Audi Planning Massive Electric Vehicle Gamble: Report

by Steph Willems

Published: July 19th, 2016

audi planning massive electric vehicle gamble report

Audi is apparently about to embrace electric vehicles with all the intensity of a daughter greeting her father on the tarmac after the war.

According to Reuters, company sources say the automaker plans to make EVs account for 25 percent of sales by 2025 — a move that would erase the environmental stigma of its parent company and challenge Tesla in the fledgling luxury EV field.

The same sources say Audi CEO Rupert Stadler will unveil the plan to 2,000 managers behind closed doors tomorrow. Details of the Munich meeting were published in the German newspaper Handelsblatt.

To reach that lofty target, sources say Audi plans to divert one-third of its research and development funds towards electric vehicle development, digital services and autonomous driving technology. From a sales perspective, it means finding buyers for 450,000 electric vehicles every year (going by last year’s sales tally).

Going this route would be a risky venture for Audi. Electric vehicles are still a new entry in the automotive landscape, with sales hampered by higher costs, limited vehicle range and recharging infrastructure. It’s hard for any automaker to guess the potential demand.

To free up more money for EV development, Audi will cut back on its gasoline and diesel expenses, the sources claim. That would mean fewer engine and transmission offerings, but Audi already seems to be going in this direction. Earlier this month, a report said the automaker will stop developing new V8 engines. (If it wants to, it can source those powerplants from Porsche.)

If true, Audi’s electric push would free up Volkswagen to focus on hydrocarbon-powered volume vehicles while still allowing its parent company to repent for its emissions scandal sins.

#Audi #ElectricVehicles #EVs #FutureVehicles #ProductPlanning

Steph Willems

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Nick_515 on Jul 19, 2016

This is interesting. I of course have no way of knowing whether this is Audi vaporware, as has been mentioned above, or actual future. Sportyaccordy mentioned why it makes sense for Audi - there is a limit to ICE and turbocharging, and they have got to 'innovate.' But it makes sense for me as a buyer. I happened upon a v6 A4 and am enjoying its ownership. It has not been cheap to maintain, but it has not been expensive. For someone like me, this has been one great relationship. But I am not rich, and while I am ready to equate 2.0T with sporty, I am not ready to equate it with luxury. I cannot afford v6 Audis in the current landscape. And I would not maintain a used german car if it has a four cylinder engine. In that sense, a used Audi EV would restore that "i'll pay to maintain if I drive a different enough, proto-luxury car" balance I have now. Weird metaphor by the way, the opening line. And I disagree with the writer that this would be "a risky venture" for Audi. Expensive maybe, to resolve charging infrastructure.

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- Tedward on Jul 20, 2016
  
  That's an excellent description of the state of luxury cars right now. The less expensive, more stressed, engines can be seen as the question mark purchase. Meanwhile, the higher trim 6's and 8's are probably/certainly more expexpensive to maintain, but because they seem to have moved up the price ladder it's almost a moot point. If you can take over a grand a month just on payments are you really going to care about maintenance costs? Are those buyers really going to own their cars outside of warranty? Double nope.
  
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Tandoor on Jul 19, 2016

Everyone is going to have so many EVs in "the future". I'm almost tired of hearing it. Even Nissan is all talk at this point. When the lease runs out on the Leaf, I'm thinking my choices will be Leaf or Miev (lol).

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- See 3 previous
- Mcs on Jul 20, 2016
  
  @tandoor There may be a 140-mile range upgrade battery coming. We *might* even be able to move to 200-miles depending on advances in battery technology. A used Leaf with a fresh 140-mile battery might be an interesting alternative to a new 200-mile car. The current upgrade is maybe $5500. The 140-mile battery might not cost much more. Add to that maybe $8k for a used Leaf to put it in.
  
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- HotPotato on Jul 20, 2016
  
  Chevy Bolt goes into production late this year. Tesla specs at Buick prices, albeit either a Tesla or a Buick is prettier. Should be at a Chevy dealer near you by Jan 2017. See you there.
  
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- Mcs on Jul 20, 2016
  
  @hotpotato: Hyundai Ioniq with 200-mile range is coming as well, but not as soon as the Bolt. With a 200 mile range, I'd almost never need any sort of public charging. For people that can charge at home, a 200 mile Bolt will be a virtual perpetual motion machine. Plug it in every night and visiting a public charging station will be a rarity. That silent torque is awesome too. I still say the best part of an EV is the driving experience. People can debate all day about EV issues, but in the end, it's all about the driving experience. Instead of a clattering GDI 3 or 4 cylinder with a CVT and turbo, you get a small car that feels like it has a smooth and quiet V-8 under the hood.
  
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- Redav on Jul 20, 2016
  
  @HotPotato Ford is also hinting at jumping into the 200 mi EV segment. I see a lot of industry interest, but timing is a big question mark. Will they jump into the market by 2019? Doubtful, but will they be here before 2025? I really think so.
  
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