The Audi division of Volkswagen AG reportedly has plans to invest €22 billion or $30.3 billion through 2018, and part of the plan will be launching cars such as electric autos to gain the top spot of the premium market. In a statement made today by the second-biggest maker of luxury cars in the world, 70% or €15.4 billion of the planned capital spending will go towards the development of new car models and technology. The Ingolstadt, Germany-based carmaker also said that it is aiming to sell 2 million cars and sport-utility vehicles yearly after it achieves a goal of shipping 1.5 million autos this year, which is two years ahead of its initial plan.
Chief Executive Officer Rupert Stadler said in the statement, "We are now decisively steering toward our next milestone. This is why we're keeping our foot on the gas pedal regarding investments."
Bloomberg in its report pointed out that the investment plan is equivalent to the automaker spending €4.4 billion annually, which was a slight increase to its original plan of investing €4.3 billion annually on new models and production capacity expansion. Moreover, the report said the unit of Volkswagen is eyeing to beat Bayerische Motoren Werke AG, or BMW from its top spot as the biggest luxury-car producer in the world by the end of the decade. The investment plan of Audi is part of Volkswagen's investment program worth €84.2 billion in order to succeed General Motors Co and Toyota Motor Corp in global sales.
Audi revealed its plans to increase its current product range from 49 to 60 models by the year 2020. The carmaker also said today that the third generation of its TT coupe is set to be auctioned off next year, and will be joining its A3 Sportback's newly-introduced electric and natural gas-powered variants. Audi also said that it will also be adding its SUV lineup in 2016 with the subcompact Q1. In addition to upgrading its plants in Germany, Audi also intended to increase production in China, Brazil and Mexico.
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