Audi Increases R&D Budget For Electric Mobility

Discussion in 'In the News' started by xcel, Dec 3, 2019 at 6:41 AM.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] $40 billion USD over the next 5-years with $13 billion USD allocated to electrification. 10 percent of the workforce will be laid off to pay for it. :(

    Wayne Gerdes – CleanMPG – November 29, 2019

    2021 Audi e-tron Sportback

    [​IMG]
    The e-tron SUV and Sportback are just the beginning.​

    AUDI AG has budgeted a total of $40 billion USD for R&D and investment in property, plant and equipment over the next five years. The budgetary roadmap - Audi Transformation Plan (ATP) - includes $13 billion USD solely directed to electric mobility. ATP has already contributed $4.3 billion USD to earnings. Cost reduction measures including layoffs in Germany and around the globe will hopefully free up approximately $6.5 billion for future investments over the next 10-years.

    The current planning reflects a significant improvement in investment and cost discipline, as well as the strong prioritization of investments in electric mobility.
    By 2025, the Audi Group intends to have more than 30 electrified models in its product range – 20 of which will be fully electric. Audi intends to achieve about 40 percent of its worldwide unit sales with all-electric and hybridized automobiles by 2025. In order to achieve the rapid scaling of electric mobility, Audi is working with Porsche to develop the premium electrification architecture (PPE) for large electric cars, and the Modular E Drive System (MEB) is being developed together with Volkswagen. The cross-brand architectures will enable high Group synergies well into the future.

    In order to finance the high investment required to realign the business model, the company launched the Audi Transformation Plan (ATP) two years ago. This earnings-improvement program is to free up a total of $16.3 billion USD for future investments by 2022. The ATP has already contributed more than $4.3 billion USD to operating profit since it was launched.
    In this time of decreasing sales and industry tumult, the Brand of Four Rings has announced it will eliminate up to 9,500 employees of the approximately 91,000 currently employed or more than 10 percent of its global workforce over the next 5-years to pay for the future R&D and expansion expenditures.

    In totality, electrification is a big gamble for the German automakers as it has to date not provided any profits. Someday is a gamble which appears to be every automakers survival tactic through the intermediate term.

    * All currencies were converted from Euro's to USD at today's exchange rate of €1 Euro = $1.11 USDs.
     

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