Audi to invest 13 billion euros to overtake BMW & Mercedes

2012 Audi A5 facelift 13.07.2011
2012 Audi A5 facelift 13.07.2011

Company promises new models and more efficient engines

Audi has made bold claims about their desire to become the world's largest luxury automaker and the brand is finally putting their money where their mouth is.

As part of a €13 ($17.1) billion investment, the company will develop a variety of new models to battle BMW and Mercedes. Nearly €10.5 ($13.9) billion will be allocated to the development of new vehicles, while roughly €8 ($10.6) billion has been earmarked for the company's plants in Ingolstadt and Neckarsulm. In addition to the two aforementioned facilities, Audi will expand their assembly plants in Gyor, Hungary and Foshan, China as well as open a new factory in San José Chiapa, Mexico.

Besides investing in manufacturing, Audi will devote a lot of resources to creating more efficient engines, improving electric mobility and developing lightweight design/construction techniques.

Source: Audi

Audi keeps its foot on the gas pedal: €13 billion in capital expenditures through 2016

  • Ambitious capital-expenditure program to continue
  • Axel Strotbek, Chief Financial Officer: “We will keep investing large sums to pursue our growth strategy.”
  • New Plants in Gy?r (Hungary), Foshan (China) and San José Chiapa (Mexico)

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 Gy?r, Hungary will be completed in 2013. Audi is building a body-manufacturing shop, a paint shop and a press shop in Gy?r. 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.

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Comments (38)

Joao Oliveira Joao Oliveira
Do you people why nobody says Porsche, Lambo and bentley are rebadged VW? Lambo-Lambo platfortm......... Bentley-Bentley platform........ Porsche-Porsche platform...... Audi-VW Platform...... If you test drive a Audi and VW from the same segment, you can feel the similarities in the handling, ride, and feel for the controls, despite the audi being more refined than the VW
Dec 29th, 2012 8:39pm
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Ivo_205 Ivo_205
I disagree. The latest Bentley Continental uses Audi's 4.0 twin turbo V8 but it does not feel the same as in the S6. The same applies when using Audi's MQB . People assume using a shared standard platform means all cars built on that platform will drive identically, but it is only there to increase build efficiency. It actually allows for a higher model personalisation and differentiation as paradoxically as that may sound.
Dec 31st, 2012 11:16am
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Garais877 Garais877
thats right
Dec 31st, 2012 2:09pm
0 0
Joao Oliveira Joao Oliveira
Platform and engine are different things... I'm sorry but I drove some VW and audis and at least 5 year old or more from the same segment drive similar... different damping and some different stuff, but the taste is similar... Golf, Leon, A3, Fabia, both feel similar to drive... the same with A4, passat, Octavia
Jan 6th, 2013 10:52pm
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Ivo_205 Ivo_205
No need to be sorry ;-). I haven't tested all VW cars but form my experience an A6 drives very differently to a passat. The BMW 6-series gran coupe is based on the 5-series platform but drives completely differently.
Jan 7th, 2013 11:07am
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Joao Oliveira Joao Oliveira
Audi is a VW with a bit more refinement... Lambo and bentley vs VW are not much like Audi and VW, because audi's platforms, are all based on VW cars... And if you test drive a VW passat and a A4, a Golf and a A3, the audi feels more posh, but the ride, handling and feel of the controls have a similar taste despite de diferent dampening
Dec 29th, 2012 8:37pm
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eitanros eitanros
First 2 billions to replace the Q7...
Dec 29th, 2012 6:35pm
0 1
ElioBorrero ElioBorrero
Guys people that "think" an Audi is a great car are just flat worong, YES Audi is 44% a VW yet they make for almost 50% of VW Group profits 'cause they share a heck a lot of stuff with VW,Lambo (R8 with a V10) etc etc, BMW and MERC are diferent in that aspect specially BMW, an Audi A3 is a Golf/GTI, A4 share parts etc with other VW, their SUV are based out of VW Toureg and the list goes on and on,Audi is to VW what LExus is to Toyota, Infinity is to Nissan, Acura is to Honda.... I worked with VW and BMW for many years, they are "decent" cars but BMW is the pinacle in sport and MErc in Luxury, Audi? is a VW period.
Dec 28th, 2012 6:29pm
4 2
eitanros eitanros
maybe you are reluctant to see that common brands such as Honda, Toyota, VW have come very close to the german premium brands in terms of pure technology (i'm not talking about total refinement in terms of premium feel - interior materials, NVH, styling). the fact that Toyota builds the technology for Lexus which competes very well with BMW and Mercedes proves that the differences today between common brands and premium brands exist mainly in the premium feel and refinement. in fact, Toyota is developing its own transmissions whereas BMW and Mercedes outsources development to ZF. to the point, VW technology is not that far from Mercedes and BMW, if any, so as Toyota and Honda's.
Dec 29th, 2012 6:45pm
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Garais877 Garais877
VW tech??? all vw tech comes from Audi, without Audi vw had a hard time now and Audi tech is far ahead of Merc and BMW...
Jan 3rd, 2013 6:12pm
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Thedamned Thedamned
@eitanros If I recall VW actually invests heavily in R&D. I think they invest in and have the biggest R&D department in the whole Europe taking account all industries. So much of that know-how is shared with Audi, which propably too has its own R&D department.
Jan 4th, 2013 5:38pm
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ifudge ifudge
Rather than develop "a variety of new models" they should just concentrate on making them better to look at and to drive. If they want to catch up to MB and BMW then they have to make owning an Audi just as rewarding - it's quality, not quantity.
Dec 28th, 2012 11:22am
3 2
efgh efgh
Dec 28th, 2012 3:14pm
0 1
alihijazi alihijazi
blablablabla ... all car makers will devote to create efficient engines and excellent designs....
Dec 28th, 2012 10:37am
3 0
SouthAfrica SouthAfrica
I would never buy a VW or an Audi when a Porsche. Just wont. If theres anything I would go for within this group is a Porsche since they are reasonably priced. Audi should fire their entire designers except for the guy who designed the A5. Unappealing.
Dec 28th, 2012 5:53am
4 6
porsche6616 porsche6616
tesla is going to win all these 3
Dec 28th, 2012 12:58am
3 13
Ubbe Ubbe
Still just a rebadged VW.
Dec 28th, 2012 12:12am
8 11
Garais877 Garais877
you mean VW is just a cheaper Audi made out of cheaper materials and tech...
Dec 28th, 2012 4:09am
5 5
Ivo_205 Ivo_205
No it isn't. Just like Porsche is not a rebadged VW. Just like Lamborghini is not a rebadged VW. Go take a test drive.
Dec 28th, 2012 10:35am
8 2
gooniz gooniz
I would never buy volkswagen or Jaguar even if they gave me a life time warrenty on the car.
Dec 27th, 2012 11:48pm
8 11
Teddy Teddy
You actually have to be able to AFFORD something before you can buy it. Go back to your hyundai
Dec 28th, 2012 3:41am
6 6
Ivo_205 Ivo_205
That is very nice of you to share this personal sentiment. Only a few million people disagree but I take it that's because they do not share your superior intellect and unique insight in the automobile industry.
Dec 28th, 2012 10:33am
5 3
gooniz gooniz
glorified VW nothing more and nothing less. a car that will break down on you every month and their reliability records is a joke. Audi car dealers have declared lots of problems in the middle east due to the fact that their cars cant handle the excessive heat and humidity of the desert (unlike BM and Mercedes). you can check the reliability records of Audi on every consumer report and the only thing you will find is (Poor + average) ratings. numbers dont lie and people who know cars will never buy volkswagens.
Dec 27th, 2012 11:46pm
9 11
Garais877 Garais877
give some real brake downs not just empty talking, whats the top 3 faults
Dec 28th, 2012 4:20am
5 5
Garais877 Garais877
glorified VW you say??? and a car that will break down on you every month and their reliability records is a joke??? right, so how you will explain that they have won LeMans 24h 12 out of 14 times??? and also 24h Spa, Nurb, and many more???? probabley that was a joke to they just cheated is thats what you saying??? :) yee right...
Dec 28th, 2012 4:27am
6 5
efgh efgh
so your argument is that they are reliable in racing events... so is citroen in wrc. the best car over there. how about citroen in real life though?... audi is NOT on a par with merc/bmw. and gooniz is correct. just go check the numbers, fanboy...
Dec 28th, 2012 3:11pm
3 3
Garais877 Garais877
Citroen in WRC does not race for 24h, so its not a big deal... we saw whats happened to Peugeot on 2010 when all 3 engine around same time blowed up...
Dec 31st, 2012 2:08pm
0 0
That's not true, the Audi A6 has been for many years always in the top 5 of most reliable cars by the Adac. Get the facts fanboy.
Dec 28th, 2012 3:10pm
2 2
Garais877 Garais877
Just try Google this - Audi A4 Best of All Classes in DEKRA used car report
Dec 28th, 2012 7:25pm
0 1
Garais877 Garais877
just check google this - Audi A4 “Best of All Classes” in DEKRA Used Car Report
Dec 28th, 2012 7:28pm
0 0
Garais877 Garais877
most reliable cars of 2012 is Audi A4
Dec 28th, 2012 7:35pm
1 0
MattAAron MattAAron
They'll have to come up with better designs if they hope to compete. Don't get me wrong, Audi designs are nice, but no where near BMW/MB imo
Dec 27th, 2012 9:35pm
10 9
memexe memexe
lower costs/maintain quality = win over bmw and benz
Dec 27th, 2012 9:20pm
5 4
VytautasDz VytautasDz
and higher reliability with simplicity = victory
Dec 27th, 2012 9:37pm
5 4
hunker7 hunker7
Dec 27th, 2012 9:12pm
6 5
Garais877 Garais877
try google this - Audi A4 Best of all Classes in DEKRA used car report
Dec 31st, 2012 2:15pm
0 1