Audi Cutting Costs to Fund Electric Vehicle Onslaught
Audi is looking to cut costs by $12 billion by 2022 in order to fund the development of more electric vehicles.
The German automaker plans on introducing five all-new EV models in the coming years, starting with a new SUV based on the e-Tron Quattro Concept in 2018. But while making all that happen, Audi wants to maintain its operating profit margin at eight percent a year, which means cutting costs while it develops new cars. Automotive News reports a bulk of the cost savings would come from the company’s research and development budget.
SEE ALSO: Audi E-Tron Sportback Production to Start in 2019
Audi also plans to free up funds by sharing the costs of development with Porsche, which also falls under the Volkswagen Group. Porsche and Audi will share components and modules on electric vehicles, which makes sense considering Porsche is also planning a strong push in the electrified market.
Volkswagen Group is still reeling financially from the ‘dieselgate’ scandal, having to deal with a significant number of recalls and also various prosecutor investigations.
[Source: Automotive News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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