Audi decides on investment program for realignment

Adver­tise­ments

Bram Schot

    • Around €14 bil­lion of advance expen­di­ture for elec­tric mobil­i­ty, dig­i­tal­iza­tion and autonomous dri­ving by the end of 2023
    • Inter­im CEO Bram Schot: “We are sys­tem­at­i­cal­ly mov­ing towards elec­tric mobil­i­ty and are con­sis­tent­ly pri­or­i­tiz­ing future top­ics”
    • Audi Trans­for­ma­tion Plan coun­ter­acts finan­cial bur­den of high upfront expen­di­ture

Via Audi Media Cen­ter

The Audi Group is accel­er­at­ing its realign­ment with high invest­ments in future-ori­ent­ed top­ics. From 2019 until the end of 2023 alone, the com­pa­ny plans advance expen­di­ture of approx­i­mate­ly €14 bil­lion in elec­tric mobil­i­ty, dig­i­tal­iza­tion and autonomous dri­ving. This includes invest­ments in prop­er­ty, plant and equip­ment as well as research and devel­op­ment expen­di­ture. Over­all, the company’s total pro­ject­ed expen­di­ture for the plan­ning peri­od of the next five years amounts to about €40 bil­lion.

This plan­ning round bears a clear sig­na­ture: We are tak­ing a very sys­tem­at­ic approach to elec­tric mobil­i­ty and will be much more focused in future. We are con­sis­tent­ly pri­or­i­tiz­ing our resources for future-ori­ent­ed prod­ucts and ser­vices that are high­ly attrac­tive and rel­e­vant to the mar­ket,” says Bram Schot, tem­po­rary Chair­man of the Board of Man­age­ment of AUDI AG. “With mod­els such as the recent­ly pre­sent­ed Audi e-tron GT con­cept, we want to elec­tri­fy peo­ple again for Audi and at the same time be an agile and very effi­cient com­pa­ny.”

Start­ing with the Audi e-tron, the brand’s first all-elec­tric SUV, the com­pa­ny will launch numer­ous elec­tric cars in the com­ing years. By 2025, Audi will offer approx­i­mate­ly 20 elec­tri­fied mod­els, about half of which will have all-elec­tric dri­ve sys­tems. At the same time, Audi is push­ing for­ward with the dig­i­tal­iza­tion of its auto­mo­biles and plants, and is expand­ing its busi­ness mod­el with new dig­i­tal ser­vices such as “func­tions on demand”.

The share of total expen­di­ture for future top­ics will there­fore increase sig­nif­i­cant­ly over the plan­ning peri­od. Par­tic­u­lar­ly in the sec­ond half of the plan­ning hori­zon, the approved advance expen­di­ture also reflects the scal­ing-up of elec­tric mobil­i­ty on the basis of cross-brand archi­tec­tures with high Group syn­er­gies. To this end, Audi is work­ing with Porsche to devel­op the “pre­mi­um archi­tec­ture elec­tri­fi­ca­tion (PPE)” for large elec­tric cars, while the “mod­u­lar elec­tric dri­ve kit (MEB)” is being real­ized togeth­er with Volk­swa­gen.

In order to finance its course for the future from its own resources, the com­pa­ny is sys­tem­at­i­cal­ly rolling out its suc­cess­ful Audi Trans­for­ma­tion Plan. With this pro­gram, Audi will already gen­er­ate pos­i­tive earn­ings effects of more than €1 bil­lion in 2018, coun­ter­act­ing the finan­cial bur­den from high advance expen­di­ture. In addi­tion to trans­fer­ring resources to areas of the future, the Audi Trans­for­ma­tion Plan is pri­mar­i­ly aimed at reduc­ing com­plex­i­ty, sys­tem­at­i­cal­ly uti­liz­ing syn­er­gies, and iden­ti­fy­ing and dis­con­tin­u­ing activ­i­ties that are no longer rel­e­vant to cus­tomers.

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