Volkswagen plans $7b investment

German car maker Volkswagen has said it will invest $7 billion (£4 billion) in North America over the next five years as it looks to boost its sales in the region.

The firm will also launch a new sports utility vehicle (SUV) in the US - one of its biggest markets - in 2016.

It also reiterated its goal of selling a million Volkswagens and Audis - its luxury brand - in the US by 2018.

Volkswagen has set its sights on becoming the world's biggest car maker by then.

It is currently the world's third-biggest manufacturer, behind Japan's Toyota and US car maker General Motors.

"As a group, we will be investing over $7 billion in North America over the next five years," said chief executive of Volkswagen, Martin Winterkorn.

Volkswagen's plans to boost investment in the region come at a time when the US car market has been recovering from the slump seen in the years after the global financial crisis.

Analysts expect 2013 to be the best year for the US auto market since 2007, with annual sales expected to reach nearly 15.6 million units.

If that figure is met, it would mark a strong recovery from 2009, when sales fell to 10.4 million.

BBC