Audi increases budget for electromobility up to 2025

Volkswagen AG
1 min read
© AUDI AG
Dec. 02. 2020
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Ingolstadt - With its investment planning for the next five years, AUDI AG is pushing ahead its transformation to a provider of networked and sustainable premium mobility: investments remain at a high level, especially for future vehicle projects, in spite of a difficult business environment.

From 2021 to 2025 AUDI AG plans spending on research and development and on investments in fixed assets of about € 35 billion. Almost € 17 billion is allocated by the premium manufacturer to vehicle projects and innovative vehicle technologies alone, in order to newly energize the brand promise of “Vorsprung durch Technik”.

The total sum of development costs takes account of comprehensive synergies in the Group. For example, the development and implementation of the electric platforms takes place across the brands. Here Audi is developing together with Porsche the premium platform electric (PPE); at the same time, Audi uses the Group technology of the modular electrification platform (MEB). On the basis of the investment planning, upfront expenditure in the years 2021 to 2025 focuses on the uncompromising implementation of Roadmap E, with a large-scale product offensive for fully and partly electric models. For electrification alone, a sum of approximately € 15 billion – more than 40 percent of the total expenditure – is foreseen in the context of the planning round. Specifically, some € 10 billion is to be devoted to electromobility and € 5 billion to hybridization. By 2025 AUDI AG will expand its e-portfolio to about 30 models, of which approximately 20 will be powered entirely by electric batteries.

In digitalization, too, Audi benefits from cooperation in the Group, and will now exploit this competitive advantage even more efficiently. In software development, Audi CEO Markus Duesmann is now taking over as chairman at the Car.Software-Organization, which combines and extends the knowhow of the brands.

In this way the Group’s own software unit is creating a unified operating system with basic functions for all vehicles of the Group. The tasks of the Car.Software-Organization also include further development of functions for automated driving.

Thanks to an optimization of the product portfolio in order to become more efficient and lean, reduced complexity in internal processes, and improvements in fixed costs, the Audi brand is in a solid financial position. There will be substantial efficiency gains from the Audi Transformation Plan (ATP) and the Audi.Zukunft basic agreement. The ATP alone has released more than € 6.5 billion since the program started three years ago. Despite a challenging environment caused by the coronavirus pandemic this year, AUDI AG continues to focus clearly on the aim of achieving a cumulative sum of some € 15 billion by 2022 through this program. In addition, the Audi.Zukunft agreement lays down foundations of a strong market position for AUDI AG, secure jobs, and profitable company sites. Through the planned expenditures, the sites in Germany, too, will remain thoroughly competitive and well positioned for the future.