While some automakers are still reeling from the affects of the recent global financial crisis, and others resorting to drastic measures to raise needed capital
, the juggernaut that is the Volkswagen Group seems to only be going from strength to strength. The company has announced today that it plans to invest a whopping $70.5 billion over the next five years in order to make it the world’s most future-proof automotive group.
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.