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The bulk of the money will be spent on property, plant and equipment, with the main focus centering around brand new vehicles, successor models and derivatives in almost all vehicle classes based on modular technology. Volkswagen claims that this should help with new vehicle development, with the end goal being to tap new markets and segments.
In powertrain production, new generations of engines will be launched with enhanced performance, fuel consumption and emission levels. The company has highlighted that it will continue driving forward the development of hybrid and electric powertrains in particular.
But it’s not just about new models and technologies. Volkswagen also plans to invest in improvements to its manufacturing facilities to help meet tough new quality targets, all of which should result in better quality and more reliable cars.
Not surprisingly, more than half--57 percent--of this investment will be spent in Germany, Volkswagen’s home market. However, a new plant is also being built in North America and you can bet there will be significant further investment spent here too.