Audi Electric Investments Continue
Audi AG announced that €35 billion has been approved for investments in RUD and fixed assets between 2021 and 2025.
Of that total, some €15 billion will be spent on electrification of products, both full battery-electric and hybrids.
Audi is making serious investments to produce more vehicles like this, the all-electric e-tron S Sportback. (Images: Audi)
Approximately €17 billion will go toward “future technologies,” including software developments and innovative vehicle technologies.
Remember: the company’s slogan “Vorsprung durch Technik” speaks to advancement through technology, which this investment plan underscores.
- “With the investment planning that has now been carried out, we are making Audi stronger for the upcoming transformation of the core business. Technological leadership in electric-powered and fully networked driving is the aim of the supervisory board and management board. We are providing Audi with the necessary resources for this.” Herbert Diess, Chairman of the Supervisory Board of AUDI AG.
- “The investments approved today for enhancing Audi’s forward-looking themes of electrification, hybrid technology and digitalization are extremely important for us in this transformation. They secure the technological leadership of the Group. This benefits us in many projects, and also in creating high-quality jobs. The Audi sites at Neckarsulm and Ingolstadt will derive long-term advantages from this. That is a decisive factor for us as employee representatives.” Peter Mosch, Vice Chairman of the Supervisory Board of AUDI AG and Chairman of the General Works Council of AUDI AG.
While the €35 billion is impressive on its own, Audi is part of the Volkswagen Group, and other Group companies are making financial commitments to advanced product development. For example, the MEB platform that was introduced by VW brand, is being used by Audi, so it leverages that.
Not only is Audi working with other VW Group companies, but it is collaborating with BMW Group, Daimler and Ford on a common charging network for Europe.
And Audi and Group company Porsche are collaborating on a platform, PPE (premium platform electric).
What’s more, the group has created the Car.Software-Organization that they are all collaborating in.
It isn’t all spending.
Audi is pursuing the “Audi Transformation Plan,” which it inaugurated three years ago. This is an undertaking to become lean and efficient. It reckons that it has so far achieved savings of €6.5 billion.
The company and its Works Council agreed to a framework in late 2019 called “Audi.Zukunft” that is focused on allocating products to plants so that they will be efficient in the long-term while securing jobs for employees through 2029. It anticipates a benefit of about €6 billion through 2029.
Mercedes has been putting diesels in vehicles since 1926. It has been offering them in the U.S. since 1949. And 2013 is seeing a range of offerings, including in its popular GLK SUV.
Honda is an engine company.
Chrysler pioneered the modern-day minivan more than 30 years ago and has been refining and improving that type of vehicle ever since.