Even as European markets continue to weaken, Audi still sets out to widen its market share by continuing to spend on new vehicles, plants and technology. Volume manufacturers have felt the pressure to lay off its employees and close down their factories. Audi said last Thursday that it will spend 13 billion euros ($17.2 billion) through 2016 on its worldwide operations, with over half or 8 billion intended for its two primary plants in Ingolstadt and Neckarsulm.
These investments are meant to sustain Audi’s expansion in foreign territories as Audi establishes plants in Mexico and China and adds to factories in Hungary and China. In a recent interview, Chief Executive Rupert Stadler said that it has no plans of slowing down since it anticipates that after the crisis, it will be the time for another recovery.
On Nov. 23, parent VW said that it will invest 50.2 billion euros on products, plants and equipment during the next three years as it attempts to overtake Toyota Motor Corp. and be the biggest auto maker in the world by 2018. Due to these increase in investments for products and technology, VW will be able to consolidate its lead over struggling rivals PSA Peugeot Citroen and Fiat, which have delayed or suspended whole vehicle programmes, engine technologies and platform revamps while contending with the high fixed costs in a weakening European market.
Audi, which seeks to increase worldwide deliveries to more than 2 million cars and SUVs by 2020 as it seeks to steal the luxury sales title from BMW, said it will spend more than 10.5 billion euros over the next four years for the upgrade and expansion of its product lineup and new technologies like lightweight construction and electric drives.