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LUXURY car-maker Audi is planning to invest more than $30 million in Australia for new dealerships, more dealer training to improve quality and the adoption of new marketing tools to rein in its German rivals, Mercedes-Benz and BMW.

Included in the plans are two new dealerships – one in the southern Perth suburb of Myaree and another in the NSW Central Coast town of Gosford – with other outlets committed to upgrades and renovations.

Audi Australia managing director Andrew Doyle said a key component to the Australian investment would be Audi’s commitment to a new global training system that will boost the number of trainers and improve sales and service quality.

This year, Audi will add 7500 new staff to its international operations and is particularly seeking engineers in digitisation and electrification fields.

Australian staff numbers will be increased by 10 per cent in 2016 and the company will double its Sydney headquarters office space through a building extension.

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“The investment is in people,” Mr Doyle said. “We have more specialists with new ideas, new energy and new passion.”

Audi Australia sales rose 20.1 per cent last year compared with 2014, with a 2015 total sales figure of 23,088, whereas rivals BMW and Mercedes-Benz increased sales by 10.1 per cent and 18.0 per cent respectively, relegating Audi to third place in the luxury car segment.

“More people are choosing Audi,” Mr Doyle said. “We are closing the gap in 2016.

“There’s no doubt that the premium market segment is growing. Our March year-to-date sales are up 12.4 per cent compared with the same period in 2015.”

Mr Doyle said that in 2014, Audi Australia’s sales were in 18th position on the company’s market ladder, a position from which Australia has recently climbed.

“In 2015 we moved to 13th and now, on year-to-date figures, we are 10th,” he said.

“I don’t expect to stay there for the rest of the year but it shows how we are growing market share. The new models coming this year will increase our position.”

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Audi’s $340m global ‘scandal’ war chest

LAST year, Audi posted a $A7.15 billion global operating profit despite allocating a $A340 million war chest to cushion the effects of the Volkswagen Group emission scandal in the US.

It also allocated $A4.5 billion for research and development in electronics and electric-vehicle research and is well within its 8-10 per cent investment return on sales, according to Audi Australia managing director Andrew Doyle.

He said the war chest would cover any legal action, costs attributed to its customers and expenses associated with restoring the diesel engine to the correct emission standards.

Only the United States market 3.0-litre V6 turbo-diesel engine was affected by the emission issues, not the four-cylinder EA189 used by Volkswagen and Skoda-badged models.

By Neil Dowling

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