Audi revealed its plans to invest in fixed assets for the years 2009 until 2012. This marks its continued investment not just in new products but in innovative technologies and is expected to reach a total of 7.3 billion euros.
Audi Group said that it intends to continue this for the next few years. An estimated 80%, or about 5.9 billion euros, will be allocated to product development where the brand expects to enhance its standard drivelines.
It will also include the development of new models specifically for the hybrid and electric segment. Audi expects to increase its portfolio from 34 models to 42 by 2015. By next year, the brand intends to launch new series models.
In 2010, it had introduced four models which were the R8 Spyder, and the A1, A7 and A8. By the end of the same year, it launched its Audi Q5 Hybrid, its first-ever full hybrid car. The Q5 Hybrid is slated to enter the market in early 2011.
CFO Axel Strotbek shares that with this new investment, the brand will be able to use its cash flow from operations to fund its planned investments. Aside from product development, Audi will also invest a total of 3.8 billion euros for its two German plants.
An estimated 1.3 billion euros will be invested on its Neckarsulm plant which will focus on testing new engine functions and on the A6, A7, and A8 models.
Meanwhile, the Ingolstadt will receive an investment of about 2.5 billion euros, an amount to be used for the new emissions center and transmission center. It will also focus on building the structures for its A3 and A4 models plus the stampings tools for the A1.