Volkswagen Group will invest 50.2 billion euros ($62.3 billion) in its automotive division within the next three years in order to accelerate growth.
The company’s three-year investment strategy from 2013 to 2015 is 24 months shorter than VW’s usual five-year planning cycle. This shows Volkswagen’s cautious approach to the uncertain European market.
VW Group CEO Martin Winterkorn said the company is spending more than ever to achieve its long-term goals, despite the economic challenges in Europe. “This investment is the key to 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,” Winterkorn said.
Of the total 50.2 billion euros, 39.2 billion euros ($48.6 billion) represents investment in property, plants and equipment, with 60 percent of that figure ($29.2 billion) destined for the group’s 27 German production facilities.
The company’s profitable and sustainable growth depends on strong investment and a focus on production versatility, VW Group works council chairman Bernd Osterloh said. “We are 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”, Osterloh said.
The investment plan also includes continued development of new-generation engines – including hybrid and electric motors – with a focus on performance enhancements and reduced fuel consumption and emissions.