Audi will raise investments on new models, plants and technology in the next few years as part of its bid to surpass rival BMW, people privy with the matter told Automotive News. Audi is planning to spend over EUR20 billion ($27.46 billion) on global operations through 2018 – which equates to over EUR4 billion a year.
The carmaker’s allotted budget of December 2011 was EUR2.6 billion. Auto Motor und Sport reported the size of Audi's investments on Dec. 12, 2013, citing chief executive Rupert Stadler. The investments will allow Audi to sustain its foreign expansion as it establishes sites in Mexico and China while seeking to build vehicles in Brazil.
In 2014, Audi is planning to build more cars outside Germany for the first time as it targets to sell at least 2 million cars annually.
Audi is aiming to capture the luxury car sales crown from BMW by the end of the decade. Audi's expansion is part of parent Volkswagen’s goal to become the largest carmaker in the world in terms of sales by 2018, surpassing both Toyota and General Motors.
The report of higher spending at Audi comes after VW disclosed in November that it will exclude vehicle-based investment from spending cuts in other areas to respond to slumping auto demand.