Volkswagen continues to win over the world market. The company is prepared to invest 62 billion euros, or approximately $86 billion. The money will be spent mainly on upgrading German production plants and range expansion. Volkswagen intends to outrun the global automotive industry leader Toyota Motor and General Motors.
This was announced on Euronews by the company CEO Martin Winterkorn. He said that the automotive industry in the past year continued its recovery, and it was a brilliant recovery. He added that his company has proven reliable in a crisis and was able to hold its position. During 7 months of this year, sales of Volkswagen cars in the world rose by 14.5%.
It is reported that 50 billion euros will be invested in production development and upgrading of the facilities. Nearly half of this amount will be allocated for the modernization of German factories of the automaker. The widespread introduction of modular solutions and clean technologies should significantly change the range of the company. The company leadership is confident that it will also allow expansion of the company's presence into the new market sectors.
The automaker will also invest in its foreign operations. The main volume of foreign investments will be directed to the Chinese market. In 2016, 14 billion euros will be invested. These funds will be allocated to the already existing joint ventures and construction of two new ones.
It is planned to support the financial plans to expand production in Eastern Europe and Russia. At the moment, Volkswagen has one production plant in Russia, Kaluga region. The Russian factory has recently reached its design capacity and is working in three shifts, which ensures production of 150 thousand cars per year.
According to "Avtostat", in 2011 the plant produced over 120 thousand vehicles against 95,000 in 2010. The automaker will invest $100 million in a new Russian plant. Volkswagen also announced plans to increase the use of different types of renewable energy: solar and wind power. However, it is clear that the development of green and eco-friendly models is supported by the company as a global trend.
Volkswagen estimated the increase in sales in 2011 at approximately 5% above the record of 2010, when over seven million cars were sold.
The leadership group intends to normalize the relations with their Japanese counterparts. Recently, representatives of Suzuki that forms an alliance with Volkswagen announced their intention to terminate this partnership. The Japanese believe that German leaders violated the agreement by reaching a supply agreement for diesel engines with the Italian Fiat. Suzuki President Osamu Suzuki announced his plans to buy 19.9% shares of the Japanese company owned by Volkswagen. However, the Germans officially refused to sell the shares.
On September 19, Autonews, referring to one of the senior managers of the German automaker, announced that Volkswagen management is considering purchasing Suzuki. "We do not rule out such a possibility," Autonews quoted the top manager.