Volkswagen AG, in a statement on its Website, says that it plans to invest EUR51.6 billion (about $61.5 billion) in its worldwide automotive operations over the next five years.
For its Chinese operations, VW plans to invest CNY96 billion ($14.06 billion) before 2015. Such an investment is meant to maintain VW's position as China's biggest international automaker and is one step in its goal to be the world's biggest automaker by 2018.
The funds for the investment in China, which are not part of the VW's global total, will be derived from the cash flow generated by VW's Chinese joint ventures.
J.D. Power and Associates states that, in the first nine months of 2010, VW's group sales in China totaled 1.4 million units, compared to General Motor Co.'s sales of 798,000. While VW's statement did not elaborate on its proposed China investment, VW has already unveiled several projects.
In 2010, VW drafted a four-year, EUR6 billion plan to build two new Chinese assembly plants, to double its production to 3 million units and to add new models.
VW is presently China's best-selling brand and Audi is China's most popular luxury brand. VW is also beginning to build its Skoda cars in China.
Skoda's CEO Winfried Vahland recently told a Skoda union newsletter that he aims to raise annual China production to 500,000 units, up from 131,800 units in 2009. VW presently maintains two joint ventures with the FAW Group and Shanghai Automotive Industry Corp. [via autonews - sub. required]