Volkswagen to make an investment of Rs 7.15 lakh crore by 2018

Volkswagen Group has announced their plans of investing 84.2 billion Euros (about Rs 7.15 lakh crore) globally till the advent of 2018. However, the company’s joint ventures from China will independently invest another 18.2 billion Euros (about Rs 1.55 lakh crore) during the same period.

Seventy-five per cent of this investment will be used to make the existing cars more efficient, producing vehicles and work spaces which are environment friendly and also spend for new drives and technologies. The investment strategy also includes reducing the automaker’s expenditure in fixed assets like facilities, equipment and focus on innovation and technology leadership.

Since the Chinese joint ventures are not consolidated and are not included in Volkswagen’s group figures, they will invest separately in the same time frame. Apart from the investment plans, Volkswagen has ambitious intentions of increasing their operating profit margin by almost double. Currently the benefits are 3.5 per cent, which will be aimed to reach six per cent.

Car manufacturers from Germany seem to be planning to make large investments in their Infrastructure. Audi announced their investment plans very recently and with Volkswagen joining the league we can say that the German automakers will soon be storming the car markets with their wide range of products and competitive technologies all over.