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]

Topics: audi, bmw

If you liked the article, share on:

Comments

Recommended

Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
It has been six years since Lexus introduced the current generation of the CT 200h hybrid. For the 2018 model year, the current CT 200h lives through with some minor...
by - August 15, 2017
What happens when an auto company finds that a certain offering is not selling enough to make a good business case? Continuing to build and sell such vehicle would only...
by - August 14, 2017
It looks like that Audi is in the final stages of finalizing its new Audi Q8 sports utility vehicle. While the German premium carmaker has yet to reveal the looks...
by - August 14, 2017
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