Audi to cut €10 billion to fund electric-car push – Reuters

Audi’s new E-tron SUV will be assembled at its Brussels plant next year. Audi photo.

Audi looks to move on from emissions scandal

A report by Reuters says Audi is looking to cut costs by €10 billion euros by 2022 to help the German automaker make the shift into electric cars.

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Sources close to the German automaker says Audi is planning to offer five new all-electric models to market in the coming years.  The company’s e-tron SUV will be assembled in Brussels in 2018.

According to Reuters, the bulk of the savings would come from cuts to research and development.  Sources tell Reuters that Audi is hoping to maintain its operating profit margin at 8 per cent this year.  During the first half of 2017, its profit margin was 8.9 per cent.

Both Audi and Porsche are expected to develop a new production platform that can be shared by the two VW premium brands, resulting in cost savings as the two brands share components and modules.

The company is under criticism from unions and managers over the diesel emissions scandal and its post-dieselgate strategy, as well, the luxury automaker is dealing with car recalls and prosecutor investigations.

According to Reuters’ sources four of the company’s seven top executives are facing dismissal in the near future.  The dismissals were discussed by supervisory board members last week, but a formal decision has yet to be made.

A spokesman for Audi has declined to comment.