German automotive manufacturer Volkswagen has announced plans to pour an extra $62.2 billion into new manufacturing plants and technology.
In a statement Volkswagen said while it would be distributed worldwide the investment, which is more than quadruple the company’s 2011 operating profit, will focus on manufacturing plants in Germany.
“Despite the challenging economic environment, we are investing more than ever before to reach our long-term goals,” the company said.
Around $48 billion will go towards developing property, plants, and equipment, with 60 per cent of the spending going towards assets 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,” the company said.
A further $18 billion will be spent on cross-product investments, such as expanding the company’s new Audi facility in Mexico.
Volkswagen said it planned to modernise and extend all of its products, and would continue to invest in developing hybrid and electrical motors.
“This investment is the key to the Volkswagen Group’s innovation and technology leadership,” it said.
“It enables us to further strengthen our competitive position and ensure that we are fit for the future.”