Volkswagen To Invest EUR 85.6 Bln Over Next 5 Years In Auto Opns. - Quick Facts

(RTTNews) - European car giant Volkswagen Group (VKW.L, VLKAF.PK, VOW.BE) reported investing 85.6 billion euros in new models, innovative technologies and its worldwide presence in its Automotive unit over the coming five years. Nearly two-thirds of the total investment amount would flow into increasingly efficient vehicles, drives and more environmentally friendly production, according to the company.

This is the result of the Group's investment planning for 2015 to 2019 discussed by the Supervisory Board of Volkswagen Aktiengesellschaft at its meeting on Friday. "We will continue to invest in the future to become the leading automotive group in both ecological and economic terms - with the best and most sustainable products", said Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg. He added, "Development costs will remain high in the future as a result of high innovation pressure and increasing demands on the automotive industry from CO2 legislation. As a Group, we have the expertise and financial strength to continue to extend our technology leadership and to reach our goals for 2018."

Investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs (capex) in the Automotive Division would total 64.3 billion euros across the planning horizon as a whole, on a level with the planning approved in the prior year for the period from 2014 to 2018.

Further, the plans include capitalized development costs of 21.9 billion euros and proceeds from asset disposals of 0.6 billion euros, net of investments in financial assets. Additionally, the Chinese joint ventures would invest 22.0 billion euros in new production facilities and products in the period from 2015 to 2019.