Volkswagen AG announces plans to invest about €28.9 billion ($42.4 billion) in its automotive operations over the next three years.

The outlay comprises a €20.9 billion ($30.6 billion) investment in property, plants and equipment, while the remainder will cover development costs and investments in financial assets, the company’s supervisory board says.

Most of the investment will occur in Germany and will increase the company’s capital expenditures as a percentage of sales to 6% between 2008 and 2010.