VW to Invest 3.6B Euro in its Wolfsburg Headquarters image

VW announced its plans to invest 3.6 billion euro by 2015 in the production site at the company’s headquarters in Wolfsburg.

The 3.6-billion euro to be spent in Wolfsburg are part of the larger 50.2-billion euro investment which VW announced last year. The money will be used for new plants, vehicles and technology for global expansion. The German automaker’s target is to take the first place in the global auto industry by 2018.

“VW’s future is increasingly being decided in China, Russia, India, the Americas and Southeast Asia,” CEO Martin Winterkorn said. “The relative importance of the markets is shifting.”

VW is already the auto market leader in China and last year the company said that its two JVs in the region will spend 9.8 billion euro for new products and manufacturing plants by 2015. VW predicts that by 2018 its annual production capacity in the Asian country will reach 4 million units.

“Volkswagen is growing, and is therefore continuing to hire in production,” said works council chief Bernd Osterloh.

The German automaker relies on growth in other markets to make up for the losses in Europe and it aims at almost doubling production capacity in the Chinese market in the following five years.

Source: 4-traders.com