The Volkswagen Group will spend EUR50.2bn on its automotive division in the next three years, it said in a statement following a supervisory board meeting on Friday.
The planning also includes the newly consolidated MAN and Porsche brands.
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“Despite the challenging economic environment, we are investing more than ever before to reach our long-term goals”, said management board chairman Martin Winterkorn.
Spending on property, plant and equipment will account for EUR39.2bn with 60% of that in Germany.
The ratio of investments in property, plant and equipment (capex) to sales revenue will be at a competitive 6-7% in the three-year period.
The plans also include capitalised development costs of EUR10.6bn.
EUR24.7bn (63%) will be spent modernising and extending the product range for all brands, including a new generation of MAN trucks.
EUR14.5bn includes the new Audi plant in Mexico, expansion of Porsche’s Leipzig plant and increased production of automatic gearboxes.
Separately, the Chinese JV companies will spend EUR9.8bn on new production facilities and products in the same period.
