Volkswagen shields product-based spending from cost cuts

Volkswagen, Europe's biggest carmaker, 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. The German company will dedicate over two thirds of overall planned investment of 84.2 billion euros ($113 billion) through 2018 to vehicles and technology, it said on Friday.
Spending not related to products will drop about half a billion euros per year to 12.7 billion euros between 2013 and 2015, from 13.1 billion euros in the 2012 three-year programme, VW said, citing steps to delay construction projects and streamline capacity.
"In times like these, our disciplined cost and investment management will remain a cornerstone of our activities," Chief Executive Martin Winterkorn said.
The company's two Chinese joint ventures, which are not consolidated, will invest an additional 18.2 billion euros from 2014 to 2018, underpinning VW's goal to become the world's largest automaker.