Audi, a division of Volkswagen (ETR:VOW3), announced on Monday that the company will reduce its 2016 spending plan. The first item to be delayed will be the company’s new wind tunnel that was expected to begin construction this year.
The company plans to invest €3.3 billion on equipment and plants and 2016. Initially, the company expected to spend €3.4 billion in 2016. Audi initially projected that the company would invest over €17 billion between 2015 and 2019, with an average of €3.4 billion per year. The company may still be able to hit this mark if they plan to increase spending in 2017.
Volkswagen previously announced that the company has reduced its investment plan by over €1 billion for 2016.
Audi has stated that the company will examine investment decisions individually, and that the company wants to optimize process and costs to further enhance profits. The company will not save at the expense of growth, but stated that postponing the new wind tunnel for one year is a smart choice going into 2016. The company has not released any information on their plans for beyond 2016.
Enhancing the company’s brand image and furthering current research is a top priority for Audi in 2016. Volkswagen is still uncertain of the amount of fines and payments the company will incurr to remedy the emissions scandal that occurred in 2015.