Volkswagen AG (VOW.XE) said Monday that it will invest 22.8 billion euros ($26.8 billion) in the future viability of its plants from 2018 to 2022.
The main focus of the investments, which are part of the company's Transform 2025+ strategy, will be on the further development of modular production, the continuation of model production and further efforts on electric vehicles.
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Germany will see the lion's share of the investment with EUR14 billion to be invested in the country, Volkswagen said. As part of the program around EUR1 billion will be invested to transform the Zwickau plant into a solely electric vehicle facility.
The Volkswagen I.D., the first vehicle in a new generation of electric automobiles, is expected to be launched in 2020 with production of around 100,000 unit, it said.
The company said that the new vehicle generation will be launched at around the same time in Europe, China and the U.S.
Production of the Volkswagen Golf and Passat in Zwickau will be relocated to Wolfsburg and Emden, Volkswagen said, where investments will be EUR2.9 billion and EUR1.1 billion respectively.
Regarding the company's components plants in Germany, investments will come at more than EUR750 million in Brunswick, around EUR1.5 billion in Kassel and more than EUR800 million in Emden, Volkswagen said.
"The investment package which has now been adopted will give a decisive boost to the largest product and technology offensive in the history of the brand. It is our objective to position Volkswagen sustainably in the lead in the volume segments and to take up a leading position in e-mobility," Chief Executive Herbert Diess said.
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(END) Dow Jones Newswires
November 20, 2017 01:52 ET (06:52 GMT)