Volkswagen plans $7bn North America investment

Volkswagen Golf on display Volkswagen is looking to nearly double its sales in the US by 2018

German carmaker Volkswagen has said it will invest $7bn (£4bn) in North America over the next five years as it looks to boost its sales in the region.

The firm will also launch a new sports utility vehicle (SUV) in the US - one of its biggest markets - in 2016.

It also reiterated its goal of selling a million Volkswagens and Audis - its luxury brand - in the US by 2018.

Volkswagen has set its sights on becoming the world's biggest carmaker by then.

It is currently the world's third-biggest manufacturer, behind Japan's Toyota and US carmaker General Motors.

"As a group, we will be investing over $7bn in North America over the next five years," said Martin Winterkorn, chief executive of Volkswagen.

Robust growth

Volkswagen's plans to boost investment in the region come at a time when the US car market has been recovering from the slump seen in the years after the global financial crisis.

Analysts expect 2013 to be the best year for the US auto market since 2007, with total annual sales expected to reach nearly 15.6 million units.

If that figure is met, it would mark a strong recovery from 2009, when sales fell to 10.4 million.

Global carmakers, including Volkswagen, have benefited from the continuing recovery.

Last week, Volkswagen reported record sales for its luxury brands - Audi, Porsche and Bentley - in 2013.

A rise in deliveries in the US market was a key contributor to their sales during the period.

Audi's sales jumped 13.5% in the US during the period, from a year ago, while Porsche saw growth of 21% and Bentley deliveries rose 28%.

More on This Story

More Business stories

RSS

BBC Business Live

  1.  
    TESCO 06:00: Radio 5 live

    Some stinging words on Wake Up to Money for Tesco's management from Phil Dorrell who runs a consultancy called Retail Remedy. "The senior team is stumbling around looking for a code to get market share to where it should be," says. "Innovating is not going to get them out of the current troubles," he says. They need "a clear strategy of where they are going" and how they will "improve the vast majority of their stores," Philip says.

     
  2.  
    06:00: Howard Mustoe, Business Reporter

    Good morning! Get in touch via twitter @BBCBusiness and via email bizpagelive@bbc.co.uk

     
  3.  
    06:00: Ben Morris Business Reporter

    Tesco reports annual results at 07:00 and analysts are talking about a 10% fall in profits. Check-in with the Business live page for the details. And good morning!

     

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.