Audi plans capex of over 3 billion euros in 2016

German carmaker Audi is laying the foundations for future growth in 2016. In the coming financial year, the company plans to continue with its high levels of investment. Along with further process and cost optimisation, the planned capital expenditure is to amount to more than  3 billion euros (Rs 22,932 crore). Half of the planned investment will take place at the German sites in Ingolstadt and Neckarsulm. Furthermore, Audi will recruit additional experts in the field of future technologies once again in 2016.

The company intends to push forward with its growth strategy with the approved investment program in 2016: “We are continuing with our high levels of investment in future technologies to enhance the strong position of our brand,” said Audi CEO Rupert Stadler. The carmaker also plans to enter a new market segment with the Q2 model next year.

In addition, Audi will present the successor of the Q5 next year, thus continuing with the next chapter of its SUV success story. “A significant proportion of our investment is naturally in the field of alternative drive systems,” stated Stadler. In 2018, the first large‑series battery‑electric vehicle of the brand will be launched, based on the Audi e-tron Quattro concept. By 2020, Audi will expand its model range to include 60 different automobiles.

While Audi is consciously investing in new models and technologies, as well as in the expansion of its worldwide production network, CFO Axel Strotbek also sees potential for continual cost improvements: “With the current investment program, we obviously want to enhance the brand’s strong position, but at the same time, we aim to achieve additional financial scope by means of further process and cost optimisation.” According to Strotbek, the company will not save at the expense of its future, but every investment will be carefully examined. The Board of Management has therefore decided to postpone the construction of a new wind tunnel for one year.

Meanwhile, Audi continues to accelerate in the area of digitalisation. In early December, the company acquired a one‑third interest in HERE, thus safeguarding the cooperation with a leading provider of digital maps and location-based services. Thomas Sigi, Board of Management Member for Human Resources at AUDI AG, stated: “We are looking for experts in areas important for the future.” Demand is particularly strong for specialists in alternative drive systems and lightweight construction, but also for IT specialists, who will further develop the fields of Audi connect, Audi mobility and smart factory in the context of digitalisation.