VW Planning $86.4 Billion Investment To Become World's Largest Automaker

Volkswagen plans to spend $86.4 billion (62.4 billion euros) over the next five years as it strives to become the world’s largest automaker. The money will be invested in manufacturing plants, and vehicle research and development as it attempts to outsell General Motors and Toyota.

"The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world's best automobile manufacturer," Martin Winterkorn, CEO of Volkswagen, said in a statement.

Volkswagen’s 20-member board approved the spending today. All nine of VW’s brands will benefit from the plan, which ends in 2016.

"Top of the agenda for us are investments in environmentally friendly, sustainable models and drives," said Winterkorn, in the statement, issued after the board meeting.

Volkswagen also plans to invest another $19.3 billion (14 billion euros) in its Chinese joint ventures, Shanghai-Volkswagen Automotive and FAW-Volkswagen Automotive, during the same time period. The German automaker previously announced its plans to build two more manufacturing plants (for a total of 11) in China.

At the Frankfurt Motor Show this week, Winterkorn said that Volkswagen could sell more than 2.4 million cars in China this year. "We're rather undersupplied there," said the CEO. The automaker sold 7.2 million vehicles last year and says it could sell five percent more this year.

Source: Automotive News (Subscription required)

Robert
It's never good when car companies push for number 1 instead of growing sales naturally with good products. Seems the extra money will go to develop small cheap cars and green technology. But VW also said they will build cars with lower cost to raise sales. That sounds promising! That's usually achieved with lesser technology. Toyota tried it and all they got was a ruined reputation for reliability. Their core competency and the reason why people bought them.
rigo
i meant to put number 1.
rigo
if being number is what VW wants then they gotta work on reliability on almost all thier brands. audis are nice as hell to be in and look at but i wouldn't trust one after 5 years. and the same goes for VWs. and because there german, even if its old, when it needs fixing its like fixing a new one.

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