VW to Invest $86 Billion in Factories, New Models

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.

"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