GERMANY: Volkswagen to cut capital spending over next five years - report
Volkswagen said on Friday it would cut capital spending over the next five years by 11%, although its investment levels will remain higher than industry peers, Reuters reported.
The new agency said the budget cut means VW will spend nearly €31 billion ($US37 billion) in its core automotive unit over the period, with the lion's share going towards expanding its range of cars and light trucks.
"The focus is on successor models such as the new Passat and Audi A6 as well as new models and derivatives in the Golf class and in the commercial vehicles range," VW reportedly said in a statement.
Reuters noted that VW is renowned for having one of the highest levels of expenditure in the industry particularly after investing in luxury brands such as Bugatti, Bentley and Lamborghini at the expense of the group's core mass market business.
VW, which has signalled a tighter rein on spending under new finance chief Hans Dieter Poetsch, said its average investment ratio over the coming five years would be 6.2% of sales, the report added, noting that represents a 0.7% point improvement over the last planning round and below levels of 8% or 9% over the past few years, though still higher than rivals.