Germany – The funds will be spent on new models, innovative technologies and the OEM’s global presence in its Automotive Division between 2015 and 2019. “We will continue to invest in the future to become the leading automotive group in both ecological and economic terms – with the best and most sustainable products,” commented Martin Winterkorn, chairman of the board of management, Volkswagen Aktiengesellschaft.
In the Automotive Division, investments in property, plants and equipment, investment property and intangible assets, excluding capitalised development costs (capex) will amount to €64.3 billion ($80 billion), comparable with planned expenditure for 2014 to 2018. “For us, efficiency means not least that capex in the Automotive Division will remain at the same level over the entire planning period – despite increasing demands and the additional growth we have planned,” said Winterkorn.
Around 56% of the expenditure will occur in Germany, which Winterkorn said “clearly demonstrates our commitment to our domestic plants and employees”. He added: “Our 28 German locations are the backbone of the Group – our outstandingly qualified team and highly efficient production here are a key competitive advantage, and one we intend to maintain.” Nonetheless, the OEM is also expanding its international presence.
VW will build a new Crafter plant in Poland and a new Audi factory in Mexico. The OEM also said that press shops and paintshops will be further “investment focuses”. Around 64% of capex will be spent on modernising and extending VW’s product range, including SUVs and commercial vehicles. New generations of engines will also be launched.
The VW’s joint ventures in China are not consolidated and therefore represent an additional area of investment; €22 billion will be spent on new manufacturing facilities and products.