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Audi increases budget for electromobility up to 2025; €10B for electromobility, €5B for hybridization

AUDI AG plans a total investment of approximately €35 billion, in spite of a difficult business environment, to 2025. Some €17 billion of that, amounting to half of the investment sum, is allocated to future technologies alone. Audi has earmarked approximately €15 billion for electromobility and hybridization, thus underlining the key importance of its electro-roadmap.

The necessary finances are created by synergies in the Volkswagen Group—in both the e-platform strategy and in software development. Improvements in fixed costs, a leaner product portfolio, and savings in non-vehicle investments further contribute to the financial solidity of the Audi brand.

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

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.

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% 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.

Through an optimization of the product portfolio in order to become more efficient and lean, reductions in complexity in internal processes, and improvements in fixed costs, AUDI says 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.

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