Volkswagen’s flagship division Audi is looking to increase the amount that is spent on manufacturing plants, new models as well as technology, starting from 2015 to 2019. This is a conscious effort of the automobile maker to overtake its German rival BMW as the largest luxury car manufacturer in the world. Audi contributes approximately 40 per cent of the operating profit at the biggest automotive group in Europe. It has plans to bolster its investment in car manufacturing and other operations by a margin of 2 billion euros, which when converted come to around USD 2.4 billion. In the next five year period, the company will hoist itself to a record 24 billion euros.
The manufacturer has also given a rough break-up of the investments. According to officials, seventy per cent of the investment will be provided for the development of new models as well as technologies such as plug-in hybrid models and the reduction in their emission. Audi is looking forward to catch up with Tesla Motors as well BME with respect to the development of electric cars. Audi also said that half of the funds will go behind the improvement of Neckarsulm and Ingolstatdt factories, which were the reason for half of the nine-month output of 1.34 units. Rupert Sandler the Chief Executive said, "We place top priority on sustainable growth. That’s why we are making large investments in the innovative areas of electric mobility, connectivity and lightweight construction."
Audi is currently the second largest luxury car maker in the world and is going for increasing its range of models from 50 to 60 by 2020. The company is also investing on the setting up of new factories at Mexico and Brazil by spending approximately 1 billion euros. The Ingolstatdt-based manufacturer has a plan of hiring nearly 850 more workers in Mexico. This will pave the path for the company to start the assembling procedure of Q5 utility vehicle in the country from 2016 onwards.
Audi had previously drawn up a budget a year back and had announced that over 22 billion euros would be invested over the 2014 to 2018 period. Volkswagen had unveiled vehicle investments of 85.6 billion euros till 2019 approximately a year ago, in spite of the fact that the car maker was looking forward to some cost cutting.
