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Publish Date : 24-Nov-2014

The Volkswagen Group will invest a total of EUR 85.6 billion in new models, innovative technologies and its global presence in its Automotive Division over the coming five years. Around 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’s investment planning for 2015 to 2019 discussed by the Supervisory Board of Volkswagen Aktiengesellschaft at its meeting on Friday. “We will continue to invest in the future to become the leading automotive group in both ecological and economic terms – with the best and most sustainable products”, said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg. “Development costs will remain high in the future as a result of high innovation pressure and increasing demands on the automotive industry from CO2 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.”

Investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs (capex) in the Automotive Division will amount to EUR 64.3 billion across the planning horizon as a whole, on a level with the planning approved in the previous year for the period from 2014 to 2018. “For us, efficiency means not least that capex in the Automotive Division will remain at the same level over the entire planning period – despite increasing demands and the additional growth we have planned”, said Winterkorn. The capex ratio will be at a competitive level of between six and seven percent in the period from 2015 to 2019.

In addition to spending on capex, the plans also include capitalized development costs of EUR 21.9 billion and proceeds from asset disposals of EUR 0.6 billion, net of investments in financial assets. The capitalized development costs include upfront investments in connection with complying with environmental requirements and in expanding and upgrading the model portfolio. More than half of the capex spending (around 56 percent) will be made in Germany. “This investment program once again clearly demonstrates our commitment to our domestic plants and employees. Our 28 German locations are the backbone of the Group – our outstandingly qualified team and highly efficient production here are a key competitive advantage, and one we intend to maintain”, said Winterkorn. “At the same time, we are also strengthening and expanding our international presence to systematically leverage market opportunities all over the world.”

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