Volkswagen to invest more than £60bn in next five years

German car maker Volkswagen (VW) will invest £67.7bn in its automotive divisions over the next five years.

The cash injection will focus on foreign expansion, models and technology to sustain the group's development at a time when the German firm is also aiming to cut costs.

VW said the majority of the funds will be used to develop and produce more efficient vehicles, as well as to develop and implement more environmentally friendly production methods.

Over £30bn of the investment plan will be used to develop a range of sports utility vehicles and to modernise part of the light commercial vehicle portfolio as well as to develop and produce hybrid and electric vehicles.

"As expected, VW's five-year capex planning has not become a victim of the company's efficiency programme which is, among other things, aiming at €5bn of efficiency gains at the VW brand by 2018," analysts at Evercore ISI said.

The group said its capital expenditure will be at between 6% and 7% in four years between 2015 and 2019, adding that the investments will also be channelled towards successor models in almost all vehicle classes.

"We will continue to invest [...] to become the leading automotive group in both ecological and economic terms with the best and most sustainable products," said group chief executive Martin Winterkorn.

VW shares were up 1.13% to €175.05 at 14:24 on Friday.