electric offensive."

Diess acknowledged that increased spending on new technology could initially harm earnings growth. The investment is roughly €10 billion ($11.4 billion) above what the company set aside for new tech in last year's budget plan.

"Volkswagen must become more efficient, more productive and more profitable in order to finance the high expenditure in the future and in order to stay competitive," Diess said during the press conference.

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