Industryweek 1278 25606vw

VW to Invest $86 Billion in Factories, New Models

Sept. 16, 2011
The gigantic investment drive has been earmarked for new models, new production facilities and environmentally friendly technologies.

Volkswagen said it plans to boost investment sharply over the next five years as part of its ambitions to become the world's biggest automaker by 2018.

The company said it has earmarked 62.4 billion euros ($86.1 billion) for investment between 2012 and 2016, representing an increase of almost 21% over the preceding five-year investment plan for the period from 2011 to 2015.

The lion's share -- 49.8 billion euros, or 80% of the total -- will be invested in property, plants and equipment, with Germany accounting for more than half of that figure, VW said.

Not included in the overall figure are an additional 14 billion euros in investments by its joint ventures in China, which will be financed using those joint ventures' own funds.

Volkswagen is ramping up spending on new facilities and equipment as part of its quest to become the world's No. 1 carmaker.
The gigantic investment drive has been earmarked for new models, new production facilities and environmentally friendly technologies.

"Our priority is investment in models and clean engines," CEO Martin Winterkorn said.

In the all-important automotive division, VW will invest 32.7 billion euros in "modernizing and extending the product range" for all nine of its brands, the carmaker said.

"The main focus will be on new vehicles and successor models in almost all vehicle classes."

And in the area of powertrains, VW plans to launch more fuel-efficient and low-emission engines, with particular emphasis on the development of hybrid and electric engines.

Copyright Agence France-Presse, 2011

Popular Sponsored Recommendations

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Disruptive EV Technologies Are Driving New Supplier Realities

Sept. 20, 2023
Vehicle electrification is upending the automotive landscape, forcing suppliers to make critical strategic and operational decisions. Understand what that means for you in our...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!