The flagship Audi division of Volkswagen (NASDAQ:VLKAY) is prepared to invest at least $2.44 billion on the new models, manufacturing units and technological advancements. This will be done in a course of five years in order to give a strict competition to its compatriot BMW. This will also hail Volkswagen as the world’s biggest manufacturer of luxury cars.
The colossal investment will be done until 2019. This is certainly a record investment and it will help Volkswagen comes out as a strong car manufacturer in the market. 70 percent of the investment will be used in shaping the new models and helping innovations like emission cutting plug in hybrid cars. Audi has also planned to bring out the electric car version in order to keep up with its rivals BMW and Tesla Motors.
Of all the investment, more than 50 percent is intended to be spent in German car plants based in Ingostadt and Neckarsulm. This investment would be enough to produce at least 1.34 million cars in a matter of 9 months.
The Chief Executive of the company, Rupert Stadler stated that the main concern of the company lies in sustaining its growth and this is a major reason for the company to invest a colossal amount of money in the innovative segments.
The current model range of Audi is also set to be increased to 50 to 60 by the end of the year 2020. The company is set to invest $1.22 billion in creating new plants for car production in South America as well. It was last year that Audi announced its budget of 22 billion Euros for the project. However, Volkswagen has revealed that the budget to be used for investment until 2019 is going to be 85.6 billion instead.