Volkswagen plans to invest 62 billion euros in the next five years

Volkswagen Group will invest EUR 62.4 billion in its automotive business in the next five years (2012-2016). The plan was submitted to the group supervisory committee for discussion and approval on September 16. Dr. Wen Deen, Chairman of the Management Board of Volkswagen Group stated: “To achieve the goal of becoming a global leader in both economic and environmental protection, Volkswagen Group will invest in a number of forward-looking projects, and the scale will set a record for the group. An investment will be given priority to the development of drive systems and environmentally-friendly models for sustainable development, and will further consolidate the Group's leading position in technology and innovation."

From 2012 to 2016, the proportion of capital expenditures of the Volkswagen Group to sales revenue will continue to remain at 6%. Of the total investment of 49.8 billion euros will be used for property, plant and equipment, of which more than half (57%) concentrated in Germany. Wen Deen said: "The Volkswagen Group's large-scale investment in Germany has fully proved Germany's leading position in the global automotive manufacturing industry and its international competitiveness. Such leadership will be maintained in the future."

In addition to investment in property, plant and equipment, the plan also includes an additional 11.6 billion euros of R&D investment and 1 billion euros of investment in financial assets (excluding net income from disposal of assets). By building new production facilities, introducing new models, developing alternative energy-driven systems and implementing modular strategies, the Volkswagen Group will lay a solid foundation for profitable growth for sustainable development.

Bernd Osterloh, Chairman of Volkswagen Group Labor Relations Committee, said: "The Volkswagen Group has ensured the Group's future development through high-quality investment in innovative products, manufacturing processes and global production bases. It also provides guarantees for long-term employment. The plan also shows that Volkswagen attaches great importance to the German location of the group." For example, the group will invest approximately 100 million euros to improve the flexibility of the body production area of ​​the Wolfsburg plant, 100 million The euro is used to improve the body production area of ​​the Emden plant. "These investments will guarantee the smooth operation of the production chains of several factories in Wolfsburg, Emden, and Zwickau. In the future, these plants will be able to flexibly adjust their products and production capacity according to market demand in order to ensure future development." Ostero said. In addition, investments in German plants will also focus on the development and production of alternative energy sources, a new generation of diesel and gasoline engines, and a new generation of direct shift gearboxes.

Volkswagen will invest 32.7 billion Euros in the property, plant and equipment of the automotive business, updating and expanding its product portfolio for all brands. The investment focuses on the development of various new models and replacement models based on modular technology and its related parts and components. This will enable the Volkswagen Group to continuously and systematically launch new products and open up new markets. In terms of powertrain, Volkswagen Group will launch a new generation of engines with better performance, fuel consumption and emissions, while advancing the development of hybrid and electric drive technologies.

In addition, Volkswagen will invest EUR 17.1 billion in cross-product investments in the next five years. In order to meet the stringent quality requirements of new products and to constantly improve the production process, Volkswagen will improve stamping, spraying and assembly plants and expand its production capacity. Investments outside the production area mainly focus on R&D, quality assurance, sales, original Spare Parts supply, and information technology.

The Volkswagen Group will also invest in the development of wind power, solar energy and hydropower to provide renewable energy for the factory.

Volkswagen’s joint venture in China is not included in the above investment plan. In the next five years, Chinese joint ventures will use their own funds to invest 14 billion euros in the construction of new production facilities and the development of new products.