(MENAFN) Germany's largest automaker Volkswagen AG plans to invest USD64.7 billion over the next three to ramp up plans to become the world's largest car maker by 2020.
The company is boosting spending on products and technology to maintain the leadership over its struggling western European peers, which have slowed or shelved whole programs, engine technologies and platform revamps while grappling with high costs in a shrinking European market.
More than two thirds of overall investments will go towards increasing vehicle efficiency and the development of more environmentally friendly products, the company said.
VW said also its capital expenditure would total USD50.6 billion, or 6 to 7 percent of sales for the period, broadly in line with analyst estimates.
Last year, it had said it would invest USD80.6 billion in the five years from 2012 until 2016.
VW is trying to snap Toyota Motor's place as the world's largest automaker, as is expanding its presence outside Europe, building or planning new factories in markets such as China, Mexico and Russia.
VW plans to invest an additional USD12.65 billion in new production facilities and products at joint ventures in China. As these joint ventures are not consolidated, their spending is not part of VW's overall plans.