Audi to invest $10.5 billion through 2012, Audi Q5 Hybrid confirmed for 2010

2010 Audi Q5

Audi announced today that it will continue to invest in new products and technologies to strengthen its lineup in the future. The Ingolstadt automaker plans to invest 7.3 billion euros ($10.5 billion USD) from 2009 through 2012.

Audi said that approximately 5.9 billion euros ($8.49 billion USD) will be invested in developing new products, optimizing of conventional driveline and the development of electric and hybrid models. By 2015, Audi plans on expanding its portfolio from 34 models to 42.

Audi said that the A1, A7, A8 and R8 Spyder will be added to its lineup during 2010. The German automaker confirmed that it will introduce its first full hybrid model, the Audi Q5 Hybrid, at the end of 2010.

Audi sold a total of 1,003,469 cars in 2008, achieving its 13th consecutive record year.

Hit the jump for the press release.

Press Release:

Audi continues to invest strongly in the future

· 7.3 billion euros total investment from 2009 through 2012
· Around 5.9 billion euros for new products and future technologies
· Number of models to increase from 34 now to 42 in 2015
· Clear commitment to Germany as a production location: around 3.8 billion euros to be devoted to the Ingolstadt and Neckarsulm plants between 2009 and 2012

Ingolstadt, December 28, 2009 ““ Audi will continue to invest heavily in new products and forward-looking technologies in the future: plans for 2009 through 2012 envisage total investments of 7.3 billion euros for fixed assets.

In coming years the Audi Group will continue to invest strongly in its future. Approximately 5.9 billion euros, in other words about 80 percent of its total investment in fixed assets, will be devoted to new product development, further optimization of conventional drivelines and the development of electric and hybrid models. By 2015, the Audi brand will have enlarged its product portfolio from currently 34 to 42 models. “With our planned investments in new products and mobility concepts, for example electric propulsion, we are creating a basis for our company”s future growth,” says Axel Strotbek, Member of the Board of Management for Finance and Organization at AUDI AG.

Next year Audi will launch a series of new cars. The A1, A7, A8 and R8 Spyder will be added to the product portfolio during 2010. At the end of 2010 Audi will unveil the Audi Q5 Hybrid, which will reach the market at the start of 2011 as the brand”s first full hybrid model. As Strotbek points out: “We will be in a position to finance all our planned investments from our operative cash flow.”

At the German locations and elsewhere, future policy is now being implemented: from 2009 through 2012 approximately 3.8 billion euros will be invested at the Ingolstadt and Neckarsulm plants. “This is a firm commitment to our German facilities. Audi is facing the technological upheaval in the automobile world in a farsighted way. The will to work and high qualifications of employees at our German plants are a firm foundation for the necessary changes,” states Peter Mosch, Chairman of the Audi General Works Council.

About 2.5 billion euros will be invested at Ingolstadt and about 1.3 billion euros at Neckarsulm. A new transmission and emissions center will be opened at the Ingolstadt plant, and other investment priorities will be stamping tools for the new Audi A1 and the manufacturing structures for the A3 and A4 models. The investment focus in Neckarsulm will be on the A6, A7 und A8 models and new engine-function test rigs.

AUDI AG sold a total of 1,003,469 cars in 2008 and thus achieved its 13th consecutive record year. The Company posted new record figures with revenue of €34.2 billion and profit before tax of €3.2 billion. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Györ (Hungary), Changchun (China) and Brussels (Belgium). Aurangabad in India saw the start of CKD production of the Audi A6 at the end of 2007 and of the Audi A4 in early October 2008. The Company is active in more than 100 markets worldwide. AUDI AG”s wholly owned subsidiaries include Automobili Lamborghini Holding S.p.A. in Sant”Agata Bolognese (Italy) and quattro GmbH in Neckarsulm. Audi currently employs around 58,000 people worldwide, including 46,500 in Germany. The brand with the four rings invests around €2 billion each year in order to sustain the company”s technological lead embodied in its “Vorsprung durch Technik” slogan. Audi plans to significantly increase the number of models in its portfolio by 2015 to 42. Audi celebrates its 100th birthday this year. The company was founded by August Horch in Zwickau on July 16, 1909; he named it AUDI after the Latin translation of his surname (“hark!”).

– By: Omar Rana