Automotive

Published on December 19th, 2013 | by Daniel Sherman Fernandez

0

Audi Increases Spending To Chase Down BMW

Audi-S5_Sportback_2011_1600x1200_wallpaper_04

Audi will increase spending on new models, plants and technology in coming years as the carmaker steps up efforts to catch larger competitor BMW, people familiar with the matter said. The Volkswagen-owned division plans to spend more than 20 billion euros ($27.46 billion) on global operations through 2018, said the people on condition they not be identified because Audi’s spending plan won’t be published until Dec. 27.

That equates to over 4 billion euros a year, compared with 2.6 billion in the carmaker’s budget of December 2011. Planned investments will sustain Audi’s foreign expansion as the carmaker sets up factories in Mexico and China and eyes production in Brazil.

Audi plans next year for the first time to build more cars outside Germany than within the country. Audi aims to sell at least 2 million cars a year and overtake luxury-sales champion BMW by the end of the decade. The brand’s expansion is part of VW’s goal to overtake Toyota and General Motors as the world’s No. 1 automaker no later than 2018.

Higher spending at Audi follows an announcement by VW last month to shield vehicle-based investment from cuts in other areas, responding to sluggish auto demand.


About the Author

www.dsf.my is a service to the public and other website owners. www.dsf.my is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site www.dsf.my. While the information contained within the site is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. www.dsf.my is not responsible for the accuracy or content of information contained inside.



Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top ↑