[FRANKFURT] Volkswagen on Friday announced it will invest 85.6 billion euros (US$106 billion) in its automotive operations over the next five years on foreign expansion, models and technology to back its quest for global leadership even as it carries out an austerity drive.
The German group said the bulk of spending would go toward developing a range of sports utility vehicles, as well as on modernizing part of the light commercial vehicle portfolio.
At the same time, investments are also planned in new vehicles and successor models in almost all vehicle classes, which will be based on the modular toolkit technology and related components, the company said in a statement.
VW, which had used resilient profits during the previous European auto slump to expand its footprint in China and North America, reckons it can solve the conundrum of not cutting back on key projects while saving the hefty sum of 5 billion euros.
Volkswagen's Chinese joint ventures will also invest 22 billion euros, the company said.