Volkswagen Takes Aim at Top Spot
AF News Desk
09-19-2011, 09:56 AM
In an effort to leap-frog their competition in the next few years, Volkswagen looks to invest a substantial amount of money in becoming the top auto manufacturer in the land, they announced at this year’s Frankfurt Auto Show.
The announcement comes on the heels of the auto group’s (Volkswagen Auto Group – VAG) announcement of a projected increase in global deliveries.
The story from AutoNews (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110916/OEM/309169876/1198
):
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/5/7/1241654219324/The-Volkswagen-Company-lo-001.jpg
Note: Photo not associated with original story. Photo via The Guardian.
VW to invest $86 billion in bid to become No. 1
Spending will be for plants, new models, r&d
Volkswagen will invest 62.4 billion euros ($86 billion) over the next five years as it seeks to supplant General Motors Co. and Toyota Motor Corp. at the top of the industry.
"The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world's best automobile manufacturer," CEO Martin Winterkorn said in a statement.
VW's 20-member board today approved the spending on plants, vehicles and research and development for VW's nine brands, including Audi, Skoda, Seat, Bentley and the core VW marque, from 2012 through 2016.
"Top of the agenda for us are investments in environmentally friendly, sustainable models and drives," Winterkorn said in the statement, issued after the board meeting.
The carmaker's Chinese joint ventures, Shanghai-Volkswagen Automotive and FAW-Volkswagen Automotive, which are not consolidated, will invest an additional 14 billion euros through 2016.
Previously, Europe's largest automaker planned to invest a combined 61.6 billion euros in the five-year period ending in 2015 (51.6 billion euros outside China and 10 billion euros in China).
VW has already announced plans to add two more Chinese production facilities, bringing its total to 11. Winterkorn said earlier this week that VW, which operates 62 factories globally, is mulling additional plants in China.
Volkswagen could sell more than 2.4 million vehicles in China this year, the CEO told reporters at the Frankfurt auto show this week. "We're rather undersupplied there," he said.
The company has forecast a 5 percent increase in global deliveries this year after selling a record 7.2 million cars, SUVs and vans in 2010.
VW also opened a plant in Chattanooga, Tennessee, in April to supply the United States with a mid-sized sedan specifically developed for the world's second-largest car market.
VW is also expanding capacity in Russia.
VW suffered two major setbacks in the past week in its expansion efforts as a merger with Porsche Automobil Holding SE planned for this year was delayed and Suzuki Motor Corp. said it wants to dissolve its 20-month-old alliance.
Reuters, Bloomberg and Douglas A. Bolduc contributed to this report.
[ [ [ [ [ [ [ [ OUR VIEW ] ] ] ] ] ] ] ]
Nothing says “striking while the iron is hot,” like a reported $86 billion worth of investment. Despite their issues with Suzuki and Porsche, Volkswagen seems to have the desire to become the top manufacturer. The question now is, do they have the tools to do so?
What do you all think? Does Volkswagen have what it takes to overtake the likes of GM and Toyota?
The announcement comes on the heels of the auto group’s (Volkswagen Auto Group – VAG) announcement of a projected increase in global deliveries.
The story from AutoNews (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110916/OEM/309169876/1198
):
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/5/7/1241654219324/The-Volkswagen-Company-lo-001.jpg
Note: Photo not associated with original story. Photo via The Guardian.
VW to invest $86 billion in bid to become No. 1
Spending will be for plants, new models, r&d
Volkswagen will invest 62.4 billion euros ($86 billion) over the next five years as it seeks to supplant General Motors Co. and Toyota Motor Corp. at the top of the industry.
"The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world's best automobile manufacturer," CEO Martin Winterkorn said in a statement.
VW's 20-member board today approved the spending on plants, vehicles and research and development for VW's nine brands, including Audi, Skoda, Seat, Bentley and the core VW marque, from 2012 through 2016.
"Top of the agenda for us are investments in environmentally friendly, sustainable models and drives," Winterkorn said in the statement, issued after the board meeting.
The carmaker's Chinese joint ventures, Shanghai-Volkswagen Automotive and FAW-Volkswagen Automotive, which are not consolidated, will invest an additional 14 billion euros through 2016.
Previously, Europe's largest automaker planned to invest a combined 61.6 billion euros in the five-year period ending in 2015 (51.6 billion euros outside China and 10 billion euros in China).
VW has already announced plans to add two more Chinese production facilities, bringing its total to 11. Winterkorn said earlier this week that VW, which operates 62 factories globally, is mulling additional plants in China.
Volkswagen could sell more than 2.4 million vehicles in China this year, the CEO told reporters at the Frankfurt auto show this week. "We're rather undersupplied there," he said.
The company has forecast a 5 percent increase in global deliveries this year after selling a record 7.2 million cars, SUVs and vans in 2010.
VW also opened a plant in Chattanooga, Tennessee, in April to supply the United States with a mid-sized sedan specifically developed for the world's second-largest car market.
VW is also expanding capacity in Russia.
VW suffered two major setbacks in the past week in its expansion efforts as a merger with Porsche Automobil Holding SE planned for this year was delayed and Suzuki Motor Corp. said it wants to dissolve its 20-month-old alliance.
Reuters, Bloomberg and Douglas A. Bolduc contributed to this report.
[ [ [ [ [ [ [ [ OUR VIEW ] ] ] ] ] ] ] ]
Nothing says “striking while the iron is hot,” like a reported $86 billion worth of investment. Despite their issues with Suzuki and Porsche, Volkswagen seems to have the desire to become the top manufacturer. The question now is, do they have the tools to do so?
What do you all think? Does Volkswagen have what it takes to overtake the likes of GM and Toyota?
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