bto increase its capital spending by about €1.1bn, which is triggered by the increase in development cost and investment in technologies required to reduce CO2 emission from production.
More than half of its capital spending is expected to go to its German division and the company could see a rise in its domestic operations in the coming years.
The company's joint ventures in China, is expected to invest €22 bn between 2015 and 2019, which will be financed by the cash flow from the China ventures.
Volkswagen Aktiengesellschaft Board of Management chairman Prof. Dr. Martin Winterkorn said: "We will continue to invest in the future to become the leading automotive group in both ecological and economic terms - with the best and most sustainable products.
"Development costs will remain high in the future as a result of high innovation pressure and increasing demands on the automotive industry from CO2 legislation.
"As a Group, we have the expertise and financial strength to continue to extend our technology leadership and to reach our goals for 2018."
