Volkswagen plans to invest $7 billion in North America over next five years

VolkswagenAt an auto show news conference in Detroit, German automaker Volkswagen AG said that it plans to make an investment of $7 billion in North America in the next five-year period --- a move which will help the company speed up its growth in the region.

With General Motors, Ford Motor, and Toyota Motor being the biggest competitors of Volkswagen in the North America region, the investment which Volkswagen plans to make in the region will help it catch up with its three rivals.

About the planned $7 billion investment in North America, Volkswagen said at its press conference at the Detroit auto show that it will use the money for constructing a new plant in the region. However, the company has not yet selected any particular location for the plant it is planning to build with the mentioned investment.

Other than the $7 billion investment, Volkswagen will also make attempts to boost its sales in the North America region in the coming years. The automaker plans to launch a new sports utility vehicle (SUV) in the US in 2016; along with reaching its US sales target of one million Volkswagens and Audis by 2018.

With regard to Volkswagen's planned North America investment, the automaker's CEO Martin Winterkorn said that "As a group, we will be investing over $7bn in North America over the next five years;" and added: "The U. S. is a cornerstone of our 2018 strategy."