Volkswagen will keep up spending on new and upgraded cars in its drive to become the world’s biggest automaker by 2018, while making savings in other areas to cope with rising costs and a tough economic backdrop.
Europe’s biggest carmaker said yesterday it would invest €84.2 billion in its automotive division over the next five years. That equates to €16.8 billion a year.
While spending to meet the group’s emissions targets is up on last year’s forecast, investments in property, plant and equipment are around €500 million a year lower.
Investment in product and technologies will be unaffected, Volkswagen said, while its two joint ventures in China – the world's biggest car market and the engine of the group's recent growth – will continue to invest heavily. – (Reuters)