Volkwagen announced an investment of €84.2 billion in technologies and manufacturing facilities over the next five years for its goal of being the world’s number one automaker. Over two-thirds of the investment will go to making more efficient vehicles, and environment friendly production.

“We will continue to invest strongly in our innovation and technology leadership, despite the uncertain economic environment. This will once again significantly boost the Group’s competitiveness and safeguard its future. I am convinced that this will give us extra power on our way to the top,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen.

The company will be spending more than half of its €63.4 billion allotment for property, plants and equipment in Germany. The lower than previous amount is due to postponement of construction and capacity optimization to make way for new vehicle development and expansion of its vehicle lineup across all its brands.

To meet new European carbon dioxide targets, it has alloted a capitalized development costs of €19.5 billion and other investments including for financial assets to the tune of €1.3 billion. The company is also investing a significant amount to revamp its engines to meet Euro 6 emission standards. VW also signified its commitment to developing hybrid and electric powertrains.

The company’s joint ventures in were not included in the investment plan, but they will invest a total of €18.2 billion from the JV’s own funds in new production facilities and products in the period from 2014 to 2018.