Volkswagen AG Plans to Invest $7 Billion over Next Five Years in North America
Nearly $7 billion investment has been planned German automaker Volkswagen AG over the next five years in North America. The investment plan has been announced to increase its sales in the U.S. car market with focus on SUV market.
The Wolfsburg, Germany-based Company, revealed that it will launch a mid-sized sport-utility vehicle in 2016. The vehicle is designed particularly for North American market.
With the introduction of more locally made cars, Europe’s largest automaker will repeat its objective of selling 1 million Volkswagen and expensive Audi cars yearly in the United States by 2018.
CEO Martin Winterkorn said, “The Volkswagen brand is and remains at the heart of our product strategy here”. This was told at the time of the North American Auto Show.
VW revealed that the latest seven-seater, SUV, would be launched in 2016. However, the production location of the model has not been told by the company.
Volkswagen Group also possesses the Porsche, Bugatti, Lamborghini, Skoda and Seat marquees. The company sold 600,000 cars in North America in 2013.
This year, Audi is also making preparations to launch the A3 compact and Q3 compact sports utility in North America.
VW is the third-largest auto manufacturer in the world. It stated record deliveries in 2013, enhanced by increasing demand in China. It outperformed General Motors Co. for the very first time in nine years in China.
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