Increase in capitalized development costs

In fiscal year 2008, research and development costs in the Automotive Division decreased by 4.1% year-on-year. The capitalization ratio rose to 37.4% (29.4%), mainly due to the increase in the number of new products as part of the model initiative. The ratio of research and development costs to sales revenue recognized in the income statement in accordance with IFRSs in the Automotive Division was 5.0% (5.4%).

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RESEARCH AND DEVELOPMENT COSTS IN THE AUTOMOTIVE DIVISION

 

 

€ million

 

2008

 

2007

 

2006

 

2005

 

2004

Total research and development costs

 

5,926

 

4,923

 

4,240

 

4,075

 

4,164

of which capitalized
development costs

 

2,216

 

1,446

 

1,478

 

1,432

 

1,501

Capitalization ratio in %

 

37.4

 

29.4

 

34.9

 

35.1

 

36.1

Amortization of capitalized development costs

 

1,392

 

1,843

 

1,826

 

1,438

 

1,134

Research and development costs recognized in the income statement

 

5,102

 

5,320

 

4,588

 

4,081

 

3,797

The Research and Development function employed 22,821 people (+5.3%) Group-wide at December 31, 2008, corresponding to 6.2% of the total headcount. This figure includes the staff at the vehicle production investments Shanghai-Volkswagen Automotive Company Ltd. and FAW-Volkswagen Automotive Company Ltd. These companies are accounted for using the equity method.

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