VW Plans €85 Billion Spending Blitz

Martin Winterkorn

Volkswagen AG says it will invest €86 billion over the next five years on new vehicles, technology and production 56% of it in Germany.

VW's ventures in China, which will account for €22 billion of the total, will finance their spending with their own funds.

CEO Martin Winterkorn says the spending binge aims to enable the group to surpass Toyota Motor Corp. to become the world's largest company "in both ecological and economic terms."

Much of the investment will go toward expanding the group's lineup of SUVs and crossover vehicles, particularly small A-class models, and on modernizing several trucks in its light commercial vehicles.

Among the new facilities included in the budget are a Crafter van plant in Poland and a previously announced Audi carmaking facility in Mexico.