Volkswagen Canada

Volkswagen Group reduces turn of capex

The Volkswagen Group is aligning investment activity in a Automotive Division with a stream situation. The aim is for designed investments in property, plant and equipment, investment skill and unsubstantial assets, incompatible capitalized growth costs (capex), to be capped during approximately EUR 12 billion subsequent year. The normal figure for a prior formulation duration was about EUR 13 billion per year.

“We are handling in capricious and flighty times and are responding to this”, pronounced Matthias Müller, Chairman of a Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Friday, after a unchanging assembly of a Company’s Supervisory Board. “We will particularly prioritize all designed investments and expenditures. As announced, anything that is not positively required will be cancelled or postponed.”

In this context, Müller announced a goal to boost output on choice expostulate technologies by approximately EUR 100 million subsequent year. “We are not going to make a mistake of economizing on a future. For this reason we are formulation to serve boost spending on a growth of e-mobility and digitalization”, he said. The core concentration will be on fast building electric expostulate systems for a Volkswagen Passenger Cars, Audi and Porsche brands.

Most of a capex is earmarked for new products, a stability rollout and encouragement of a modular toolkits, and a execution of ongoing investments to enhance capacity. Examples embody product start-ups such as a next-generation Golf, a Audi Q5, a new Crafter plant in Poland, as good as upfront expenditures for a modular electric toolkit (MEB). Approximately 50 percent of capex will be spent on a Group’s 28 locations in Germany.

Müller also summarized a initial projects as examples where investments are being widespread out to a larger border or cut back. For example, construction of a designed new pattern core in Wolfsburg is being put on hold, saving approximately EUR 100 million. In addition, a construction of a paint emporium in Mexico will be reviewed. In a indication range, a inheritor to a Phaeton – a pure-play electric indication – is being delayed. “We will examination and potentially cancel serve expenditures or widespread them out to a larger border in a subsequent few weeks, though but putting a destiny viability during risk”, explained Müller. He added: “Together with a works legislature member we will make each bid to keep a core workforce on board.”

The corner ventures in China are not combined and are therefore not enclosed in a above figures. These companies will say their formerly announced investment levels and are formulation expenditures in a volume of approximately EUR 4.4 billion in 2016. These investments will be financed from a corner ventures’ possess funds.