The flagship Audi division of Volkswagen is set to augment its investment on whipping up new models, manufacturing plants and technological advancements over the next five years to fortify its aim of overtaking compatriot BMW as the world’s biggest producer of luxury cars.
Audi funnels in 40% operating profit at Volkswagen quipped that it will pour in manufacturing car operations worth $2.44-billion (€2-billion) to a record-setting $29.28-billion (€24-billion) until 2019.
The bulk of the spending which is pegged at 70% will be used in coming up with new models and discovering new technological breakthroughs like the emission-cutting plug in hybrid cars. Audi is also developing electric cars to keep abreast with its rivals BMW and Tesla Motors.
More than 50% of the funds are intended for German car plants that are based in Ingolstadt and Neckarsulm, which is ample enough in producing 1.34 million vehicles for nine (9) months.
Chief Executive Rupert Stadler has said that the company’s main concern is sustaining its growth and this is the reason why the company has poured in immense investments in the innovative segments of electric mobility, connectivity and lightweight construction.
Audi is also setting its sight on increasing its current model range of 50 to 60 by the year 2020 and will pour in excess of $1.22-billion (over €1-billion) in erecting new car plants in South America (Mexico and Brazil).
Last year Audi has announced that its budget was set at €22 billion while Volkswagen as a whole has disclosed that its budget until 2019 is €85.6 billion which is a bit higher than the previous year.