UPDATE 2-VW unveils multi-billion auto investments through next five years
* VW to invest 85.6 bln eur in autos division 2015-2019
* VW China joint ventures to invest 22 bln eur
* Investments go toward SUVs and hybrid, electric motors (Adds details of investment plan, context)
FRANKFURT, Nov 21 (Reuters) - Volkswagen AG is to invest 85.6 billion euros ($106 billion) in its automotive operations over the next five years to push foreign expansion, new models and technology to back its quest for global leadership.
Volkswagen said the bulk of the cash will flow into developing more efficient vehicles and production methods, taking its capital expenditure to between 6 and 7 percent of revenue in the period from 2015 to 2019, which analysts said amounts to a slight hike in investment spending.
Analysts at investment banking advisory firm Evercore ISI said, "As expected, VW's five-year capex planning has not become a victim of the company's efficiency program which is, among other things, aiming at 5 billion euros of efficiency gains at the VW brand by 2018."
Volkswagen shares rose 1 percent, to 176.10 euros at 1140 GMT, while the DAX blue chip index was trading up 2 percent.
Around 41.3 billion euros of the investment plan will go toward developing a range of sports utility vehicles, modernizing part of the light commercial vehicle portfolio and toward developing hybrid and electric drives.
At the same time, investments are also planned in new vehicles and successor models in almost all vehicle classes, which will be based on modular toolkit technology and related components, the company said in a statement. Continuación...