Hoovey689

iTrader: (16)

Audi to spend $17 billion to fight BMW

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.

With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.

Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.

http://www.autoblog.com/2012/12/29/a...-to-fight-bmw/

I8ABMR

VW is on the war path. They have very aggressive over the last 3-5 years. They want to rule the world.

rkyat

gimme more v12 lambos. I dont care if you rule the world lol.

Fizzboy7

The next A4 needs to make a big splash. It's a refined and modern machine, but has higher potential. Also think one of the easiest ways for the brand to rise up is to increase boost with the base 2.0T. 211 is pathetic, even though the car is relatively quick. Numbers always matter in this industry. Also feel they need to better align themselves with their competitiors. The latest S4 still does not fall even with BMW and Mercede's offerings. Also, getting rid of the normally aspirated V6 was a mistake, or at least they need two versions of the 2.0T- one hot, one cold. All this would line up better with the other two brands.

spwolf

more cheaper models it seems....

Joeb427

iTrader: (1)

With competition like that,the customer usually gets a better vehicle.

Stormwind

hmm...Germans on a war path to dominate the globe, what could go wrong here?
On the other hand it is good news they are spending that money on r&d instead of stupid marketing schems like what some of the Japanese brands are doing.

bitkahuna

iTrader: (20)

maybe bmw is spending 17Bn too so it may not be that impressive.

mmarshall

Audi, IMO, probably doesn't have to spend that kind of money to compete with BMW. First, their existing fit/finish and interior plushness/quality speak for themselves...all one has to do is simply go to a showroom and check them out. Second, their Quattro AWD system is better than BMW AWD systems in several ways. Third, if Audi is going to spend some $$$$$$$, that money (or at least part of it), IMO, would be much better off spent on something less-complex and more driver-friendly to use to replace the annoying MMI system....same, incidentally, for BMW and its I-Drive.

My0gr81

Audi would be spending this money regardless of competing with BMW just to remain current and maintain production capacity if their demand projections hold. Nothing new for a commercial entity. Reading the article, at no point did it mention VW actually making a statement, just the opinion of the writer. Probably to generate more hits to increase advertising.

92 SC400

That's nice and all, but I think brand loyalty means a lot with Bimmer buyers. It seems Audi/VW would need to sway all those on the fence that Audi is better than BMW.

BoDarville

this. even the Golf R gets a 256 or 270 hp version of the 2.0T, depending upon which side of the pond you are on. i've said it before and i'll say it again: a $58K 211hp cabriolet is a joke.

i'd also suggest they rethink charging a la carte for every little feature that should come standard (bmw certainly guilty of this too -- leatherette for crying out loud ). perhaps assembling some of these south of the border will help bring down price points.

SteVTEC

211 is widely believed to be marketing horsepower. It probably makes a ton more than that.

Biggest thing Audi needs to do in the U.S. is improve their dealerships and better support their leasing programs. Audis always end up being significantly more expensive than either Benz or BMW if leasing because both of them have pretty well supported leasing programs whereas Audi doesn't. Lots of people lease in the U.S.

That said I really like Audis and would love to have one one day. Would definitely buy an Audi before I'd buy a Benz, and yes they're extremely popular cars in Europe/Germany.

natnut

Here in Singapore, we have almost blanket advertising from Audi in the newspaper, radio and media. Talk about stupid marketing LOL.

Blackraven

Including the Audi S8 that they used a cranelift to hoist it to the top of the Fullerton Hotel.