Audi, a subsidiary of Germany’s Volkswagen Group, plans to build a battery assembly plant near its Ingolstadt plant. At the same time, the company announced it would invest in the plant to ensure rapid growth in electric vehicle production. At present, Audi is accelerating the transformation. The company’s transformation is aimed at regaining the “territory” taken away by Mercedes-Benz and BMW and countering the pressure from Tesla.
In late November,media reported that Audi was pushing ahead with a restructuring plan to help it transition to electric vehicles. As part of its restructuring plan, the company announced plans to cut 9,500 jobs in Germany by 2025 to save some money on the electric transition.
At the time, it also said the restructuring would save the company 6bn euros ($6.6bn) by 2029, keeping its profit marginate at 9 to 11 per cent.
At the end of November, Audi also unveiled its plans for the next five years. The company plans to invest 12 billion euros ($92.9 billion) in electric vehicles by 2024. In addition, the company plans to invest about 37 billion euros in research and development, fixed assets, plant equipment and other fields by 2024.
Audi also said it plans to launch about 30 electric models by 2025, 20 of which will be all-electric models. By then, the share of new energy vehicle sales will increase from 3.5% to about 40%.
In addition, the company will launch more than 20 models in the Chinese market this year, including four new energy vehicles and 13 Audi sports models. By the end of 2021, the company will launch nine new energy vehicles in the Chinese market.
This week, Audi has phased out its plants in Ingolstadt, Konal, Brussels, Belgium, Mexico and Hungary.
Audi’s global sales exceeded 1.845 million units, up 1.8 percent year-on-year, while revenues reached 55.7 billion euros, up slightly from a year earlier, and operating profit reached 4.5 billion euros, up 27.7 percent year-on-year, according to key fiscal 2019 data released by Audi.