Q5 out of Germany

AUDI AG will invest 300 million Euros ($A512.1m) in production facilities at its Ingolstadt plant in Germany to build the new a medium-sized 4WD from 2008, to be badged Q5.

Interestingly, Audi made the announcement to build a smaller sibling for the forthcoming Q7 seven-seat SUV, but has yet to reveal a concept that previews its all-new compact crossover.

"The Audi Q5 will take us a big step closer to vehicle sales of 1.4 million per year, a target that we have set ourselves for 2015," said Audi chief executive Martin Winterkorn.

Last year the VW-owned brand achieved 829,000 sales.