Vw will invest more than €62 billion up to 2016 image

Volkswagen AG is ramping up investments to more than 62 billion Euros between 2012 and 2016 to boost production capacity and launch new cars as part of its bid to overtake Toyota and General Motors to become the world’s largest automaker.

The company has already announced plans to invest (EURO) 14 billion more in China over the same period.

The supervisory board voted today to approve the spending on plants, vehicles and research and development for the carmaker’s nine brands, the Wolfsburg, Germany-based company said in a statement.

“Volkswagen is investing a record amount in forward-looking projects to achieve its goal of becoming the world’s best automobile manufacturer in economic and ecological terms,” Volkswagen Chief Executive Martin Winterkorn said Friday in a statement following a supervisory board meeting.

According to Winterkorn the focus is on environmentally friendly and sustainable cars. Expansion is planned in Russia as well as in China.

Besides investments in property, plant and equipment, the total amount also includes additions to capitalized development costs of 11.6 billion euros and investments in financial assets of 1.0 billion euros net of proceeds from asset disposals.

After a best-ever 7.2 million units in 2010, VW Group estimates that this year it will increase its sales by 5% this year.