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.