Posts Tagged ‘vw investment’

Volkswagen Investing in Biggest Automaker Goal

German maker putting up nearly 86 billion Euros on plans.

by on Nov.24, 2014

VW CEO Martin Winterkorn said the company plans to invest nearly 86 billion Euros during the next five years into the automotive division.

The Volkswagen Group, with its sights set on becoming the world’s largest automaker by volume, has announced an ambitious invest five-year investment plan that competitors will be hard pressed to match

The VW Group plans to invest a total of 85.6 billion Euros on new models, innovative technologies and its global presence in its automotive division during the next five years, VW Chief Executive Officer Martin Winterkorn said. In addition, the VW Group’s Chinese joint ventures will invest an additional 22 billion Euros.

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Winterkorn said two-thirds of the total investment amount will flow into increasingly efficient vehicles, drives and more environmentally friendly production. This is the result of the group’s investment planning for 2015 to 2019 discussed by the VW Board Supervisory Board. (more…)

VW Investing $114 Bil in Bid for Global Sales Leadership

New products to get majority of investment.

by on Nov.22, 2013

The new investment program will see the CrossBlue concept put into production.

With a goal of becoming the world’s largest automaker in mind, Volkswagen AG plans to invest $114 billion to upgrade factories and roll out an array of new vehicles for its more than a dozen different brands.

The maker, currently third in global sales behind Japan’s Toyota Motor Co. and Detroit-based General Motors, has set a goal of being the world’s “leading” automaker by 2018, the period covered by the latest plan – which calls for an investment of 84.2 billion euros. At the same time, the maker hopes to reduce spending on property, plants and equipment by 500 million euros annually.

“We will continue to invest strongly in our innovation and technology leadership,” Chief Executive Officer Martin Winterkorn said in the statement. “This will give us extra power on our way to the top.”

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Over two-thirds of the planned investment will go into product, according to Volkswagen, perhaps no surprise considering the wide range of brands the maker has added over the years. VW’s Automotive Group now covers everything from small and economy vehicles, with the Seat and Skoda lines, to luxury and ultra-premium models, with Audi, Lamborghini and Bentley.  Since Winterkorn  took the helm in 2007, it has added Scania and MAN trucks, the Ducati motorcycle company – and completed a challenging takeover of sports car maker Porsche.


Volkswagen AG Planning $65 Billion, 3-year Investment in Auto Operations

“The man focus will be on new vehicles,” says maker.

by on Nov.23, 2012

The new Porsche Macan will be one of many new products funded by the new investment program.

Volkswagen will invest $65 billion, or €50.2 billion, over the next three years in its bid to become the world’s best-selling automotive manufacturer.

The spending spree will cover a wide range of investments – including what the maker terms “property, plant and equipment,” but it also emphasizes that “the main focus will be on new vehicles.” The dozen automotive brands operated by Volkswagen AG already market about 250 different models but the German company has already revealed plans to significantly expand that line up with everything from high-mileage Volkswagen sedans to new SUVs for the Porsche and Bentley brands.

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“This investment is the key to the Volkswagen Group’s innovation and technology leadership,” said VWAG Chairman Martin Winterkorn. “It enables us to further strengthen our competitive position and ensure that we are fit for the future.”


VW Continues U.S. Expansion

Warehouse project follows new factory opening.

by on Mar.14, 2012

The new VW warehouse will help support the production of the Americanized Passat at the maker's new Chattanooga assembly plant.

A confident Volkswagen Group of America is moving ahead with its brick and mortar expansion in the U.S. With production steadily ramping up at the maker’s new American assembly plant, the German maker will invest another $40 million to build a warehouse in Roane County, Tenn. for distributing domestic auto parts for the Chattanooga-made Passat.

The 400,000-square-foot facility is expected to open by spring 2013 and will employ up to 45 people by 2016.

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Though a relatively small investment compared to the roughly $1 billion Chattanooga plant, it underscores VW’s sharp shift in focus.  Ever since closing an older plant in Westmoreland, Pennsylvania, a quarter century ago, the maker had downplayed the U.S. market.  But company planners now see the States as essential to achieving their global growth targets – VW aiming to be the world’s largest automaker by 2018.