Audi, 37 billion in investments on electric and hybrid cars

The house of the four rings announces an expansion of the industrial transition program following the redundancy plan

Audi, after the announced job cuts for over 9,500 employees, has decided to strengthen the investment plan for electric mobility.

In the 2020-2024 five-year period, the home of the four rings will invest around 37 billion euros in research and development, buildings, factories and equipment. The planning is the result of a significant improvement in the allocation of resources and in the management of costs as well as the granting of the highest priority to the electrification of the range.

By 2025, the Audi Group aims to offer over 30 high-electrification models (plug-in hybrids and hybrids, of which 20 are fully electric. Hybrid or zero-emission cars will account for 40% of total sales).

Thanks to the Group synergies, which will allow a more rapid transition to the electric sector, Audi collaborates with Porsche for the development of the Premium Plattform Electric (PPE) platform for medium, full size and luxury vehicles, while the MEB electric modular platform of the Volkswagen Group will be dedicated to more compact vehicles. The MEB platform will make it possible to make electric models that are economically accessible and at the same time technologically advanced.

To support the huge investments required by the development of the new business model, the four-ring house launched the Audi Action and Transformation Plan two years ago.

The program has already contributed to operating profit of 4 billion euros and, by 2022, will allow for an additional 15 billion euros to be invested.
In this regard, the measures to be adopted for the implementation of 80% of the program have already been identified.

Audi.Zukunft (future Audi), that is the agreement reached on November 26th between the Company and the workers’ representatives provides on the one hand for the optimization, oriented to the market trend, of the production capacity of the German plants of Ingolstad and Neckarsulm, on the other, the socially responsible adjustment of the workforce. With the development of new professional profiles and the extension of employment guarantees up to 2 029, the union representatives and the company will send an important signal to the workers of the German production sites. The measures agreed under the Audi.Zukunft Plan will lead to a positive impact, quantifiable at 6 billion euros by 2029 to be allocated to further future investments.