Car company Volkswagen will increase their production

Volkswagen (VW), Europe's biggest car company, has announced plans to invest 26 bn euros ($28. 5 bn; £15.8 bn) over the next three years to boost production. It will also invest 4.4 bn euros in China through joint ventures. The firm has said it plans to overtake Toyota as the world's biggest carmaker by 2018. VW executives also signed contracts clearing the way to complete the takeover of rival Porsche. The two firms agreed to merge in August, ending four years of acrimony. VW also approved the purchase of the bankrupt carmaker Karmann. It will begin vehicle production at Karmann's plant in Osnabrueck, in north-west Germany, in 2011. The announcements came out of the firm's supervisory board meeting. "The Volkswagen Group is vigorously driving forward its long term growth strategy by investing in environmentally friendly models, innovative technologies and new plants," said chief executive, Martin Winterkorn. "We are continuing to make focused investments in our future."