Audi is transforming as a company and has just announced to its shareholders a major direction shift for the company. At their 129th AGM, the transformation plan was revealed.
Audi is planning on a the electrification of much of their fleet and its going to happen fast, with an estimated 1/3rd of all Audi owners in 2025, just 7 years away, will be buying an battery-powered EV. The company plans to ship some 800,000 electrified vehicles, not between now and then, but every year by the time 2025 arrives. That’s an impressive ramp.
Chairman of AUDI AG, Rupert Stadler said,
“2018 is a key year for Audi with an enormously high speed of change, that will gradually put us back on the offensive.
We will continue clearing up the diesel crisis and will restructure large parts of our global organization for the course we have set for the future. At the same time, we are approaching the climax of the biggest model fireworks in our company’s history and are entering the age of electric mobility with the Audi e-tron.”
Audi’s first fully electric volume model, the Audi e-tron SUV will have its world premiere at the Audi Summit in Brussels on August 30, this year. This will be followed by the rapid expansion of the portfolio of fully electric cars and plug-in hybrids in each model range.
While the vehicles themselves are changing, Audi is also changing their relationship to the customer. The production version of the Audi e-tron prototype, will for the first time see customers book various functions flexibly online. Audi believes this will generate an additional €1 billion to operating profit through digital services via the myAudi customer portal by the year 2025.
Audi is restructuring their business to add a central product management unit which reports directly to the CEO. This unit will provide a single direction for the planning, implementation and operation of digital products, and is thus establishing digital value added organizationally at the same level as the existing core business.
Audi is also developing an integrated IT platform for vehicle connectivity and digital services. By means of a shared high-performance backend, the models from Audi and the other brands of the Volkswagen Group will be usable compatibly; this means for example that customers’ settings and content will be smoothly transferred between the automobiles of the various Group brands.
Member of the Board of Management for Finance, IT and Integrity, Alexander Seitz said,
“We want to have premium electric cars and digital services that are also attractive in economic terms. That is our clear ambition for the mobility of the future.”
“To that end, we are utilizing Group synergies significantly more effectively and are releasing resources for strategy projects with our Action and Transformation Plan.”
In the current financial year, Audi is rejuvenating and expanding its model portfolio with more than 20 new market launches. Before the end of this year, the two high-end SUVs, the Q8 and the Audi e-tron, will extend the Four Rings’ product offering in this prestigious segment.
Audi will launch new sporty SUVs also in the compact and midsize segments in 2018, thus significantly strengthening its market position for premium SUVs, for which demand is strong all over the world. In addition to the new Q3 generation, the sporty SQ2 will have its premiere in the coming months. In China, Audi SUVs will be available for the first time as long-wheelbase versions: the Q2 L and the Q5 L. By the end of 2019, Audi will launch a total of eleven new SUVs, including further models without predecessors such as the Audi Q4, which is to be launched next year.