Workers assemble Volkswagen Passat sedans at the German automaker's plant in Chattanooga.Volkswagen AG is to plow about $106 billion in its business over the next five years to fuel expansion and develop new models and technology as it tries to top Toyota as the world's sales leader.
"We will continue to invest in the future to become the leading automotive group in both ecological and economic terms - with the best and most sustainable products," said Martin Winterkorn, VW's chief executive, in a statement today in Germany.
In addition to the $106 billion, VW plans to invest $27.5 billion in its joint ventures in China to build new production facilities and products in the period from 2015 to 2019. These investments will be financed from the joint ventures' own funds, the company said.
VW already has announced it's spending $900 million on an expansion of its Chattanooga plant, where it plans to assemble a new sport utility vehicle off its CrossBlue concept in 2016. The company also plans to hire 2,000 more employees to add to the 2,400 who already work at the Enterprise South industrial park factory making the Passat sedan.