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Audi to invest 13 billion euros to overtake BMW & Mercedes

 Audi to invest 13 billion euros to overtake BMW & Mercedes
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
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December 29, 2012 1:39 pm
 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
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December 29, 2012 1:37 pm
 eitanros eitanros
First 2 billions to replace the Q7...
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December 29, 2012 11:35 am
 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.
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December 28, 2012 11:29 am
 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.
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December 28, 2012 4:22 am
 alihijazi alihijazi
blablablabla ... all car makers will devote to create efficient engines and excellent designs....
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December 28, 2012 3:37 am
 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.
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December 27, 2012 10:53 pm
 porsche6616 porsche6616
This comment has been hidden due to excessive poor ratings. click here to show
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December 27, 2012 5:58 pm
 Ubbe Ubbe
Still just a rebadged VW.
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December 27, 2012 5:12 pm
 gooniz gooniz
I would never buy volkswagen or Jaguar even if they gave me a life time warrenty on the car.
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December 27, 2012 4:48 pm
 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.
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December 27, 2012 4:46 pm
 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
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December 27, 2012 2:35 pm
 memexe memexe
lower costs/maintain quality = win over bmw and benz
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December 27, 2012 2:20 pm
 hunker7 hunker7
excellent!
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December 27, 2012 2:12 pm