Injection: VW’s Audi to push up investment by $2.44b

Intends developing new models and electric cars to rivals

BERLIN: Volkswagen’s flagship Audi division is to increase spending on new models, plants and technology through 2019 to push its goal of surpassing German rival BMW as the world’s largest luxury-car manufacturer.

Audi, which contributes 40 percent of operating profit at Europe’s biggest automotive group, said it will push up investment in car-making operations by €2 billion ($2.44 billion) to a record €24 billion over the next five years.

Seventy percent of spending will be assigned to developing new models and technologies such as emission-cutting plug in hybrid vehicles. The brand is also working on purely electric cars to catch up with BMW and Tesla Motors.

More than half of the funds will be spent on Audi’s two German factories in Ingolstadt and Neckarsulm which accounted for half the carmaker’s nine-month output of 1.34 million autos, said Audi.

“We place top priority on sustainable growth,” Chief Executive Rupert Stadler said. “That’s why we are making large investments in the innovative areas of electric mobility, connectivity and lightweight construction.”

Audi is aiming to expand its model range to 60 from currently 50 by 2020 and is spending over 1 billion euros on new factories in Mexico and Brazil.

Under its previous budget drawn up a year ago, Audi announced investments of €22 billion over the 2014-18 period. Parent VW in November unveiled auto investments of €85.6 billion through 2019, slightly more than a year earlier. 

Published in The Express Tribune, December 28^th, 2014.

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