Volkswagen group to invest more than €62 billion up to 2016

The Volkswagen Group will invest around €62.4 billion in its Automotive Division in the coming five years. This is the result of the Group’s investment planning for 2012 to 2016 discussed by the Supervisory Board on Friday. “The Volkswagen Group is investing a record amount in forward-looking projects to achieve its goal of becoming the world’s best automobile manufacturer in economic and ecological terms”, said Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, adding: “We shall continue to extend our innovation and technology leadership. Top of the agenda for us are investments in environmentally friendly, sustainable models and drives.”

Investments in property, plant and equipment will account for €49.8 billion. More than half of this (57 percent) will be invested in Germany alone. According to Winterkorn, the Volkswagen Group with its high level of domestic investments offers the best possible proof of Germany's international competitiveness as a leading manufacturing location. "And this will continue to be the case in future", he said.


The ratio of capital expenditure to sales revenue will be at a competitive level of around six percent on average in the period from 2012 to 2016.

Besides investments in property, plant and equipment, the total amount also includes additions to capitalized development costs of €11.6 billion and investments in financial assets of €1.0 billion net of proceeds from asset disposals. Volkswagen is laying the foundations for profitable, sustainable growth by building new production facilities, introducing new models and developing alternative drives, as well as with its modular toolkits.

Group Works Council Chairman Bernd Osterloh commented as follows: "Volkswagen's investment package is yet another move designed to ensure the Group is fit for the future and takes the form of high-quality investments in new, innovative products, manufacturing processes and our global locations. This safeguards jobs for the long term." He also said that the planning round is proof of Volkswagen's commitment to its home country of Germany. For example, roughly €100 million will be invested in significantly improving the flexibility in the body and white production area of the Wolfsburg plant. The same applies to body and white production at Emden. "The investments in the Wolfsburg and Emden locations safeguard operations at the Emden - Wolfsburg - Zwickau turntable. In future, flexible manufacturing of different volumes and products will be possible at these locations, reflecting market requirements. This represents a major contribution to ensuring these three locations
are fit for the future", Osterloh said. In addition, the investments in the German locations will focus on alternative drives, new generations of diesel and petrol engines, and new generations of Volkswagen's innovative direct shift gearboxes.

At €32.7 billion (roughly 66 percent), the Group will spend a large proportion of the total amount to be invested in property, plant and equipment in the Automotive Division on modernizing and extending the product range for all its brands. The main focus will be on new vehicles and successor models in almost all vehicle classes, which will be based on the
modular toolkit technology and related components. This will allow the Volkswagen Group to systematically continue its model rollout with a view to tapping new markets and segments.

In the area of powertrain production, new generations of engines will be launched offering additional enhancements to performance, fuel consumption and emission levels. In particular, the Group will continue to press ahead with the development of hybrid and electric engines.

In addition, the Company will make cross-product investments of €17.1 billion over the next five years. Due to the high quality targets and the continuous improvement of production processes, the new products also require changes to, and additional capacity in, the press shops, paintshops and assembly facilities. Investments outside production are mainly planned for the areas of development, quality assurance, sales, genuine parts supply and information technology.

Investment activities will also include expenditure on wind, solar and hydroelectric power, in order to supply the factories with renewable energies. The plans are based on the Volkswagen Group's current structures and hence already take into account the consolidation of Porsche Holding Salzburg. The joint ventures in China are not consolidated and are therefore also not included in the above figures. These companies will invest a total of €14.0 billion in new production facilities and products in the period from 2012 to 2016. These investments will be financed using the joint ventures' own funds.

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Volkswagen presents latest efficiency technology system: world’s first cylinder shut-off in four-cylinder TSi

Volkswagen’s latest efficiency technology, a cylinder shut-off system, will debut in the new 1.4-litre TSI engine from the start of 2012. This is another large step for Volkswagen in terms of saving fuel.



Volkswagen is the first manufacturer in the world to implement cylinder shut-off on a four-cylinder TSI engine in high-volume production. The primary goal of the high-tech system is to reduce fuel consumption significantly by temporarily shutting off two of the four cylinders under low to medium loads. In fact, cylinder shut-off reduces fuel consumption of the 1.4-litre TSI by 0.4 litre per 100 km in the NEDC driving cycle. When Start/Stop functionality is integrated, which deactivates the engine in neutral gear, the savings effect adds up to about 0.6 litre per 100 km.







The greatest benefits of the cutting edge technology are realised while driving at constant moderate speeds. At 50 km/h, in third or fourth gear, savings amount to nearly one litre per 100 km. This new fuel efficient TSI will therefore also fulfil the future EU6 emissions standard. High efficiency does not exclude driving comfort: even when running on just two cylinders, the 1.4-litre TSI – with its excellent engine balance – is still very quiet and low in vibration.



Cylinder shut-off is active whenever the engine speed of the 1.4-litre TSI is between 1,400 and 4,000 rpm and its torque is between 25 and 75 Nm. This applies to nearly 70 per cent of the driving distance in the EU fuel economy driving cycle. As soon as the driver presses the accelerator pedal sufficiently hard, cylinders 2 and 3 are reactivated imperceptibly. The system takes its information from the accelerator pedal sensor to detect the mode of driving. If the driving exhibits a non-uniform pattern – for example, while driving in roundabout traffic or in a sporty style on a country road – shut-off functionality is automatically suppressed.







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Meet Volkswagen NILS... the future of commuting from Volkswagen

NILS, a single-seat electric concept vehicle that offers a glimpse of a new form of minimalist mobility, has been unveiled ahead of its public debut at the Frankfurt Motor Show later this month. This concept car – which features an aluminium space frame, wing doors and free-standing wheels – has the dynamic performance of a sports car, yet travels silently, and with zero emissions.



The NILS project is supported by the German Federal Ministry of Transport, Building and Urban Development, and is designed to be both technically realistic and economically supportable.

Volkswagen Nils

‘NILS anticipates the future. The goal of the NILS project is to research a technically concrete and economically feasible vehicle concept for micromobility which restructures individual transportation to make it more efficient and environmentally compatible based on electric drive technology,’ said Dr Ulrich Hackenberg, member of the Board of Management and Head of Development for the Volkswagen Brand.



With a range of 65 kilometres (40 miles) and a top speed of 130 km/h (80 mph) NILS would be the ideal vehicle for the majority of commuters in Germany. According to the German Bureau of Statistics, 73.9 per cent of all commuters residing between Berlin and Munich cover less than 25 kilometres (15.5 miles) on their way to work.



Cars have always been mirrors of their times – their design styles and technological standards reflecting a particular era – and NILS is no different. It uses emissions-reducing electric drive technology to fulfil the specific requirements of commuters. In Germany, for example, about 60 per cent of all commuters travel by car, according to the Federal Bureau of Statistics; of these over 90 per cent travel alone. Zero-emissions vehicles like NILS will offer these frequent drivers a new eco-friendly mobility solution.





NILS is a very compact car that requires extremely little space in traffic. It is only 3.04 metres long – making it about 50 cm shorter than the new Volkswagen up! – just 0.39 metres wide from wheel to wheel, and a mere 1.2 metres tall.



NILS has the same basic layout as a Formula 1 race car, with the driver in the middle, the engine in back, and free-standing outboard wheels. The 17-inch alloy wheels are equipped with 115/80 (front) and 125/80 (rear) tyres optimised for low rolling resistance.



Though its inspiration may come from Formula 1, the styling has its origins at the Volkswagen Design Centre in Potsdam, Berlin. Designer Thomas Ingenlath, the centre’s director, said: ‘NILS was designed to make a visual statement and transport a vision of the automotive future to the present. I am especially pleased that we managed to implement the concept of the two glass wing doors. This allowed us to create large transparent surfaces and simultaneously to make entering and exiting the vehicle very comfortable, even in the most cramped of parking spaces.’



Because NILS is so compact and lightweight (460 kg), it is a lot of fun to drive. It has a top speed of 130 km/h, and can accelerate to 100 km/h in less than 11 seconds. This is achieved using an electric motor with a reasonably small 15 kW nominal power and short-term peak power of 25 kW. A lithium-ion battery supplies the electric motor with energy. The battery capacity (5.3 kWh) enables driving ranges of up to 65 km, depending on the style of driving. A battery of this size is relatively inexpensive, and can be charged either via a conventional 230-volt electrical outlet (maximum charging time two hours) or at an electric vehicle charging station. The socket is located at the back underneath the rear lighting module.



The centrepiece of the electric drive system is the lightweight 19 kg electric motor together with its transmission and battery. Energy management is via a high-voltage pulse inverter, which – together with the 12-Volt DC/DC converter for the vehicle electrical system and the charger – forms an integral drive unit. All drive unit components are located compactly in an aluminium housing at the rear of NILS; drive is to the rear wheels.



The motor, battery and all other components are so compact that there is still space for a small but practical bootspace. The body-coloured area above the rear lighting module swings upward, revealing space suitable for items such as a case of drinks and a bag.



Optimal weight distribution helps to ensure that NILS allows drivers not only to commute with zero emissions, but also to have fun while doing so. The lightweight NILS drives like a go-kart. The steering is purely mechanical (the low weight means power assistance is unnecessary), while the electric motor produces its maximum torque of 130 Nm from standstill, via a one-speed transmission. Suspension is by double wishbones front and rear; while ESP (Electronic Stabilisation Programme) helps to tame any over-exuberance on the part of the driver.



Safety is of course even more important than fun, and NILS is fitted with an automatic distance control system. This uses radar sensors to scan the space in front of the vehicle over a distance of about 200 metres and uses brake interventions to ensure that the distance to vehicles in traffic in front of the car does not drop below a specified minimum value. The system can even automatically brake the car to a stop, depending on the situation. Not only are the four disc brakes used to brake; electric traction by electric motor and battery regeneration can be used to brake as well. Last but not least, Front Assist is integrated in the automatic distance control system. This continually active system warns the driver of a potential collision; at speeds below 30 km/h (18 mph), automatic braking can avoid a collision under some circumstances.





The instrument cluster is a seven-inch TFT display. The vehicle’s speed is shown digitally in the middle, while energy flow is represented by bars. Another graphic display offers information on the driving range. The second central instrument is a mobile multifunctional device like the one used in the new up!: the Portable Infotainment Device (PID). It is snapped into theA-pillar to the right of the instrument cluster. Via touchscreen, the driver controls functions related to Navigation, Radio, Media, Telephone, Trip computer and – to preconfigure the driving range – ‘Eco. The PID computes the expected driving range, then it not only displays the route on the map display, but also the radius and thereby the destinations that can be reached using the current battery charge.



To save on weight and costs, certain functional elements and controls do without electrical assistance. The side mirrors, for example, are adjusted manually. The heating and ventilation system has full electronic control, and there is seat heating. Located to the right of the steering column is the motor start-stop switch; this round switch is also used to select D, N or R.



The aluminium space frame body was designed to be a highly effective safety cell. The body in white is produced from extruded aluminium, cast aluminium and sheet aluminium. The roof frame together with the door mounts, a roll bar, the bootspace and the front bulkhead consist of high-strength sheet aluminium. Extruded aluminium is used in the side sills, the transverse profiles and the front and rear car sections. The front and rear side body are aluminium. Parts made of high-strength plastic include the bumpers and the trim panels on the side sills.



The frames of the wing doors consist of three main elements: an inner section, a crash reinforcement section and an exterior part. When closed, they offer optimal crash safety. The door windows are made of lightweight, scratch-resistant, layered polycarbonate, while the front window is made of laminated safety glass.



The headlights are striking bi-xenon modules, while the indicator lights and daytime running lights are white and yellow LEDs. In the acrylic glass of the rear lights – integrated in the rear section like small wings – the light generated by LEDs is routed via transparent semiconductors which (appropriately for an electric vehicle) consume minimal amounts of power.



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Volkswagen Amarok rescuing surfers and swimmers in Portugal

A fleet of 14 new Volkswagen Amarok pick-ups have been rescuing surfers and swimmers in Portugal this summer in one of its first uses as an emergency services vehicle.



The Portuguese National Institute for Search and Rescue has chosen the robust all-wheel drive Volkswagen Amarok for its quick response team which carry essential life saving equipment. Each Amarok has been fitted with an emergency lighting bar, racking for surf boards and an exclusive exterior design inspired by the original Volkswagen SAR pick-up concept vehicle that previewed the Amarok at the IAA Hanover commercial vehicle show in 2008.







‘This is a great example of the versatility our new pick-up offers fleet customers and the emergency services sector,’ said Al Hemmings, National Sales Manager, Volkswagen Commercial Vehicles.



‘We are delighted to add the new Amarok off-roader to our range of commercial vehicles this year which, with the Volkswagen 4MOTION system also available on our Caddy Maxi, Transporter and Caravelle ranges, means we now offer an extensive and versatile choice of all-wheel drive vehicles from vans and people carriers to a robust pick-up,’ he continued.



The new Amarok was launched in the UK earlier this year and is available as a double cab pick-up with four doors and space for five adults. It has the largest loadspace in its class and the most efficient model in the pick-up sector with lower emissions and better fuel economy thanks to its 2.0-litre TDI engine which produces as much power and torque as rivals still using larger engines.



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Volkswagen starts new “Think Blue.” campaign

Volkswagen is rolling out a new campaign under its “Think Blue.” initiative. Starting on August 5, the company will be launching a TV spot plus print ads in Germany to transmit its message about sustainable mobility and provide inspiration for individual, eco-friendly action. “‘Think Blue.’ forms part of our efforts to convey this message and to motivate people to join in. We have set ourselves the ambitious target of becoming the greenest automaker. Our products and this campaign demonstrate we have what it takes to achieve that,” Luca de Meo, Director of Marketing, Volkswagen Group and the Volkswagen Passenger Cars brand, explained.

With "Think Blue." Volkswagen is addressing how individual mobility and sustainable action can be harmonized. That not only includes developing eco-friendly products and technologies as well as resource-efficient production methods. With "Think Blue." Volkswagen is also seeking to heighten public awareness for sustainable action. Back in February 2010, "Think Blue." became the umbrella for Volkswagen’s activities relating to sustainability. The long-term project has been rolled out in more than 30 markets. "Our new ‘Think Blue.’ campaign aims to attract even more attention, because ‘Think Blue.’ thrives on the dialog with our customers and the integration of their ideas," de Meo commented.


The TV spot creates a symphony on sustainability using the unusual presentation technique of "music painting". The spot tells the story of fuel efficiency at Volkswagen, from "Think Small" to "Think Blue." Product and technology highlights from the recent past, present and future are drawn on a sheet of music accompanied by a contemporary cover version of the Beach Boy’s classic "Wouldn’t it be nice". The new spot already debuted in Australia on July 1. The German premier will be followed by the launch in other European countries and on other continents before the end of this year. The various print ads also provide a creative presentation of the company’s approach to sustainability.

The website at www.volkswagen.com/thinkblue went online on May 23. Visitors to the website can learn more about ecological sustainability, pick up fuel-saving tips or discover the global "Think Blue. Projects", one of which is the "Fun Theory", which is based on the idea that something as simple as fun is the easiest way to change people’s behavior for the better.

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Volkswagen Mexico starts production of the Volkswagen Beetle

Volkswagen has officially started production of the new Beetle in Puebla, Mexico. On this occasion Dr. Guido Westerwelle, the Federal Foreign Minister, Felipe Calderón, the Mexican President, and Hubert Waltl, Board Member for Production and Logistics at the Volkswagen Passenger Cars brand, visited the Volkswagen plant in Mexico.

“The Beetle is a strong symbol of our brand. It combines the emotional heritage of the original Beetle with the future of Volkswagen,” Hubert Waltl said in Puebla. “At the same time, the new Beetle and the engine plant we are building in Silao represent the great confidence we place in Mexico as a manufacturing location. As one of the main manufacturers of compact class vehicles, Volkswagen de México is a key building block in our growth strategy for North America.” Some 300 guests from politics and industry attended the ceremony in Puebla.


The Beetle wrote a success story in the USA in particular: That is where the mobility icon from Wolfsburg was sold almost five million times between 1949 and 1981. The New Beetle took up the thread of this Beetle Mania, with a total of 1.15 million units built in Puebla selling between 1997 and 2010. The latest Beetle celebrated its world premiere in April this year and will be in dealers’ showrooms in Germany from this fall.

The Puebla plant is the largest automobile factory in Mexico and one of the Volkswagen Group’s biggest vehicle manufacturing plants. It supplies North and South America as well as Europe with the new Jetta volume model. The Beetle and Golf Variant are built exclusively by Volkswagen de México for world markets. In 2010, the factory produced some 435,000 vehicles. Puebla also manufactures engines for the American continent and with its workforce of over 15,000 is one of Mexican industry’s largest employers.

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Volkswagen mandatory offer for MAN

Volkswagen Aktiengesellschaft through its mandatory offer has reached an important milestone on its way towards an integrated commercial vehicles group consisting of MAN, Scania and Volkswagen. MAN shareholders have tendered 35,857,607 ordinary shares and 164,613 preference shares into the offer. Following the required regulatory approvals, Volkswagen will hold 55.90% of the voting rights and 53.71% of the share capital of MAN SE.

With the high acceptance rate Volkswagen Group has conclusively achieved its aim to have a stable majority at future general meetings of MAN. “Volkswagen is more than pleased with the result,” said Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, and added: “As a result, our objective of realizing substantial synergies between MAN, Scania and Volkswagen in the interest of all shareholders, employees and customers is moving closer. We will continue to work expeditiously in close coordination with the relevant authorities towards obtaining the required regulatory approvals globally.”


Volkswagen Aktiengesellschaft had made a mandatory offer to all shareholders of MAN SE according to German takeover law to acquire their shares in MAN SE with the offer period running from 31 May until 29 June 2011. The offer price was €95.00 per ordinary share and €59.90 per preference share.

Following receipt of the regulatory approvals and subsequent settlement of the mandatory offer, substantial synergies in the fields of procurement, development and production can be realized through a closer cooperation of MAN, Scania and Volkswagen.

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Volkswagen ya está preparada para lanzar su línea de modelos eléctricos

At the 32nd International Vienna Motor Symposium, the Chairman of the Volkswagen Group, Prof. Dr. Martin Winterkorn, announced that the Volkswagen Group will be going into production with a range of important models with plug-in hybrid technology starting in 2013/14.

“The electric car will impact the future of individual mobility in crucial ways – and Volkswagen is spearheading this technology. Over the mid-term, the plug-in hybrid offers great potential, because it combines the best of two worlds in one vehicle,” said Winterkorn. The plug-in hybrid offers precisely what many customers expect: unlimited internal combustion engine performance combined with attractive electric mobility ranges in everyday driving. Moreover, Winterkorn noted that there are no limitations to the vehicle’s speed, climbing or towing abilities. He also stated that plug-in technology has excellent potential for reducing CO2 emissions.


“Electric mobility is the task of the century for the automotive industry and the European industrial community as a whole. Manufacturers, suppliers, energy providers, scientists and politicians – everyone must step up to the plate here,” said the Volkswagen chairman. Winterkorn spoke in support of more targeted research funding, especially in the field of electro-chemistry for battery technology.

At the Vienna Motor Symposium Volkswagen also showcased two new engines which will be available shortly: the 1.4-litre TSI Motor E 85 and the new 2.0-litre TDI, which already fulfils stringent BIN5/ULEV emission laws in the USA. Volkswagen’s advanced development of its twincharged 1.4-litre TSI with 118 kW for use with E 85 ethanol fuel, illustrates how the company is extending its line-up of eco-friendly engines and further contributing towards reducing CO2 emissions in internal combustion engines. In the Passat saloon, the combination of the new TSI with a 7-speed dual clutch transmission (DSG) in E 85 operation yields a fuel consumption value of 8.8 litres per 100 km in the NEDC driving cycle, which is equivalent to 144 g/km of CO2. This represents a seven per cent reduction in CO2 emissions compared to an engine operated with Super petrol fuel. The engine is earmarked for use in the Passat and Passat CC, initially in Sweden and Finland, where E 85 fuel has been widely available for many years now.

Unlike in the European automotive market, the share of passenger cars with diesel engines is still quite small in the USA. In recent years, just a few carmakers – notably Volkswagen and Audi – have been able to sell appreciable volumes of vehicles with diesel engines. By introducing the new 2.0-litre TDI, the Volkswagen Group is reaffirming its conviction that diesel engines still have great potential in passenger cars in the USA.

The 2nd generation 2.0-litre TDI, familiar from Europe, was modified and further engineered for the new Passat to be produced in Chattanooga exclusively for the North American market. To satisfy BIN5/ULEV emission regulations in the USA, it was necessary to reduce the engine’s raw emissions and install an SCR (selective catalytic reduction) emissions control system.

The 2.0-litre TDI produces 103 kW (140 PS) and has 320 Nm of torque. It accelerates the Passat from 0 to 60 mph in 9.3 seconds and has an electronically limited top speed of 113 mph. The car’s diesel fuel economy is 35 mpg (miles per gallon), which is equivalent to about 6.7 litres per 100 km.

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