Audi to spend $29 billion to develop tech and expand production, overtake BMW

Article by Andrew Christian, on December 30, 2014

Audi intends to invest EUR24 billion ($29 billion) to develop technology and expand its production as it bids to surpass BMW as the best-selling luxury brand in the world by 2020. Around 70 percent of that amount, or about EUR16.8 billion, is allocated to new models like the Q1 subcompact SUV.

Audi chief executive Rupert Stadler said in a statement that the carmaker is making large investments in the areas of electric mobility, connectivity and lightweight construction. Audi is planning to offer 60 models by the end of the decade from just around 50 today.

Company's EUR24-billion budget is part of parent Volkswagen's EUR85.6 billion investment plan aimed at becoming the world’s largest carmaker in terms of sales. Audi intends to invest around EUR4.8 billion annually on new vehicles and expanding production capacity.

Audi chief financial officer Axel Strotbek remarked that despite the surge in total investment, the carmaker will “keep a watchful eye” on upcoming challenges and exercise the required cost discipline.

The German carmaker is expect to post sales of over 1.7 million vehicles this year and has already trimmed the lead of BMW in terms of global deliveries.

In the first 11 months of 2014, the gap between the two German carmakers was just 42,600 cars, compared with 54,600 cars in the same period in 2013. Audi is already outselling BMW in China and Europe and intends to do the same in the United States.

The carmaker unveiled Prologue concept car in Los Angeles in November to showcase a more aggressive styling. Audi also intends to launch an electric crossover in the US in 2017 and is building a plant in Mexico that will assemble the Audi Q5 in 2016 for America. [source: Bloomberg.com]

Topics: audi, bmw

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016