VW Investing $120 Billion Over Next 5 Years

VW Investing $120 Billion Over Next 5 Years

CEO says despite uncertain economic environment, the company will invest in 'innovation and technology leadership to give us extra power on our way to the top.'

The Volkswagen Group (IW 1000/7), announced last Friday that over the the next five years it will pour $120 billion into creating efficient vehicles, drives and technologies, as well as environmentally friendly production.

“We will continue to invest strongly in our innovation and technology leadership, despite the uncertain economic environment,” said VW CEO Prof. Dr. Martin Winterkorn. “I am convinced that this will give us extra power on our way to the top.”

More than half of the investments in property, plant and equipment  will be made in Germany. “The amount being invested in Germany is a strong testament to the fact that our home locations will continue to play a key role in the globally positioned Group going forward”, said Winterkorn, adding: “At Volkswagen, we are clearly committed to Germany as a manufacturing and development location. At the same time, we are also stepping up our investments in the markets outside Europe so as to further increase our global presence and capability.” 

At €41.2 billion (US $55 billion), the company will spend a large proportion of the total amount to be invested in property, plant and equipment in its automotive sector. The company will extend its product range focusing on new vehicles and successor models.

In the area of powertrain production, the company will produce  new generations of engines  while continuing to develop hybrid and electric motors. 

With regard to investment in China, the company will spend €18.2 (US $25 billion) billion in new production facilities and products in the period from 2014 to 2018.

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