Audi Budgets €13 Billion for Expansion

Volkswagen AG's Audi luxury car unit says it will invest €13 billion through 2016 on products, technology and capacity.

The company intends to direct nearly €11 billion of the total toward modernizing and expanding its product lineup, developing electrified powertrains and lightening its vehicles.

Audi says it will invest almost €8 billion in German production facilities at Ingolstadt and Neckarsulm. The unit also expects to complete an expansion of its assembly plant in Gyor, Hungary, next year, launch production in Foshan, China, in early 2014 and open a factory in San Jose Chiapa, Mexico, in 2016.

Audi's global sales are expected to top 1.4 million units this year. The company aims to achieve annual volume of 2 million vehicles by 2020, surpassing rival BMW AG to become the world's best-selling premium car brand.