Audi plans massive investments
December 31, 2007 by Alborz Fallah
Audi is a member of the Volkswagen group which also includes the likes of Porsche, Bugatti and Lamborghini. Together they have recently declared their intentions to beat Toyota as the number one manufacturer of vehicles worldwide. In order to do that though, a great deal of investment is required.
Audi alone has today pledged a total of 10.6 billion euros ($17.75 billion AUD) in investments from 2008 to 2012. Out of that 10.6 billion, almost 75 per cent will go straight into new products, with models expected to rise from the current 25 to 40 by 2015.
“Investment in new models, product innovations and core competencies is a necessary requirement for the successful continuation of Audi’s growth.” Axel Strotbek, Member of the Board of Management at AUDI AG for Finance and Organization said.
Previously AUDI had planned to invest 9.8 billion euros from 2007 to 2011.
Next year should see the introduction of several new models such as the Audi A3 Cabriolet, the Audi A4 Avant and the Audi Q5, among others.
Audi will also upgrade and modernise its current production sites. More than 1.1 billion euros will be spent on its plants in Ingolstadt and Neckarsulm. Of this total, 720 million euros have been allotted to Ingolstadt, with 400 million euros going to Neckarsulm. Investment in new products and structural measures will take priority.
Australia is not left out either, Audi Australia Pty Ltd plans to invest $50 million in a new ‘lighthouse’ facility to open in Sydney in 2009 with a further $100 million expected from the national dealer network over the next 3 years.
Print it: 
Pitty Tonyn is heading for the Summernats cause he would have something to say on the subject.
Thats a hell of a lot of money their investing!
I believe that it could soon to become the Porsche group.
According to an article I read – which from memory was on this site couple of months ago; Porsche was/is planning to increase its share in.. or even take over Volkswagen and thereby control VW Audi Bugatti and Lamborghini group
Apparently Volkswagen is losing “substantial” amounts of money [nearly as much as Ford].. and Porsche believes it’s time something was done about it.. possibly reduce the groups line-up and share even more platforms or componentry
So where this money is going to come from who knows?
Dead right about Porsche Wheelnut.
Good in depth article in Taipei Times here: (if post allowed)
Titled “Porsche & vw one happy family?”
http://www.taipeitimes.com/New.....2003395065
I for one support what VW wants to do. Infact, i wish them all the best of luck but wanting do it and actually achieving the resuts are very often two very different servings.
One thing though and that is VW need to put a greater effot into quality control measures because statistically thier record is not the best.
That said – people must relise that just about every other manufactuer have their FORWARD plans aswell and Toyota has most certianly let it be known thier future ambitions aswell
All in all – excellant motivation by VW but it may prove to be much harder defeat then anticipated… but then again – it may not !!
I guess the impact people must also consider is how will affect other brands particularly the American trio if VW goes after not huge numbers. It gotta come from somewhere and no one particular brand will suffer alone.
Oh bloody hell………can you post anything without the word Toyota in it? Geez mate move on!!!!and Go Audi!!!!!!!!
Bavarian – it’s cool dude … take it easy.
I think VW’s plans are great and if they go about it in the proper manner then i also believe it is achieveable … perhaps.
All i am saying is that it just may prove to be a lot harder then they probably anticipate but then again – have alook at some of these new Audi’s – awesome at the very least.
Without being offensive (and i am not) i like it because it’s great to see other companies going for it without hearing about General Motors or Ford.
But then again you can probably say the same thing about that company i can not name but haa – it’s all cool.
On a more civil note – do you believe it is within VW’s reach or at least within the time frame they have indicated ??
And moving further along from that – GM is not exactly gonna roll over easily themselves though are they so if you think about it … VW will have to conquer GM, Ford and Toyota and that would a mammoth task within itself.
I believe that if any company will be able to pull it off its VW. I mean the germans are known for their dedication.
Afterall when Porsche floated the idea of the Cayenne most people asked Why? Porsches answer was Why not! and now it’s their second best selling vehicle behind the 911
Then theres the world’s second Fastest car the Veyron. seemed like a weird idea to bolt 2 v8s together side by side on a common crank- but the germans made it work.
The American trio are already under threat form Japan and Europe.
GM are expected to hold a strategy meeting this month where they will work out plans for the next 5 years or so which could involve closing plants and making more cars outside the US [FWDs in Europe and RWDs in Oz or Canada].
There are even reports of the owners of Chrysler [Cerebrus] talking to Ford about a possible Merger. Mind you Fords main Problem appears to be Ford Jr – their CEO
There a re anumber of other companies re-thinking their strategy. It’s as if they have only now started to realise the world is changing.. only now are they looking at smaller cars; alternative fuels etc
Problem is technology and the environmnet changes overnight whereas the R&D of a new car can take years
which is why I expect over the coming years there will be alot of downsizing of the range of cars on offer; sharing platforms etc; and quite possibly a number of mergers like the Porsche group for better use resources & technology.
Well I think if the likes of BMW and Mercedes are looking at getting hitched cause they can feel the pressure VW are having the affect they want!
In order to achieve their plans Audi/vw/porsche will have to do something they may find very difficult.
They have to have a “Cheap & Cheerful” car like the Mazda 3 or Corolla to sell to the public.
At the moment you can’t buy a VW at anywhere near the price of these two, let alone an Audi.
The world’s buying public cannot all afford a Golf/Jetta but they can (and do) all afford the boring Corolla and the nice Mazda 3.
Merc & BMW getting hitched. Not an ice cube in hells chance. Why would they want to.
I think its more likely Porche will amalgamate with VAG to gain the Euro required reductions in CO2 outputs.
Nothing wrong with Toyota being the biggest. Someone got to be, Eh MIKKA
No Name………………because it cuts the cost of development down if they merg………go to auto blog and read the update on it!!!
Gee mate good to see you associate with grandness ……Mikka
hahahaha……
Not just the biggest but more importantly – the wealthiest and argueably probably ‘currently’ the most influancial as it seems all the manufactuers now wonna take on Toyota.
GM, Ford, Mazda and now VW have all set thier sights on the BIG T so if they arn’t having an impact on the global industry then what/who is …
No Name – Porsche is already a part of the Volkswagen Auutomotive group.. Remember the Touareg and Cayenne share the same platform engine driveline etc..
Things could change though as there are reports that Porsche is looking at increasing its share in Volkswagen which will enable them to take control of the group..
Because according to the German media over recent months Volkswagen is apparenly in a worse finacial situation than GM or Ford [US]
Whereas Porsche and Audi [which is also a VAG member] are in a better financial position.. in the same why Ford [OZ] and Holden are in relation to their parent companies.
Quick Quiz
Which car is more desirable?
a] Toyota Corolla
b] Toyota Yaris
c] Daihatsu Charade
d] Daihatsu Copen
e] Volkswagen Golf GT1
f] Audi A3
g] Audi A4
h] Porsche 911
- Don’t forget just as GM own Daewoo Toyota owns Daihatsu!
Reckless – I agree that there are those in the world can’t afford a Golf [GTi]; Yet they could go for either the VW Polo 1.which is in the same price range as the Corolla
[19-24k]..
and still get proven german quality; engineering; style; safety etc
Even if they added all the options it would still be cheaper than the top of the range Rolla
yes … but Diahatsu is not known for building crap cars. infact, Diahatsu has probably one of the best reputations for putting together a worthwhile light runabout hence why it is owned by the BIG T.
Quick Quiz : Which is more desirable
a. Holden Barina
b. Holden Viva
c. Holden Epica
d. Holden Captiva.
e. Holden Tigra
f. Holden Omega
H. Toyota Hilux 4×4 SR5
I. Toyota Prado Grande
J. Toyota V8 (petrol / Diesel) Landcruiser Sahara
k. Toyota ZR6 Sportivo
l. Toyota Aurion Presara
m. TRD Aurion
n. TRD Hilux
o. Lexus IS250 Luxury or Sport
p. Lexus IS-F (very soon)
q. Lexus GS430 (very soon GS460)
r. Lexus GS350hl
s. Lexus RX350
t. Lexus RX350hl
u. Lexus LS460
v. Lexus LS600hl
w. Lexus LX570
Don’t forget – the next generation Toyota Supra, AE86, V6 Blade, more TRD derivatives and the Lexus GS-F and LF-A will be on your door step soon enough.
wheelnut – so what is Ford’s and Holden’s answer to the Polo 1 then … surely not the Focus, Viva or Astra.
Let me remind you that neither the Focus or the Astra scored t owell in the Leaked Australian Quality Survey.
Feel invited to re-peruse those results when convenient to yourself.
May i also remind you that VW actually has a relatively expensive service regime here in Australia and the actual covered ownership expense is quite notably more then that of the Corolla, Mazda2, Focus, Astra, Tidda etc.
Suggesting these cars is one thing but actual total covered ownership experiance is yet another. Most people by small cars because not only are they relatively cheap to purchase but cheap to maintain aswell.
Generally if they are wanting something more expensive/luxurious then usually the BMW1 series or the IS250 comes to mind.
You obviously don’t get the meaning of the term Quick Quiz.
The trem “quick” means it will take a relatively short amount of time 1-2 minutes max.
Wheras I could virtually write an essay on the good and bad points of the various options / possible answers you have listed.
That’s my point.. Daihatsu build cheap reliable efficient runabouts as do Daewoo. There would probalby be equal number of old Daihatsus and Daewoos still going around.
Just as Daihatsus are essentially Toyotas as they use Toyota engines – Daewoos are Essentially Holdens as they use Holden Engines..
Their build quality fit and finish is pretty much the same as is their poor crash test safety rating – which is why they are so cheap.. you get what you pay for
Therefore; for you to criticise a budget priced car [Daewoo] yet heap praise on a car of similar standard [Daihatsu] particularly in terms of quality and reliability.. is a case of the Pot calling the Kettle Black
Fords answer to the Polo is the German Engineered Fiesta which is a great little performer – particularly the XR4. Holdens answer would be either the Astra CD or CDX Hatch.
Focus poor quality?
Someone had better tell the Britts they bought more Focus’s last year than ANYTHING else! Learn’t that from that Richard Hammonds new interactive game we were discussing last night Wheelnut!