Volkswagen Spending Cuts Will Not Affect Model Expansion Plans

Volkswagen will keep spending on upgrading and expanding its range of models in the years ahead, despite lowering planned investment in other areas to offset rising costs.

VW will dedicate about 65 percent of overall planned investment of 84.2 billion euros ($113 billion) through 2018 to vehicles and technology, the automaker said today in a statement.

Spending not related to products will drop about half a billion euros per year to 12.7 billion euros between 2013 and 2015, from 13 billion euros in the 2012 three-year program, VW said, citing steps to delay construction projects and streamline capacity.

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MattDarringer - 11/23/2013 10:32:09 AM

+1 Boost

VW continues to be clueless about the American market. Ultra cheap cars like the Spark, Versa, and Mirage are quite significant, but the Up is nowhere to be found. It could EASILY be sourced from China with a big profit on each one. The B-segment hatchbacks like the Fit, Fiesta, Sonic, Yaris are hotly contested, but yup no Polo. The Jetta is an also-ran in the Corolla-Civic wars and desperately needs at minimum a major update if not a full replacement. The Passat that debuted strongly is now losing steam FAST in the CamCord wars as the Fusion and Optima show how to do conquest sales. The CC needs to become an Avalon. The Tiguan is not competitive against the CRV/RAV4. They are still debating about the CrossBlue that needed to be here a decade ago. They have no minivan. They have a pickup but do not bother to try to sell it here in pickup central. Piech needs to be medicated and put in an asylum. Hiring Mulally would be the thing for VWAG to do if it wants product coherence and profit.