Audi to Invest $16 Billion in Self-Driving Cars and E-Mobility Services
【Summary】Beginning next year and until the end of 2023, luxury automaker Audi plans to spend 14 billion euros ($16 billion) on self-driving technology, digitalization and e-mobility services.
The Audi Group is accelerating its realignment with significant investments in future technologies such as autonomous driving. From 2019 until the end of 2023 alone, the company plans to spend 14 billion euros ($16 billion) on self-driving technology, digitalization and e-mobility services.
The investment reaches beyond tech for Audi vehicles. The automaker said it would invest in property, plant and equipment upgrades, as well as research and development spending.
In total, Audi plans to spend about 40 billion euros in the next five years.
"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 e-tron, Audi's first fully-electric SUV due in 2019, the company will launch numerous electric models over the next few years, including the e-tron GT, an electric sedan unveiled last week at the LA Auto Show.
The fully-electric Audi e-tron SUV, the company's first electric model
By 2025, Audi plans to offer around 20 electrified models, about half of which will be fully-electric models. 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". These services include the ‘myAudi' digital ecosystem, connecting the car to a smartphone app and directly to other digital services.
This intuitive platform is the central starting point for the Audi's customers, where all digital services can be booked, used and managed from a single portal.
Audi will increase investments over the planning period for developing shared architectures for its new electric models. 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 developed together with Volkswagen.
In order to finance its new initiatives, Aud is rolling out its successful Audi Transformation Plan. With this program, Audi plans to generate revenue of more than $1 billion by 2025
In addition to transferring resources to areas of the future, the Audi Transformation Plan is primarily focused on reducing manufacturing complexity and identifying and discontinuing activities that are no longer relevant to customers.
By the year 2025, Audi aims to sell approximately 800,000 electric cars and plug-in hybrids – approximately one out of every three models sold.
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