The Wolves have won only one of their last 10 in the Bundesliga and Saturday's draw at Ingolstadt left them sat 14th in the table.
Having sacked boss Dieter Hecking in October, his replacement Valerien Ismael is still to really find his feet in the role.
Wolfsburg have traditionally been a club keen to splash the cash due to their links with the Volkswagen car company and, although the purse strings have been tightened slightly in recent years, they have still been extremely active in the transfer market.
Although Augenthaler, who coached the club between 2005 and 2007, is confident they will not be relegated, he admits he has does not understand the current direction of the club.
"They will stay up in the league," he said in an interview with Omnisport. "They have quality in the team. But I don't understand the philosophy of Wolfsburg.
"Wolfsburg have much money and a good team but I don't know why they are where they are in the table."