Volkswagen Invests to Be The Best
In Frankfurt, Martin Winterkorn, CEO of The Volkswagen Group, announced today that VW would invest 62.4 billion Euros ($86 billion) in new plants, new product and research and development. The announcement was reported in Bloomberg, Reuters and Automotive News and other media.
Volkswagen’s board approved the spending for nine brands including Audi, VW, Bentley, Skoda and SEAT.
Many car companies has improved the environmental impact of their manufacturing processes and of their powertrains and models. Winterkorn noted that the company would focus on creating environmentally friendly, sustainable models. Volkswagen set environmental goals for the company as early as 1996.
Volkswagen opened its plant in Chattanooga last April to build its mid-size Sedan, the Passat for the U.S. market. It also plans expansion in Russia.
Shanghai-Volkswagen Automotive and FAW-Volkswagen Automotive, joint ventures in China with VW, will invest an additional 14 billion euros through 2016. VW is the largest foreign automaker in China. It has had a presence in China since 1978 and formed its first joint venture with Shanghai-Volkswagen Automotive Co., Ltd. In 1984 and its second joint venture with FAW-Volkswagen Automotive in 1991 in Changchun.
Winterkorn told reporters that Volkswagen could sell more than 2.4 million vehicles in China in 2011. Plans for additional plants in China are underway.
The company forecasts a 5% increase in global sales over the 7.2 million vehicles sold in 2010.
Volkswagen's stock has positively reacted to the news. VOW now trades at $104.30 and is up 2.25 percent from yesterday's close.