“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. 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 program we have now resolved will play a significant role in this,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG.
“These investments underline Volkswagen’s goal of becoming the leading automobile manufacturer for its customers, employees and shareholders, because our investments are aimed precisely at these three groups. New, attractive and high-quality models for our customers as well as investments in our locations safeguard our colleagues’ jobs. Our shareholders also profit from this, not least because at Volkswagen we all agree that every investment must pay off,” stressed Bernd Osterloh, Chairman of VW’s Group Works Council.
The manufacturer will spend EUR 27.7 billion of the total to develop new vehicles and redesign existing ones, VW said. Money will also go to upgrade factories and equipment. The main focus will be on developing vehicles based on modular technology.
The company will also push forward the development of hybrid and electric motors in particular. The ratio of capital expenditure to sales revenue will be at a competitive level of around 6 percent on average in the period 2011 to 2015.
Chinese joint ventures are not consolidated and are therefore not included in the above figures. These companies will invest a total of EUR 10.6 billion in the period 2011 to 2015. This amount will be funded in full from the cash flow generated by the Chinese joint ventures.
Google News