Volkswagen announced today that it will invest almost 51.6 billion euros (nearly $71 billion) in its automotive division within five years as it prepares to overtake Toyota and become the No. 1 global automaker in sales and profitability by 2018.
According to the manufacturer, almost 27.7 billion euros will be invested in order to upgrade the product range of all the group's brands, which include Audi, Bentley, Porsche and Lamborghini, but also VW, Skoda and Seat volume brands.
Still, it appears that Vw wants to focus on vehicles, successor models and derivatives in almost all vehicle classes.
And you know what this means: that the customers will get more and more vehicles. Volkswagen also announced that it will invest more in developing new generations of engines with enhanced performance, fuel consumption and emission levels.
In addition, the German manufacturer will continue developing new hybrid and electric motors.
Prof. Dr. Martin Winterkorn shared that the Volkswagen Group is expected to help shape the technological turning point in different key areas of the auto industry. As such, the company has continued to invest in newer models, efficient drives, and many environment friendly technologies, he added.
Winterkorn is Volkswagen Aktiengesellschaft's Chairman of the Board. Winterkorn said that the company has systematically pursued the goals set in its Strategy 2018 in order to increase profitability even more and make the brand the most future-proof in the industry.
The investment program of the company plays an important role. Bernd Osterloh, Chairman of VW’s Group Works Council, added that the investments underlined the brand's goal of becoming the top automaker for its customers, employees, and even shareholders, considering that the investments have been targeted for these three groups.
Since the company has continued to release new, high-quality, and attractive models to its customers plus the investment in its locations, the jobs of the employees are safeguarded. Osterloh stressed that the company's shareholders are also able to profit as the company has agreed that all investments must have a payoff.