The Volkswagen group has announced a spend of around EUR62.4bn on its automotive division in the next five years and that excludes the Chinese joint ventures which are self-funded.

Spending on property, plant and equipment will account for EUR49.8bn with 57% in Germany.

Of that, EUR32.7bn (66%), will go on modernising and extending the product range of all brands. The main focus will be on new vehicles and successor models in almost all vehicle classes, which will be based on modular platforms and related components, entering new markets and segments.

New engines will be launched along with hybrid and electric powertrains.

The ratio of capital expenditure to sales revenue will average 6% from 2012 to 2016.

The outlay was discussed by the VW 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 CEO Martin Winterkorn

He said the high level of domestic investments offered "the best possible proof of Germany’s international competitiveness as a leading manufacturing location and this will continue to be the case in future”.

Around EUR100m will improve the flexibility of the body and white sections at the Wolfsburg and Emdens.

“In future, flexible manufacturing of different volumes and products will be possible at these locations, reflecting market requirements. This represents a major contribution to ensuring these three locations are fit for the future,” VW said. German plant improvements will also focus on alternative drives, new diesel and petrol engines, and new direct shift gearboxes.

Press shop, paintshop and assembly capacity increased are also planned. 

There will also be expenditure on wind, solar and hydroelectric power to supply factories with renewable energy.

The joint ventures in China will separately spend EUR14bn onn new production facilities and products in 2012 to 2016.