Volkswagen AG will invest R336,3 billion over the next five years, mainly in tangible assets and development expenditure.

Volkswagen AG will invest R336,3 billion over the next five years, mainly in tangible assets and development expenditure.

About R250 billion has been earmarked for investment in the Automotive Division of the Volkswagen Group during the planning period. These investments are primarily linked to the expansion and upgrading of the product range and the modernising and realigning of manufacturing facilities.

Strong emphasis will also be placed on the significance of Germany as an industrial location. The Group's German companies will account for 68 per cent of total investment in the Automotive Division mainly due to scheduled vehicle ramp-ups in Germany for the planning period.

The investments will be focused on successor models such as the new Passat and Audi A6, as well as new models and derivatives in the Golf class and the commercial vehicles range.

There will also be an emphasis on investments in the new generation of low fuel consumption engines and gearboxes, as well as technology to comply with future exhaust emissions legislation. A further R48,5 billion will be invested in new models, drive trains and factories of the Chinese joint ventures and will financed by the joint ventures themselves.

These investments have been announced as the Volkswagen Group continues to pursue its target of increasing annual deliveries to over six million units during the next five years and strengthens its position as one of the world's largest automobile manufacturers.