The Volkswagen Group will invest around €62.4 billion in its Automotive Division in the coming five years. This is the result of the Group’s investment planning for 2012 to 2016 discussed by the Supervisory Board on Friday. “The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world’s best automobile manufacturer in economic and ecological terms”, said Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, adding: “We shall continue to extend our innovation and technology leadership. Top of the agenda for us are investments in environmentally friendly, sustainable models and drives.”
Investments in property, plant and equipment will account for €49.8 billion. More than half of this (57 percent) will be invested in Germany alone. According to Winterkorn, the Volkswagen Group with its high level of domestic investments offers the best possible proof of Germany’s international competitiveness as a leading manufacturing location. “And this will continue to be the case in future”, he said.
Besides investments in property, plant and equipment, the total amount also includes additions to capitalized development costs of €11.6 billion and investments in financial assets of €1.0 billion net of proceeds from asset disposals. Volkswagen is laying the foundations for profitable, sustainable growth by building new production facilities, introducing new models and developing alternative drives, as well as with its modular toolkits.
