By the year 2016, Volkswagen Group plans to invest around $85.8 billion into its automotive division. For the next five years, this investment will be the largest-ever in the company’s long history and will create new models, environmentally friendly technologies and new product facilities. The decision and planning were made by VW’s Supervisory Board so the company will be ready and successful for the fast-changing future.
“Volkswagen’s investment package is yet another move designed to ensure the Group is fit for the future and takes the form of high-quality investments in new, innovative products, manufacturing processes and our global locations. This safeguards jobs for the long term,” said Bernd Osterloh, Group Works Council Chairman.
Accounting for $68.5 billion of the investment will be property, plant and equipment development. According to Volkswagen’s press release, more than half of the facility investment will be put into German plants. The reasoning is VW believes Germany is a leading, international manufacturing location and its domestic investments have always been rather high. The Wolfsburg and Edmen plants will receive a large sum of the investment as these plants could be considered their home and main battle ground. Besides retooling their assembly lines in order to produce new vehicles and new powertrains, a different way of power VW facilities will also be designed. Renewable energies such as wind, solar and hydroelectric power are all going to be considered and developed in the next five years.
“The Volkswagen Group 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,” said Prof. Dr. Martin Winterkorn, CEO of Volkswagen.
Source: Volkswagen
