Audi to Boost Spending 54% to Catch BMW

Volkswagen AG's Audi unit plans to hike spending on products and facilities to an average €4 billion per year through 2018 from €2.6 billion in the past two years, according to Reuters.

Unnamed sources tell the news service that Audi's new budget, to be announced on Dec. 27, will surpass €20 billion over the next five years. The expansion supports the company's goal of pushing annual sales above 2 million units by the end of the decade, surpassing BMW AG as the world's best-selling luxury brand.

Last year Audi sold 1.5 million vehicles worldwide compared with 1.8 million for the BMW Group.

Reuters notes that last week Auto Motor und Sport attributed the same budget number to Audi CEO Rupert Stadler. Audi has declined to comment on either report.