Volkswagen to Spend $86 Billion to Become World's Largest Automaker
After Volkswagen found themselves briefly at the top of the industry during Toyota’s recall fiasco, it seems that they’ve grown fond of the achievement and aim to legitimately take over the top spot in the future.
Volkswagen will invest 62.4 billion Euros ($86 billion) across a five year span for this endeavor. According to CEO Martin Winterkorn, “The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world’s best automobile manufacturer… Top of the agenda for us are investments in environmentally friendly, sustainable models and drives.”
On top of the 62.4 billion investment, another 14 billion Euros will be invested through 2016 exclusively for VW’s Chinese ventures– Shanghai-Volkswagen Automotive and FAW-Volkswagen Automotive. The investment is intended to add at least two more manufacturing plants in China.
As Volkswagen projects their growth in China to reach 2.4 million units sold, Winterkorn wants to make sure that Volkswagen will have the facility to meet demand.
Moreover, Volkswagen has recently opened a plant in Chattanooga, Tennessee specifically designed to accommodate an American Market specific Volkswagen Passat.
The needs for Russian expansion are recognized as well.