) Audi division announced that it will make an investment of 22
billion euros ($30.1 billion) for the development of new models,
plants and technology over a five-year span till 2018. Thus the
automaker expanded its investment plan to 4.4 billion euros per
year, from 2.6 billion euros planned in Dec 2011's budget.
Volkswagen will be allocating 70% of the investment for the
development of new models and technology. Of this, more than half
the amount is planned for its German sites located in Ingolstadt
Volkswagen has undertaken this strategy to compete with BMW,
according to Reuters. The strategic investment will help the
automaker to carry out expansion in Mexico, China as well as
Brazil. With this, Volkswagen expects sales volume to increase to
2 million cars per year.
Volkswagen believes that this strategy will help it overtake BMW
by the end of the decade. Volkswagen also intends to provide
tough competition to
Toyota Motor Corp.
General Motors Co.
), and plans to capture the position of the leading global
automaker from them by 2018.
Volkswagen has been giving stiff competition to General Motors in
China, the world's largest automobile market. Reportedly, both
the automakers have crossed sales volume of 3 million units in
the nation, with a few days left for year end.
However, Volkswagen achieved the milestone a week earlier than
General Motors. Thus, the German automaker is expected to beat
the American auto giant, in terms of total sales in China in
2013. This is for the first time in nine years that Volkswagen
will surpass the sales of General Motors in China. This will make
Volkswagen the leading foreign automaker in the nation.
Currently Volkswagen carries a Zacks Rank #3 (Hold). Other stocks
in the automobile sector worth considering include Toyota and
Honda Motor Co., Ltd.
). Both stocks carry a Zacks Rank #2 (Buy).
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