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Volkswagen to invest €51.6bn over next five years

New plant in North America to open in 2011

The Volkswagen Group plans to invest around €51.6bn in its Automotive Division in the coming five years.

Volkswagen said that more than half of this (57%) will be invested in Germany alone, besides investments in property, plant and equipment (€41.3bn), the total amount includes additions to capitalized development costs of €10.3bn.

At €27.7bn, the group will spend most of the total amount to be invested in property, plant and equipment in the automotive division on modernizing and extending the product range of all its brands.

In addition, Volkswagen will make cross-product investments of €13.6bn over the next five years.

The company said that the new plant in North America will begin operating in 2011 and beyond production, investments are planned mainly in the areas of development, quality assurance, genuine parts supply and information technology.

Volkswagen Aktiengesellschaft chairman of the board of management Martin Winterkorn said, the company will help shape the technological turning point in key areas of the automotive industry and, to do this, will continue investing in environmentally friendly technologies, efficient drives and new models.