Volkswagen Group is to invest around EUR51.6bn (US$70.6m) in its Automotive Division during the next five years.
Investments in property, plant and equipment will account for EUR41.3bn with more than half – 57% – invested in Germany.
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As well as investments in property, plant and equipment, this total amount includes additions to capitalised development costs of EUR10.3bn.
“The Volkswagen Group will help shape the technological turning point in key areas of the automotive industry and, to do this, will continue investing in environmentally friendly technologies, efficient drives and new models,” said VW chairman of the board Martin Winterkorn.
“We are systematically pursuing the goals of our Strategy 2018 to further increase our profitability and to make Volkswagen the world’s most future-proof automotive group. The investment programme we have now resolved will play a significant role in this.”
VW adds its main focus will be on new vehicles, successor models and derivatives in almost all vehicle classes based on modular technology.
In powertrain production, new generations of engines will be launched with enhanced performance, fuel consumption and emission levels, while the Group will continue development of hybrid and electric motors in particular.
In addition, Volkswagen will make cross-product investments of EUR13.6bn during the next five years.
Changes will also be made in the press shops, paintshops and assembly facilities and the new plant in North America will begin operating in 2011.
Beyond production, investments are planned mainly in the areas of development, quality assurance, genuine parts supply and information technology.
The ratio of capital expenditure to sales revenue will be at a level of around 6% on average in the period 2011 to 2015.
The China joint ventures are not consolidated and are therefore not included in the figures.
These companies will invest a total of EUR10.6bn in the period 2011 to 2015, funded in full from the cash flow generated by the Chinese joint ventures.
