Volkswagen will invest 62 billion euro in its development by 2016

The German car concern intends to invest 62.4 billion euro in its automotive subdivision during the nearest 5 years. The largest investment in the concern’s history includes all projects of new car models development and environmentally appropriate technologies, as well as investment in the further extension of production facilities.

According to Martin Wintercorn, chairman of Volkswagen board of directors, Volkswagen concern will invest the record sum in prospective projects which will enable the company to achieve its chief aim – to become the largest manufacturer of economy and environmentally-friendly cars in the world.

49.8 billion euro will be invested in fixed assets. Over a half of this sum (57%) will be invested in the German automotive industry. 11.6 billion euro will be spent for development from 2012 till 2016, the investment in financial assets will be 1 billion euro after deduction of proceeds from assets sales. Forecasted investment-sales proceeds ratio will at average be about 6% from 2012 till 2016, which is quite competitive economic efficiency index.

Joint ventures in China are not consolidated assets, so they will not be assigned with funds. These companies will invest 14 billion euro in new production facilities and products from 2012 till 2016. This money will be invested from the joint ventures’ equity.