VW Group plans to invest nearly $65 billion in automotive division
WOLFSBURG, GERMANY (WRCB) -- The Volkswagen Group will invest €50.2 billion ($64.7 billion) in its Automotive Division in the coming three years, the company announced on Friday.
"Despite the challenging economic environment, we are investing more than ever before to reach our long-term goals", said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft's Board of Management in Wolfsburg. "This investment is the key to the Volkswagen Group's innovation and technology leadership. It enables us to further strengthen our competitive position and ensure that we are fit for the future."
More than half of this figure, about 60 percent, will be invested in Germany. "In this way, we are laying the foundations to ensure that our 27 German production facilities remain at the forefront of innovation and international competitiveness", said Winterkorn, reiterating that:
"At Volkswagen, we are committed to Germany as an industrial location."
However, that still leaves around $25 billion for investment in VW automotive properties outside of Germany, including the vehicle assembly plant in Chattanooga.
Alongside investments in property, plant and equipment, the plans also include capitalized development costs of €10.6 billion ($13.7 billion). By building new production facilities, introducing new models and developing alternative drives, as well as with its modular toolkits, Volkswagen officials believe they are laying the foundations for profitable, sustainable growth.
"Continued high levels of investment strengthen the Group's ability to face the challenges of the future – both in terms of products and production processes," said Group Works Council Chairman Bernd Osterloh. "The investment planning agreed upon also represents a clear commitment to securing jobs and employment at Volkswagen, particularly in light of the difficult conditions seen in the automotive industry."
Osterloh says that sustainability and new technologies such as hybrid technology are likewise a clear emphasis in the investment planning. "We are also investing in securing our proven flexible production network between plants. This enables flexible production of different volumes and products at our locations to meet market requirements", added Osterloh.