Volkswagen AG (VW), Europe's largest carmaker, said on Friday that it planned to invest 51.6 billion euros (71 billion U.S. dollars) in its automotive division between 2011 and 2015 as part of its bid to surpass Toyota Motor Corp. as the world's largest carmaker.
Volkswagen revealed that it would invest 41.3 billion euros of the total amount in property, plants and equipment, and more than half of this investment would be made in Germany alone. Some 27.7 billion euros would be invested on developing new vehicles and redesigning existing ones, and 10.3 billion euros would be added as capitalized development costs.
It is said that Volkswagen has significant muscle to finance its ambitious global expansion plan, with net liquidity standing at 19.6 billion euros at the end of the third quarter.
The automaker's Chinese joint ventures are not consolidated and will spend an additional 10.6 billion euros through 2015, funded fully from the cash flow generated by the Chinese joint ventures.
"The Volkswagen Group will help shape the technological turning point in key areas of the automotive industry and will continue investing in environmentally friendly technologies, efficient drives and new models," said VW chairman of the board Martin Winterkorn. "The company is systematically pursuing the goals to further increase profitability and to make VW the world's most fit- for-the-future automotive group."
Volkswagen will likely post a second straight year of record deliveries this year as it adds 70 models and is aiming to sell more than 8 million cars by 2012 and 10 million as early as 2015, three years earlier than a 2018 official target.
As part of its growth plans, Volkswagen aims to forge a European heavy-truck alliance between its Swedish Scania AB brand and MAN SE. Additionally, Volkswagen wants to complete the complex merger with Porsche SE and reap the benefits of its small-car alliance with Japanese automaker Suzuki Motor Corp.
Volkswagen revealed that it would invest 41.3 billion euros of the total amount in property, plants and equipment, and more than half of this investment would be made in Germany alone. Some 27.7 billion euros would be invested on developing new vehicles and redesigning existing ones, and 10.3 billion euros would be added as capitalized development costs.
It is said that Volkswagen has significant muscle to finance its ambitious global expansion plan, with net liquidity standing at 19.6 billion euros at the end of the third quarter.
The automaker's Chinese joint ventures are not consolidated and will spend an additional 10.6 billion euros through 2015, funded fully from the cash flow generated by the Chinese joint ventures.
"The Volkswagen Group will help shape the technological turning point in key areas of the automotive industry and will continue investing in environmentally friendly technologies, efficient drives and new models," said VW chairman of the board Martin Winterkorn. "The company is systematically pursuing the goals to further increase profitability and to make VW the world's most fit- for-the-future automotive group."
Volkswagen will likely post a second straight year of record deliveries this year as it adds 70 models and is aiming to sell more than 8 million cars by 2012 and 10 million as early as 2015, three years earlier than a 2018 official target.
As part of its growth plans, Volkswagen aims to forge a European heavy-truck alliance between its Swedish Scania AB brand and MAN SE. Additionally, Volkswagen wants to complete the complex merger with Porsche SE and reap the benefits of its small-car alliance with Japanese automaker Suzuki Motor Corp.
