Audi to launch €11.6B investment program in 2011; focus on future technologies, including electric and hybrid drive systems
27 December 2010
Audi plans to invest about €11.6 billion (US$15.3 billion) between 2011 and 2015, primarily in new products and technologies, as well as in upgrading its sites. This marks the largest investment program in the company’s history.
About 80% of all investment—more than €9.5 billion (US$12.5 billion)—will go to developing new products and to technologies of the future such as electric and hybrid drive systems. One example is the Audi R8 e-tron, the first electric sports car from Audi, which the company wants to begin selling in late 2012.
More than €5 billion (US$6.6 billion) is earmarked for the German sites in Ingolstadt and Neckarsulm.
Innovation requires people. For this reason, we want to hire around 1,200 experts in 2011 who will primarily bolster our electromobility and lightweight construction fields of competence, as well as the implementation of our growth strategy.
—Thomas Sigi, Member of the AUDI AG Board of Management for Human Resources
About $15B could propel Audi on the electrification roadway by 2015. That's what is required to catch up with Toyota and others.
Meanwhile, let's hope that with 15+ manufacturers doing as much, vehicles electrification should be well on its way by 2015/16.
Ford may become one of the strong contenders.
Interesting decade.
Posted by: HarveyD | 27 December 2010 at 08:13 AM
There's nothing to catch up with.
Pouring money into mass production of the existing technology is not the answer, nor is making vehicles that don’t sell.
Battery technology must continue to improve;
Industry IS pouring money there.
Maybe China needs to catch up with their auto design (for ICE vehicles as well as BEVs) but mainstream auto makers can and should jump on electrification big time, but only when the technology is ready.
Has the Prius put Toyota 10 years ahead? – of course not.
Is the Volt too expensive because they gave up on the EV1? – of course not.
It's battery technology, not EV technology, that we need.
Posted by: ToppaTom | 27 December 2010 at 09:05 AM
Audi and other German makers are a bit late to the party, but so are 2 of the 3 U.S. car makers. Better late than never I would guess.
Posted by: SJC | 27 December 2010 at 12:31 PM
@ToppaTom:
Almost everything on a conventional car needs redesigning to make it compatible with a conventional car. Check out the CEO of GM's comments on the costs of the Volt.
That is beside the effort needed to use lighter weight materials, with BMW for instance introducing carbon fibre, which requires radically different production techniques to traditional metal bashing.
Posted by: Davemart | 27 December 2010 at 12:47 PM
Most things BEVs "need" to make them competitive with conventional cars are equally "needed" by conventional cars to improve mpg.
Electric steering, water pumps, AC compressors and carbon composites (CCs) are desperately needed on all cars, are being developed for them, and are being used as they become affordable.
“High mpg” technology does not EVs, EVs need high mpg technology.
There is a whole world (sporting goods, aircraft, ICE autos) pushing into CCs - and I don't think CC technology needs EVs to make it mature.
GM's CEO ? – he is trying to justify the price of the Volt to potential buyers.
Posted by: ToppaTom | 27 December 2010 at 02:10 PM
Future BEVs will pressure manufacturers to produce lighter vehicles. BMW will do it. Others will also do it.
Lighter better designed vehicles will waste less energy.
Next generation batteries with 2x to 3x better performance will move BEVs to the next performance level.
By 2020, highway capable BEVs will be common place and compete with improved ICE vehicles.
Posted by: HarveyD | 27 December 2010 at 08:07 PM
Weight, strength and safety will all be big issues that drive hybrids of any kind. Audi is famous for aluminum bodies. While this may not be cost effective, polymer panels and space frames could make a come back.
Posted by: SJC | 28 December 2010 at 10:47 AM
Yes, and most plastic can be re-enforced, at a low cost, with a mixture of crystaline cellulose to make them 4 to 5 times stronger. That process will be common place within a few years. Crystaline cellulose is extracted from common wood at a relatively low cost.
Molded re-enforced plastic cars could last for decades. Colors could be integrated to avoid costly painting.
Posted by: HarveyD | 28 December 2010 at 04:37 PM
Some do not like CAFE standards, but if it helps bring about the sale of more fuel efficient cars, then it is working. Weight is one of those issues that gets confused with safety. People feel that a larger vehicle that weighs more is safer for them and that is what counts.
Once models that weight less and are shown to be safe become available, the consumer can decide. Volvo has always tried to make safer cars and that was not a big issue until recently. Maybe this will be one of the next sales features. The car is light, fuel efficient and safe.
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Posted by: Account Deleted | 29 December 2010 at 11:48 PM
SJC: Those three goals may be met (by many car manufacturers) by 2020.
Cost may be a problem, specially on the first few million units, but it should come down after 10 millions worldwide.
Posted by: HarveyD | 30 December 2010 at 11:00 AM
One of the complaints against space frames and polymer panels in Saturn cars was the gap between panels for expansion in heat. It did not bother me and if they got 10% better mileage it was all good.
Posted by: SJC | 01 January 2011 at 02:12 PM