Volkswagen to invest more than US$85 billion up to 2016

Volkswagen to invest more than US$85 billion up to 2016It’s the largest-ever investment package in Volkswagen’s history for new models, environmentally friendly technologies and production facilities – the VW Group is set to invest more than US$85 billion (62 billion euro) in its automotive division into 2016 as it continues its march towards becoming the world’s leading automaker.

Investments in property, plant and equipment will account for around US$68 billion, with 57% of this in in Germany alone. Of the amount, US$44 billion will be used on modernising and extending the product range for all its brands. The main focus will be on new vehicles and successor models in almost all vehicle classes, allowing the company to systematically continue its model rollout with a view to tapping new markets and segments, though powertrain movement is also on the cards, with new generations of engines – offering additional enhancements to performance, fuel consumption and emission levels – set to come about. In particular, development of hybrid and electric engines is a focal point.

The joint ventures in China are not consolidated, and are separate to the above figures. In China, the Group is set to invest US$19 billion through 2016. The investment includes spending for a batch of new models and two new assembly plants that have already been announced.

There may yet be a need to add to those two factories being built, according to reports – currently, VW already has 11 plants in China, yet with 1.9 million units sold in the country last year and a solid projection that sales could climb to 2.4 million units this year, additional plants may be needed to keep up with the ever-increasing demand.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • VW fan on Sep 20, 2011 at 2:44 pm

    Maybe they can buy Proton with that money too.

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  • DarkAvenger on Sep 20, 2011 at 2:53 pm

    If Proton has merge with VW previously, part of this budget will be use for our auto car industry improvement as wel…..so sad….

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    • MoFaz on Sep 20, 2011 at 3:32 pm

      what the heck? even if VW is not with Proton, they’re still with another malaysian company… Hicom.

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    • bobdbilder on Sep 20, 2011 at 9:14 pm

      I work for a 100% German company where 60% of profits go back to Germany every year. Its their law. We call it in our books ‘Contribution’. Investment? They won;t invest if it doesn’t bring higher EBIT.

      Come on dudes look at their Year to Date Sales in Malaysia. They are nothing when it comes to volume. They won’t invest here because no manager would promise higher returns on such small numbers. They only invest in marketing. Awareness. Value Creation. That’s what you do when you have low volume. You sell for profits at target markets, lowering expenditure, consolidate functions. Boot out the expat, get a local.

      Volkswagen will never sell for the common man. Not here. Not now. They don’t want to. The common Malaysian man cannot spend the extra money on German value adders. Their target is the top 15% of our population.

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  • Expatriate VN on Sep 20, 2011 at 3:05 pm

    So, VW say bye bye to Canland, P1 anak dara tua jual mahal!

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    • MoFaz on Sep 20, 2011 at 3:47 pm

      VW still in Canland. not in Tanjung Malim but in Pekan, Pahang. no bye bye, but welcome for VW!

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    • Bro, please look at VW & Suzuki partnership. Suzuki gain nothing from VW, while VW want to try their luck to take over Suzuki. Are you happy if someone takeover proton ?

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    • Tubik Racer on Sep 21, 2011 at 1:40 am

      yeah..go expatriate VN…u da man!!

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  • Unforgiven on Sep 20, 2011 at 3:23 pm

    What about Proton to takeover VW? And sell it back for Euro 1 after time?

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  • Unforgiven on Sep 20, 2011 at 3:56 pm

    We have a lot of M’sian that’s very proud of driving a Proton.
    Very happy driving a Waja and whole family with 5 Proton cars.
    I noticed that mainly from those Proton treats at this forum.

    BMW/Mercs/Japs cars are nothing to them, so I’m guessing all this Japs company going to neighboring countries also won’t bother them too much.
    As long as Proton is still here in M’sia.

    Those people also do not mind ICT moving from M’sia to India/China.
    They are pure Proton supporter and G supporter, the fixed mindset is there.
    Funny but it’s true.

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  • BeemerFreak on Sep 20, 2011 at 5:21 pm

    Is it even possible for VW to operate without a Local partner just like what Toyota is doing in Thailand? In that way, money will only flow into Malaysia instead of both ways since facilities and salary payment will be fully borne by VW instead of DRB-Hicom.

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    • bobdbilder on Sep 20, 2011 at 9:19 pm

      Hahaha. You are funny. Salary is paid by Sales dude. Well, actually EBIT. That’s Sales less Operational Costs and Costs of Goods.

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  • nabill on Sep 20, 2011 at 6:11 pm

    Do u guys notice that the 85bil is almost as big as msia annual budget??

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  • Suzuki and Proton r very kiasu ! very lousy and small companies still don’t want to let their big brother VW to takeover!

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  • Jimmy on Sep 20, 2011 at 10:15 pm

    All the best VW, the real No1 auto maker.

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    • superleggera on Sep 21, 2011 at 12:10 am

      only in VW you can enjoy the best and latest technology, such as DGS and TSI even in entry level model. Japanese always keep that for the high-end model. While Japanese are planning for Indonesia and Thailand expansion, VW is still keen on Malaysia. Sad to see that our G keep on protecting Proton while losing the opportunity to collaborate with the most promising automaker.

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  • ken dan on Sep 21, 2011 at 1:14 am

    DEAR paul,your car news not intresting anymore……………..

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    • MoFaz on Sep 21, 2011 at 9:40 am

      put proton or perodua in the title and you’ll see comments flooding the whole page :)

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    • mmouse on Sep 21, 2011 at 11:58 am

      Dear Paul, your news is still very interesting and informative to me. Please keep up the good work. Thank You.

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  • Expatriate VN on Sep 21, 2011 at 11:19 am

    Every time world class players like VW or others want to invest in Malaysia in many ways?????

    – JV with or take over P1 – Cronies vendors, P1 MD, Engineers, etc scare out of shits that they will lost the jobs or the lucrative contract for component suppliers!!!!!! Engineers get redundancies, etc …….. So, the only jaguh kampong way to save their sorry ass is to go “alone” without any partnership by not let VW take over.

    – Oh ya, all the retard blind supporters would spill their craps that we should have our own car producer (not re-badge or assembler like P2), create job lah ……. this and that lah this “deadwood” still need protection lah, already have a lot of improvement under DSZ like alphabets crunching to Cam-Tak-Pro engine – CVT, CPS, VIM, IAFM, upcoming Turbocharged & EVE Hybrid, etc.

    – At the end, still back to square by re-badge Lancer into Inspira. Recent news more “depressing” are to practically become “contract assembler” and “OEM” for producing engine in so call “strategic collaboration” with Mitsubishi, in order to utilize the under-capacity Tg Malim facilities.

    – Despite Japs, US, Korea, etc protect their car industry, which we reasonably to believe so. These were done with the intention to ensure the car manufacturers are competitive, and consumers are benefits from good quality car at best market price. However, in our Canland, our big brother NAP and partner with P1, manufacture low quality shitty cars at high price, and imposed tariff (i.e. taxes) and non tariff measures (i.e. AP) for non national cars to force consumers to buy all makes car at inflated prices.

    – Hardcore un-educated blind supporters like MoFaz a.k.a. “MooFart”, one big question throw to you ?????? Show me evident(s) which car manufacturer countries in the world formulate car policy like NAP (i.e. despite some impose protective measures) that allowed their car industry as a breeding ground for vendor cronies, AP Kings, etc to suck dry their consumers until last drop of blood?

    Ha, ha, ……. see how the blind supporters farting methane, CH4!

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    • vk9545 on Sep 21, 2011 at 1:08 pm

      your rite..VN

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    • MoFaz on Sep 21, 2011 at 3:26 pm

      ahaaa.. picking up a fight with me? but your challenge is so easy, tak mencabar langsung! no surprise, it’s coming from someone who doesn’t know what expatriate means…

      1. look at Korea and Japan, how many percent is imported cars? only 5% in Korea, and you can’t find Honda or Toyota roaming on Korean streets. maybe they don’t need imported cars now because Hyundai/Kia is already good, but do you think that Hyundai/Kia is way better than Toyota / Honda since the beginning, since 1960s? no, for 40 years Koreans are stuck with their automotive policies, ask those who owned previous gen Korean cars, many would say they are worse than Proton. They have to give 10 years warranty in US just to ensure that their stock of cars cleared up. So, yes, their vendors are producing crap parts too.

      2. Thailand is the Detroit of asean… they produced and exports more than 1 million cars every year but BMW, Merc, Hyundai CBU imports are more expensive there compared to Malaysia. if not because of AFTA, I think Proton cars would be more expensive there too. So, why import tax is higher there? their vendors are producing at least 40% of parts for CKD cars. if CBU is cheap, CKD sales will go down and it will hurt their CKD industries and also their vendors. Wasn’t that tax is some kind of “protection”??

      3. Economy of Malaysia is not as strong as US and Japan. RM keep on depreciating against yen and dollar. Cars from US or Japan and even German would definitely become more expensive as exchange rate is not in our favour. Our exports wasn’t that much too, so we have to shrink our imports. Probably, that’s what Dr. M perceived. So proton was established to enable more rakyat to own a car. Cheapest Vios with airbags and abs is RM63k in Thai. We have Saga here for RM45k. 140,000 people bought Viva and Saga last year. that’s mean there are still many people couldn’t afford to buy or willing to spend more than RM50k for a car. Be reasonable with your demand, don’t expect Proton to produce something like C-class or 5 series for RM40k.

      the problem here is your mentality. Keep looking down on our local talents but always think that foreign products are better. Intel, Sony and Western Digital wouldn’t open their R&D here if Malaysians are bodoh as what you said numerous times here. Hyundai/Kia once produced terrible cars, but by going global they learned and now produced the best sellers. If Koreans are full with people like you, they might not achieve what they achieved now. We only hope proton could put up the same fight and be better.

      what u mentioned are not facts, but mere speculations and rambling to vent your anger and hatred. I’ve explained all above few times before. u just became quiet when u can’t argue anymore and suddenly challenging me here. I hope this is the last time I had to explain this to you. no matter how many time people explained about Inspira, you still can’t accept it. I get the point that u’re kepala batu, so I won’t bother about ‘a Malaysian working in Malaysia but calling himself an expat’ anymore.

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      • Wasting time to read the long and nonsense comments Zzz

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      • Local talent ptui… How many of local talent left here? How many percent does P1 takes in? Most already export to other countries.. Dare you say u work in Msia.. ptui ptui.. dun touch this issue again.

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      • Unforgiven on Sep 22, 2011 at 10:13 am

        1. look at Korea and Japan
        – Look at them today, visit the countries, try to own a Korea/Jpn car for few years.

        2. Thailand is the Detroit of asean
        – Do you prefer the CKD style or the P1/P2/Naza rebadge style? Which is better in the long run?

        3. Economy of Malaysia is not as strong as US
        – You may also go to US/India/China, RM50k is quite expensive for a car. I seldom heard of 7/9 years loan for a car when I was there lately.

        the problem here is your mentality.
        – To change the mentality, you need to have a fair fight, P1/P2/Naza type of business will not be able to fight in the Global market. How hardworking can you be? How perfectionist if comparing with them?

        what u mentioned are not facts
        – What is white/black? What is good/bad? Do you really wanna be good? What is JPJ? What is Police with HD camera? What is everything also can be settled? Just be good k.

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      • “that’s mean there are still many people couldn’t afford to buy or willing to spend more than RM50k for a car”

        You are correct. And the main reason why cars from US or Japan and even German are so expensive in Malaysia is…..?

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      • Expatriate VN on Sep 22, 2011 at 5:39 pm

        Your points noted and totally agreed with you, but it is good at educating P1 how to be competitive and not depend on NAP, definitely it is not me.

        But you retard blind supporter haven’t answer my one simple question, I repeat for 2nd time, show me evident(s), which car manufacturing countries in the world formulate NAP like protective policy that become a breeding ground for cronies vendors and AP Kings (e.g. facts – 1 AP King pass away, another 1 AP Queen was kicked out from cabinet after GE12) to suck dry consumers until the last drop of blood????? Does Japan, US, Korea have AP Kings and cronies vendors???? Ha, ha, ……. as far as you can’t give evident(s), you are just farting methane, CH4.

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        • MoFaz on Sep 23, 2011 at 10:59 am

          cronies vendors might also happen in some other countries like thai. previous thai PM was reportedly has his family controlling all major industries in Thai, but i do not want to speculate further. just google “pm thai cronies” and u can read a lot about it. what about US, Japan, Indonesia then…? let me ask you, do you really, really, really sure they are 100% free from cronyism?
          AP is different issue and it’s going to be abolished by 2015, maybe u’ll have to pay for import permit directly to gov afterwards. but probably only a limited number or imports will be allowed every year, maybe like COE in Singapore but i’m not sure whether the new system later act like COE too where the price of COE is now more expensive than the price of car.
          Excise duty for CBU passenger cars from Asean countries is now 75% to 125% depending on engine capacity, versus 80% to 200% previously. it’s going to be reduced further little by little. improvement has been made, just maybe too slow. but i also understand that it can’t be too sudden as it will jeopardize my, your and everyone else’s second-hand car value. would u like if the value of your car drop 20-30k just overnight?

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    • Hoochiez on Sep 21, 2011 at 8:34 pm

      VN, no point trying to put common sense into P1 cybertroopers like mofaz etc – they are beyond incorrigible, which leaves the only sensible assumption (which i find myself repeating for the umpteenth time) – they or their families are cronies lor, what else ?

      Even our dear PM (who was so free to pull a “gotcha” on national radio – OMFG…) commented that the NAP crap and taxes are to provide significant source of income to the so “effective” fed gov – what more do you expect from these P1 cybertroopers ?

      My point is the same – how about implementing GST ? Why postpone ? Takut kalah GE la, ape lagi ? After 50 years of crony-plundering, now complain tak cukup duit to run the country…. Same like P1 la, all the years of protection, masih asyik compete with P2 saje…jaguh kampong. Zzzz…

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  • vk9545 on Sep 21, 2011 at 1:07 pm

    Expatriate VN says:

    greatly said bro..i support ur view..

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