Volkswagen Group Strengthens Competitiveness and Safeguards

Volkswagen Group Strengthens Competitiveness and Safeguards Future
With Continued High Investment Levels 
WOLFSBURG, GERMANY -- (Marketwire) -- 11/26/12 -- 

--  EUR 50 billion for new models, environmentally friendly technologies
    and production facilities in the coming three years
--  CEO Winterkorn: "We are investing more than ever before to reach our
    long-term goals."

The Volkswagen Group will invest EUR 50.2 billion in its Automotive
Division in the coming three years. This is the result of the Group's
investment planning for 2013 to 2015 discussed by the Supervisory
Board of Volkswagen Aktiengesellschaft at its meeting on Friday. For
the first time, the planning also includes the newly consolidated MAN
and Porsche brands. "Despite the challenging economic environment, we
are investing more than ever before to reach our long-term goals,"
said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen
Aktiengesellschaft's Board of Management in Wolfsburg. "This
investment is the key to the Volkswagen Group's innovation and
technology leadership. It enables us to further strengthen our
competitive position and ensure that we are fit for the future."  
Investments in property, plant and equipment will account for EUR
39.2 billion. More than half of this figure (60 percent) will be
invested in Germany. "In this way, we are laying the foundations to
ensure that our 27 German production facilities remain at the
forefront of innovation and international competitiveness," said
Winterkorn, reiterating that:  
"At Volkswagen, we are committed to Germany as an industrial
location." The ratio of investments in property, plant and equipment
(capex) to sales revenue will be at a competitive level of between
six and seven percent in the period from 2013 to 2015. 
Alongside investments in property, plant and equipment, the plans
also include capitalized development costs of EUR 10.6 billion. By
building new production facilities, introducing new models and
developing alternative drives, as well as with its modular toolkits,
Volkswagen is laying the foundations for profitable, sustainable
According to Group Works Council Chairman Bernd Osterloh, "Continued
high levels of investment strengthen the Group's ability to face the
challenges of the future 
-- both in terms of products and production
processes. The investment planning agreed upon also represents a
clear commitment to securing jobs and employment at Volkswagen,
particularly in light of the difficult conditions seen in the
automotive industry." Osterloh says that sustainability and new
technologies such as hybrid technology are likewise a clear emphasis
in the investment planning. "We are also investing in securing our
proven flexible production network between plants. This enables
flexible production of different volumes and products at our
locations to meet market requirements," added Osterloh. 
At EUR 24.7 billion (roughly 63 percent), the Group will spend a
large proportion of the total amount to be invested in property,
plant and equipment in the Automotive Division on modernizing and
extending the product range for all its brands. The main focus will
be on new vehicles, derivatives and successor models in almost all
vehicle classes, which will be based on the modular toolkit
technology and related components. This includes a new generation of
MAN trucks. This will allow the Volkswagen Group to systematically
continue its model rollout with a view to tapping new markets and
segments. In the area of powertrain production, new generations of
engines will be launched offering additional enhancements to
performance, fuel consumption and emission levels. In particular, the
Group will continue to press ahead with the development of hybrid and
electric motors. 
In addition, the Company will make cross-product investments of EUR
14.5 billion over the next three years. This includes investments to
expand capacity, such as a new vehicle production facility for Audi
in Mexico, the expansion of Porsche's Leipzig plant with the new
Macan model in the SUV segment, as well as increased production of
automatic gearboxes. Other investment focuses include changes to the
press shops, paintshops and assembly facilities as a result of the
Company's high quality targets and the continuous improvement of its
production processes. Investments outside production are mainly
planned for the areas of development, quality assurance, sales,
genuine parts supply and information technology. 
Over two-thirds of the EUR 50.2 billion investment program will
continue to flow into increasingly efficient vehicles, drives and
technologies, as well as environmentally friendly production in the
period up to 2015. 
The joint ventures in China are not consolidated and are therefore
not included in the above figures. These companies will invest a
total of EUR 9.8 billion in new production facilities and products in
the period from 2013 to 2015. These initiatives will be financed from
the joint ventures' own funds. 
Volkswagen Group Communications 
Christine Ritz
Head of Group Investor Relations/Spokesperson for Finance
Phone: +49 (0) 53 61 / 9 - 4 98 40
Fax: +49 (0) 53 61 / 9 - 3 04 11
Marco Dalan
Spokesperson for Finance
Phone: +49 (0) 53 61 / 9 - 7 11 21
Fax: +49 (0) 53 61 / 9 - 7 94 44
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