Volkwagen to make bulky investment of 51. 6 Billion in 5 years

Supervisory Board of Volkswagen Aktingesellschaft, today informed CarDekho.com that they would be investing around 51.6 Billion Euros in upcoming 5 years for its Automotive Division. Total amount of 41.3 Billion Euros will be invested for property, plant and equipments purposes. Around 57% of this amounted in Germany itself. Apart from investment in property, plant and equipments the amount also adds the capitalized development cost of 10.3 billion Euros which Volkswagen is planning to invest between 2011-2015.

Published On Nov 20, 2010 20:04 IST

Published OnNov 20, 2010 20:04 IST

Last Updated OnNov 20, 2010 20:04 IST

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Prof. Dr. Martin Winterkorn, Chairman of the Board of the Management of Volkswagen Aktingesellschaft stated that the company will continue investing in envioronment friendly technologies, efficient drives and new models to improve the key areas of Volkswagen group. He added that they are proceeding in a systematical and planned directions for their 2018 Strategy in order to make Volkswagen as a future proof automobile group.

Bernd Osterloh commented that these investments will help to become the leading manufacturing company for its customers, employees and shareholders.

Volkswagen will be investing the total amount of 27.7 Billion Euros for property, plant and equipment purposes in the Automotive Division on moderning and increasing its product range for all its brands .Volkwagen will be focusing on production of new vehicles, upgraded model and derivatives in almost all vehicle classes based on modular technology. This will enable Volkswagen to rollout its models analytically in parallel to new markets and segments.

Moreover, Volkswagen would be investing 13.6 billion Euros for cross-products in next 5 years. The new plant of volkswagen will start operating by 2011. Apart from production, Volkswagen has planned investments for development, quality assuarance, geniune parts supply and information technology. Volkswagen is looking ahead for the production of hybrid and electric as the demand of these cars seems rising rapidly with the hike in the fuel prices. Along with fuel efficiency Volkswagen is forecastic about the envioronment friendly measures to make a significant contribution in social perseptives. The company expects the ratio of capital expenditure to sales revenue to be at a competetive level of 6 percent on an average between 2011 to 2015.

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Meenal

Meenal has been a writer since the time she knew what it is to write. Being a team lead at CarDekho, she guides her team to bring in fresh ideas and true stories to develop a brain storming news for the car enthusiasts across the world. Meenal started writing during her school and is continuing still. Being a post graduate in English Literature with Linguistics, Phonetics, and Grammar as her favorites, she topped throughout. And perhaps that's what helped her starting her career directly as an Editor with international clients from the very beginning. She also has been trained in and has got experience in pre-editing and master-editing journals and books. With almost 5 years of experience in journalism behind her, she still believes that she gets to learn new things about writing news every new day. She plans to start on another degree in psychology. Future plans for her include nothing more than a dynamic GROWTH for herself and SMILES on the readers' faces.Read more

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