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

Article by Christian A., 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]

If you liked the article, share on:

Topics: audi, bmw

Comments

Recommended

Last year was probably one of the busiest years for the European New Car Assessment Programme, with a total of around 70 cars tested. But amongst that huge pack of...
by - January 16, 2018
For the longest time, women in Saudi Arabia were restricted from doing what men were able to do freely. And one of the most pressing issues was driving. In the...
by - January 16, 2018
Automakers that have teamed up with Formula 1, like Mercedes-AMG, develop the coolest road-going supercars just like the Project One. Aston Martin and Red Bull, on the other hand, have...
by - January 15, 2018
There is nothing more exciting happening this month than the 2018 Tokyo Auto Salon - especially with all the concepts that are being uncovered. Apart from the Toyota GR Super...
by - January 15, 2018
The very first time we ever saw Bentley’s SUV, the Bentayga, was back in September 2015 when it came out with the impressive W12 engine. A year after that, it...
by - January 15, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries