VW investing €51.6 billion to overtake Toyota

The Volkswagen Group has announced that it will be investing around €51.6 billion in its Automotive Division throughout the period between 2011 and 2015. This is a clear strategy with the objective of taking over Toyota’s spot as overall sales leader.

The investments will be made in property, plant and equipment, in a total of €41.3 billion. More than half of this value (57 percent) will be invested in Germany. Volkswagen will also be investing in capitalized development, worth €10.3 billion.

“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 Aktiengesellschaft.

Most part of the €27.7 billion destined for property, plant and equipment will be invested on modernizing and extending the product range of all its brands. Volkswagen will be focusing on new vehicles, successor models and derivatives in almost all vehicle classes based on modular technology. Thanks to it the Groups expects to continue its model rollout with a view to tapping new markets and segments. VW will also be developing new generations of engines that will be launched with enhanced performance, fuel consumption and emission levels.

Another priority for the Group will be the continuous development of hybrid and electric motors.

Cross-product investments of €13.6 billion will also be part of the main strategy from Volkswagen over the next five years. The Group’s demanding quality targets and the continuous improvement in its production processes mean that the new products also require changes to be made in the press shops, paintshops and assembly facilities. A new plant in North America will begin operating in 2011. Besides production the investments will be made in areas of development, quality assurance, genuine parts supply and information technology.