{"id":85625,"date":"2014-11-24T11:19:47","date_gmt":"2014-11-24T16:19:47","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=85625"},"modified":"2014-11-24T11:19:48","modified_gmt":"2014-11-24T16:19:48","slug":"volkswagen-investing-in-biggest-automaker-goal","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2014\/11\/volkswagen-investing-in-biggest-automaker-goal\/","title":{"rendered":"Volkswagen Investing in Biggest Automaker Goal"},"content":{"rendered":"
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VW CEO Martin Winterkorn said the company plans to invest nearly 86 billion Euros during the next five years into the automotive division.<\/figcaption><\/figure>\n

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<\/p>\n

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.<\/p>\n

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The Leader in Global Automotive News!<\/figcaption><\/figure>\n

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\u2019s investment planning for 2015 to 2019 discussed by the VW Board Supervisory Board.<\/p>\n

\u201cWe will continue to invest in the future to become the leading automotive group in both ecological and economic terms \u2013 with the best and most sustainable products,\u201d Winterkorn said in a statement.<\/p>\n

\u201cDevelopment costs will remain high in the future as a result of high innovation pressure and increasing demands on the automotive industry from (carbon dioxide) legislation. As a group, we have the expertise and financial strength to continue to extend our technology leadership and to reach our goals for 2018.\u201d<\/p>\n

Winterkorn said that capital investment in the automotive division will remain at the same level over the entire planning period \u2013 despite increasing demands and the additional growth planned by the automaker.<\/p>\n

In addition to spending on capital investment, the plans also include capitalized development costs of 21.9 billion euros and proceeds from asset disposals of $600 million euros, net of investments in financial assets. The development costs include upfront investments in connection with complying with environmental requirements and in expanding and upgrading the model portfolio.<\/p>\n

More than half of the capital investment will be in Germany.<\/p>\n

\u201cThis investment program once again clearly demonstrates our commitment to our domestic plants and employees. Our 28 German locations are the backbone of the group \u2013 our outstandingly qualified team and highly efficient production here are a key competitive advantage, and one we intend to maintain,\u201d said Winterkorn.<\/p>\n

\u201cAt the same time, we are also strengthening and expanding our international presence to systematically leverage market opportunities all over the world.\u201d<\/p>\n

(Volkswagen Golf gets new HyMotion fuel-cell drive option. For more, <\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

\u201cThe planned investment amount shows that Volkswagen is continuing to invest substantially in its global locations \u2013 and consequently in the almost 600,000 jobs around the world. At the same time, this planning round again clearly demonstrates Volkswagen\u2019s commitment to Germany as a business location, which certainly distinguishes the Company from other competitors,” said Bernd Osterloh, chairman of Volkswagen\u2019s Group Works Council.<\/p>\n

Winterkorn said VW’s main focus will be on expanding the SUV range \u2013 in particular in the A\/A0 class \u2013 as well as on modernizing part of the light commercial vehicle portfolio.<\/p>\n

(<\/em>Click Here<\/a><\/span>\u00a0for details about GM’s $1 billion investment plans.)<\/em><\/strong><\/p>\n

At the same time, investments are also planned in new vehicles and successor models in almost all vehicle classes, which will be based on the modular toolkit technology and related components. This will allow the Volkswagen Group to systematically continue its model rollout with a view to tapping new markets and segments, he said.<\/p>\n

In the area of powertrain production, new generations of engines will be launched offering additional enhancements to performance, fuel consumption and emission levels. The Group will also continue to press ahead with the development of hybrid and electric drives.<\/p>\n

In addition, the company will make cross-product investments of 23 billion euros over the next five years.<\/p>\n

(To see more about a possible Tesla-BMW collaboration, <\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

The investments include spending to expand capacity, a new Crafter plant in Poland and the new Audi plant in Mexico. Other investment focuses are press shops and paint shops, reflecting the Company\u2019s high quality targets and the continuous improvement of its production processes.<\/p>\n

The joint ventures in China are not consolidated and are therefore not included in the above figures. They will invest a total of 22 billion euros in new production facilities and products in the period from 2015 to 2019. These investments will be financed from the joint ventures\u2019 own funds.<\/p>\n","protected":false},"excerpt":{"rendered":"

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. VW plans to invest 85.6 billion Euros on new models and innovative technologies. For more, go to TheDetroitBureau.com.<\/p>\n","protected":false},"author":20009,"featured_media":4911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/85625"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=85625"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/85625\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/4911"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=85625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=85625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=85625"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=85625"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=85625"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=85625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}