Audi plans to expand in Hungary
Audi has approved plans to spend EUR 13 billion on expanding manufacturing capacity and developing new models by 2016 in order to challenge market leader BMW, wire service Bloomberg reported. The investment will be partly used to expand the Audi plant in Győr, western Hungary.
Funds totaling over EUR 10 billion are earmarked for development at Audi over the next few years, investing in projects such as developing new technologies and new models. Locations where the automotive group is planning to expand manufacturing capacity include China and Hungary, with plans for a new plant to be set up in Mexico.
Of the total amount earmarked for development, EUR 8 billion will go towards upgrades at the group's two major manufacturing plants in the German cities of Ingolstadt and Neckarsulm. As for Hungary, the Győr plant is expected to boost manufacturing capacity to 125,000 cars per year starting next year. Mass production of the new 1.2-liter and 1.4-liter engines started in November this year at the factory.
Audi continues to spend large amounts on investment in order to implement a strategy focusing on growth, CFO Axel Strotbek commented. Expansion of manufacturing capacity on a global scale will enable the group to grow further, he added.