Audi: Out of Formula E, but 15 Billion for Electrification

Audi is also focusing more on electromobility: After announcing that it would realign its motorsport commitment by exiting Formula E at the end of the 2021 season and instead competing in the Dakar Rally, the development budgets are also being reallocated: Around €17 billion will be invested in future technologies by 2025, with around €15 billion dedicated to electrification. Approximately €10 billion of this will go towards pure electromobility and €5 billion towards hybridization. The Audi portfolio is expected to offer 30 electrified models by 2025, 20 of which will be purely electric.

The necessary "financial leeway" for this will be achieved through increased synergies within the group, including the E-platform strategy and software development—Audi aims to save billions in this way. Additional funds are expected to be found in fixed cost reductions, streamlining the product portfolio (particularly disposing of exotic models in the current combustion engine range), and savings in non-vehicle-related investments. Especially since CEO Herbert Diess is putting on the pressure:

“With the investment plan now in place, we are strengthening Audi for the upcoming transformation of its core business.”

This way, Diess, who also chairs the Audi supervisory board, aims to strengthen the Ingolstadt-based company, enabling it to achieve true development advancements once again:

“The technological leadership in electric and fully connected driving is the aspiration of the supervisory board and management board. We are equipping Audi with the necessary strength for this.”

Peter Mosch, deputy chairman of the supervisory board and chairman of the general works council at Audi, sees new perspectives for the German sites with the investments in electrification and digitalization:

“In the long term, Audi’s Neckarsulm and Ingolstadt sites will benefit from this.”

It is also important to strengthen the software segment: Audi CEO Markus Duesmann takes over the chairmanship of the supervisory board of the cross-brand "Car.Software" organization, where brand expertise is to be pooled and further expanded. Duesmann has clear priorities here:

"Our investment planning speaks clearly: We are making no compromises on product substance and are clearly prioritizing upfront investments for electromobility and software development. The consistent focus on corporate synergies in these key future areas is an important key to success."

It remains to be seen whether the Artemis project, which could integrate all brands broadly for the first time, will also be included. However, Audi's statement only refers to the use of the MEB and the Premium Platform Electric (PPE) to be developed with Porsche.

What does this mean?

Even at Audi, the transformation is gaining massive traction, which is desperately needed: The company is completely reorganizing itself in motorsport and is also planning the passenger car and software portfolio in a completely new way. Considering current developments, this is exactly right and not a moment too soon.