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.November 19, 2003
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This Week:

• GM to Export Thousands of Cadillacs, Other Vehicles to China

• Nissan Sets 2004 Titan Pricing - Full-Size Truck Starts at $22,400

• The BMW Ultimate Drive Reaches Its Millionth Mile

• Award for high-performance sports car

• DaimlerChrysler Signs Letters of Intent to Strengthen its Ability to Export Vehicles to China

• Supervisory Board of Volkswagen AG discusses new investment plans

• Ford Names Vice Presidents

• Toyota Motor Sales, U.S.A. Announces Management Changes

• Walter Wieland to Retire as Head of GM Operations in Brazil

• Delphi Secures $388 Million in New Halfshaft Business Strengthening Its Global Market Position

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Supervisory Board of Volkswagen AG discusses new investment plans
 

Wolfsburg - At its meeting today, the Supervisory Board of Volkswagen AG discussed the new medium-term planning for the period 2004 - 2008. Investments planned for the next five years were one of the main topics. Under the new five-year planning round, the Volkswagen Group will restrict its investments until 2008 - chiefly consisting of investment in tangible assets and capitalized development expenditure - to a total of 41.6 billion Euro. This corresponds to a reduction of 11 percent compared with the previous planning round. "The change in the investment framework is made possible by better capacity utilization, synergy effects and not least by the positive impact of the Group's modular strategy. The Group's existing model planning is not affected." said Hans Dieter Pötsch, Member of the Board of Management responsible for Controlling and Accounting.

A total of 30.9 billion Euro has been earmarked for investment in tangible assets in the Automotive Division of the Volkswagen Group during the planning period. These investments are primarily linked to the expansion and upgrading of the product range. The focus is on successor models such as the new Passat and Audi A6, as well as new models and derivatives in the Golf class and in the commercial vehicles range. Additionally there is an emphasis on investments in the new generation of low fuel consumption engines and gearboxes, as well as technology to comply with future exhaust emissions legislation.

In total, some 88 percent (previously 85 percent) of investment in tangible assets in the Automotive Division will be accounted for by product investments, i.e. investments in expanding and upgrading the product range and the associated investments in modernising and realigning manufacturing facilities.

The average investment ratio over the coming five years will be 6.2 percent. This represents an improvement of 0.7 percentage points compared with the previous planning round.

Volkswagen's investment strategy will continue to place a strong emphasis on the significance of Germany as an industrial location. The Group's German companies will account for some 68 percent (previously 67 percent) of total investment in tangible assets in the Automotive Division. This is due to vehicle ramp-ups in Germany scheduled for the planning period.

As already announced, a further 6 billion Euro will be invested in new models, drive trains and factories of the Chinese joint ventures. These investments are not included in the Group figures quoted above and will be financed by the joint ventures.

The Volkswagen Group continues to pursue its target of increasing annual deliveries to over six million units during the next five years, thus strengthening its position as one of the world's largest automobile manufacturers.

(Nov. 14, 2003)