Audi mulls expansion, to invest 24 bn euros in 4 years

Ingolstadt , PTI | Updated : 10 March 2015, 06:32 PM

German luxury car maker Audi plans to invest 24 billion euros (about Rs 1.61 lakh crore) over the next four years to enhance its global production network, including two new plants in Mexico and Brazil, and launch new models.

“In 2014, we invested 4.5 billion euros, one quarter more than in the previous year. By 2019, we will invest another 24 billion euros,” Chairman of the Board Management of Audi AG Rupert Stadler told reporters.

The focus will be on technical innovations and new models, he added.

All investments would be funded out of cash flow from operating activities.

“More than 70 per cent of this investment will flow into new technologies and models,” Member of the Board of Audi AG Axel Strotbek said.

The investment will also go into strengthening production centres across the globe, including new plants in Mexico and Brazil, he added.

Besides, the company will begin its product introductions from this year itself by introducing the new Q7, new R8 and new A4 family.

The maker of popular luxury models like Q5 sports utility vehicle and A4 sedan, aims to add another eight new models to take its total tally of products to 60 by 2020.

“The new models Audi Q7, R8 and A4 are the highlights of our model initiative in 2015,” Board of Management Member Ulrich Hackenberg said.

On future product launches planned by the company, he said: “In early 2018, we will launch a battery-powered sports activity vehicle in the large premium segment with a range of more than 500 kms.”

This vehicle will be built on the second generation of the modular longitudinal platform, he added.

Further, as part of its global growth plans, the company intends to hire more than 6,000 new employees across various global markets in the current year.

“This year, we plan 6,000 recruitments: 2,000 at our international sites and around 4,000 in Germany,” Stadler said.

At present, the Ingolstadt-based company employs over 80,000 people worldwide. It sold a total of 17.41 lakh Audi brand vehicles last year, an increase of 10.5 per cent over the units sold in 2013. 

First Published: Tuesday, March 10, 2015 06:28 PM
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