In the luxury car market, Audi is no doubt near the top of the list, but it still plays third fiddle to Mercedes-Benz and BMW, and Audi is set to do something about that. For this the company announced it will invest a total of €13 billion - around $17 billion at the current exchange rates - through 2016. Most of these investments will be used to address the development of new products and technologies, as well as the construction of new plants.
From the $17 billion, a total of $13.9 billion will be invested in the development of new models and in the modernization of the current models in Audi’s lineup. This will include financing core areas of expertise, such as lightweight design/construction and electric mobility, and also in making regular engines even more efficient.
Most of the money will be invested in the German sites of Ingolstadt and Neckarsulm in the next five years, but also in the expansion of the site in Győr, Hungary.
All of these investments are part of Audi’s attempt to hit a sales number of more than two million vehicles annually by 2020 and to become the No. 1 premium brand in the world.
Click past the jump to read Audi’s presser.
Despite challenging economic circumstances, Audi is maintaining its ambitious capital-expenditure program. The Audi Group plans on investing €13 billion through 2016 to continue resolutely maintaining its course for growth as per its Strategy 2020. Expenditures will primarily address the development of new products and technologies as well as the construction of new plants. Nearly €8 billion will be invested in the German sites of Ingolstadt and Neckarsulm.
Audi is maintaining its robust capital-expenditure program to the tune of €13 billion in coming years. “We will keep investing large sums to pursue our growth strategy,” explains Axel Strotbek, Member of the Board of Management for Finance and Organization at AUDI AG. He added that the Group wants to spend more than €2 billion every year on new products and technologies.
All in all, more than €10.5 billion is to be allocated through 2016 to modernizing and expanding Audi’s portfolio of products as well as financing core areas of expertise such as lightweight design/construction and electric mobility. Conventional powertrains are to be rendered even more efficient.
Nearly €8 billion has been earmarked just for the German sites of Ingolstadt and Neckarsulm in the next five years. In addition, expansion of the site in Győr, Hungary will be completed in 2013. Audi is building a body-manufacturing shop, a paint shop and a press shop in Győr. The Group is expanding capacities in China, as well. Automobiles with the four rings are expected to begin rolling off the assembly line in Foshan, China in early 2014. Moreover, a plant in San José Chiapa, Mexico is scheduled to start producing Audis by 2016.
“The expansion of our global manufacturing infrastructure will help us to continue growing,” says CFO Strotbek. Audi wants to sell more than two million vehicles annually by 2020 to become the perennial Number One premium brand in the world. To this end, Audi hopes that its innovations will attract customers everywhere to the brand. Last but not least, the company seeks to appropriately balance financial success with social and environmental concerns to further consolidate its unsurpassed image worldwide.