Volkswagen plans to invest $71 billion to become number one global automaker

Volkswagen is planning a range of investments adding up to nearly $71 billion USD in an attempt to overtake Toyota as the number one global automaker in sales and profitability.

Most of that money, about $37.7 billion in fact, will be spend on improving and expanding the lineup of every brand in the Volkswagen Group. The extensive list of VW Group’s brands is made up of Skoda, SEAT, Audi, Bentley, Porsche, Lamborghini, Bugatti, and of course, Volkswagen. This investment will help enter new market segments and create powertrains with improved performance, low emissions and enhanced fuel consumption, as well as fund the successors to all the current models.

So what about the rest of the money? $18.5 billion will be going towards cross-product investments, while $14 billion goes to “additions to capitalized investment costs.”

However, the $71 billion figure does not include an additional $14.4 billion going towards joint ventures in China with First Automobile Works and Shanghai Automobile Industry Corporation. These joint ventures will help boost the company’s production volume in the Chinese market. Expanded volume is also planned in Russia, and a new production plant is opening next year in Chattanooga, Tennessee.

The company’s goal is to reach 8 million sales worldwide by 2012, and 10 milion by 2015.

Source: Automotive News – sub. req.

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