Audi Increases Investment By $2.5 Billion to $29 Billion - Focus On New Models, Technologies and Production Sites

FRANKFURT— Audi AG , the premium car brand owned by Germany’s Volkswagen AG , said Saturday it plans to invest €24 billion ($29.3 billion) over the next five years in new models, technologies and production sites, €2 billion more than in the previous planning period.

The investment program is part of a plan announced by parent Volkswagen last month, an Audi spokesman said. Volkswagen said in November it would boost capital investment to €85.6 billion from 2015 to 2019, about €1.1 billion above previous plans, largely driven by higher development costs associated with upfront investment in new technology needed to reduce CO2 emissions.
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MDarringer - 12/28/2014 1:54:17 PM

+3 Boost

I say "Pride cometh before a fall." Given the stream of styling duds they are churning out and given how heavily incentivized their current line up is to get sales happening, I see collapse rather than expansion if we're looking 10 years out.

GermanNut - 12/29/2014 1:42:26 PM

0 Boost

Heavily incentivized? Then what would you call BMW and Mercedes-Benz's strategy? They both have a lower operating margin than Audi.

Styling duds? Don't jump the gun. The Q7 isn't out yet so it remains to be seen how it will sell.

I think many people are underestimating how awesome it will be to drive with its huge weight reduction, lower center of gravity and new MLB platform. Not to mention that the Q7 is also packed with the latest technology and safety systems.

As for the rest of the lineup, data shows Audi is doing very well. Globally Audi is breathing down BMW's neck for the top spot and is showing strong growth in the U.S. while maintaining hugely impressive sales in China.

I think your 10-year prediction is completely off-base and Audi's future sales results will prove it.

Jaybrn - 12/29/2014 7:43:37 AM

+1 Boost

Audi could start by bringing all it RS models to the US

MDarringer - 12/29/2014 10:36:11 AM

+1 Boost

Agreed.