A major announcement has come from the automotive industry in the form of some major Volkswagen investment. Volkswagen is quoted to be investing $85 Billion plus (£54 Billion). The reason behind such a hefty investment? To ultimately become the world’s largest car manufacturer, overtaking Toyota by the year 2018.

What will the investment be used for?  It has been stated by the company that they plan to invest up to $68 Billion on equipment, plants for developments and properties. Over half of that is expected to be placed in Germany alone. $44 Billion is said be used on improvements, upgrades and extending for all of its brands, which account for 9 in total.  Another sizeable chunk on top of the figure mentioned is also said to be invested into the companies Chinese enterprise. The aim will be the opening an extra two manufacturing plants in China.

The investment from Volkswagen has got the go ahead by the appropriate executives within the company. Volkswagen have mentioned that the money will be spent responsibly too, something which some car companies have failed to do in the past.

In 2010 the annual car sales reached a figure of 7.2 million. Volkswagen are hoping that they can sell a further 3 million cars per year with a total number sales equating to 10million yearly.

Low emission levels and fuel efficiency are certain to high on the agenda when it comes to upgrading the current line-up. As mentioned before in previous articles, this is the way forward for the car industry. Developments of electric and hybrid cars along with adding to their current Bluemotion technology line-up, which has been a huge success. Powertrain technology is certainly a part of the business that will get serious attention.

The Volkswagen investment is sure to bring about a new range of innovative engines. This is sure to be high priority, with the company always looking for different ways of exploring different areas of the market.

Toyota will be extremely difficult to overtake. Their reputation is second none, with them showing great resilience during the global economic crisis and the recent Japanese natural disaster.  Becoming the world’s number one car manufacturer isn’t easy and certainly isn’t cheap. The Volkswagen investment clearly signals their intent to push themselves straight to the top of the of the leader board. Failure would be a disaster