Wolfsburg, Germany (4E) – Volkswagen said it is allocating 50.2bn euros ($65.2bn) for investment until 2015, according to a statement released on Friday.
The German auto maker’s supervisory board approved the funding plans that included spending for research and development, factories and vehicles. Another 9.8bn euros worth of investment will come from the company’s joint ventures in China, which are not consolidated.
Volkswagen chief executive Martin Winterkorn said on Friday that the company is investing in record levels to attain its long-term goals despite the challenges in the economic climate.
About 39.2bn euros ($50.9bn) will be invested in plants, property and equipment, with 60 per cent of the amount to be spent in Germany.
This year, VW added Porsche and Ducati brands to its stable and its 20 per cent 10-month growth in China has offset its 0.6 per cent decline in deliveries within Europe.
The Wolfsburg, Germany-based company is planning to spend 14.5bn euros ($18.8bn) to boost manufacturing capacity of its product lines like its Audi facility in Mexico and its Leipzig plant that produces the Porsche Macan SUV model.
Since the crisis that hit the European auto market in 2009, VW has used a three-year investment timetable in favor of its previous five-year program as forecasting became harder.