German carmaker Volkswagen is to invest around €62.4billion in its automotive division over the next five years.
Around €49.8billion of this will go towards property, plant and equipment with 57 per cent to be distributed in Germany alone – investments will focus on alternative drives, new generations of diesel and petrol engines and new generations of the company’s innovative direct shift gearboxes.
At €32.7billion a large proportion will be devoted to modernising and extending the product range for all its brands. This will include a clear focus on new vehicles and successor models in almost all vehicle classes; allowing Volkswagen to continue its model rollout while tapping into new markets and segments. In addition, €17.1billion will make cross-product investments over the next five years including changes to and additional capacity in press shops, paint shops and assembly facilities. Investment activities will also continue in wind, solar and hydroelectric power.
Other areas of investment will include capitalised development costs at €11.6billion and investments in financial assets at €1billion.
According to Professor Dr Martin Winterkorn, the CEO of Volkswagen, the company is investing a record amount in forward looking projects with the goal of becoming the world’s best car manufacturer in economic and ecological terms.
