Volkswagen Group to invest €85.6 billion over five years
The Volkswagen Group will invest €85.6 billion in new models, technologies and in growing its footprint over the next five years.
Around two-thirds of the total investment amount will flow into increasingly efficient vehicles and more environmentally friendly production.
Chairman Martin Winterkorn said: “Development costs will remain high future as a result of high innovation pressure and increasing demands on the automotive industry from CO2 legislation. As a group, we have the expertise and financial strength to continue to extend our technology leadership and to reach our goals for 2018.”
Around €35 billion will be spent on facilities in Germany. “Our 28 German locations are the backbone of the group – our outstandingly qualified team and highly efficient production here are a key competitive advantage, and one we intend to maintain,” added Mr Winterkorn. “At the same time, we are also strengthening and expanding our international presence to systematically leverage market opportunities all over the world.”
The company will make investments of €23 billion to expand capacity, including in a new Crafter plant in Poland and a new Audi plant in Mexico.
The joint ventures in China will invest €22 billion in new production facilities and products from 2015 to 2019. These investments will be financed from the joint ventures’ own funds.
