Audi aiming to slash annual costs by two billion euros

Sources close to Audi cited by Automotive News are saying the company wants to reduce annual costs by a whopping two billion euros. This decision has allegedly been taken as a measure to offset the increasing costs for investments in new technologies. It seems Audi wants to limit the costs related to development, manufacturing and purchasing in order to safeguard profit margins.

It was back in July when Audi’s CEO Rupert Stadler sent a letter to employees about a “fitness program” as a reference to the increasing costs associated with development of electric vehicles, autonomous driving technology as well as new communications systems. However, Julio Schuback who is a spokesman for Audi declined to talk about Stadler’s recent statements.

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Although Audi plans to reduce its annual costs, let’s not forget they have a massive 22 billion euro investment budget to spend over the next five years. 70 percent of the sum will be directed towards development of new products, with the company’s plans to boost model lineup from 50 to 60 cars by 2020. In addition, a large portion of the money will be going into the development of new technologies while the rest will be spent to increase manufacturing capacity, including here at the new assembly plants in Mexico and Brazil.

via europe.autonews.com

Adrian Padeanu

Long-time fan of the fabled Four Rings.