Volkswagen to invest $29.55 billion between 2010 and 2012

2010 Volkswagen Golf R

Volkswagen AG is planning to invest an automotive capital expenditure of around 19.9 billion euros ($29.55 billion) between 2010 and 2012. The German automaker said that an estimated 13.3 billion euros of the total investment will go into property, plant and equipment and will help modernize and expand the company’s product range.

“In the area of powertrains, new engine generations will be introduced that offer additional improvements in performance, consumption and emissions. Automatic gearbox capacity will be aligned with growing demand,” Volkswagen said in a statement. “Because of the high quality and cost targets, the new products require modifications to press and paint shops as well as assembly facilities. Outside manufacturing, investments are planned mainly in the areas of development, quality assurance, genuine parts supply and IT.”

The other 6.6 billion euros will be investing in “cross-product technologies” in the coming three years.

This investment does not include another 4.4 billion euro earmarked over the same period at its two Chinese joint ventures.

– By: Stephen Calogera

Source: Reuters