Audi CEO Believes €11 Billion Tech Investment Will Push Sales

AudiAudiGermany, 1909 > present83 models
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has set the goal of becoming the world leader in luxury cars and selling two million cars a year by 2020. It is on track to sell around 1.5 million cars this is year. According to Audi CEO Rupert Stadler, it is investing €11 billion in new technologies between 2013 and 2015 to make sure it reaches its goal.

“When we first went for the 2020 target we did not know how exactly the 2 million units would happen, but step by step we determined how to achieve it,” said Stadler.

He says that after extensive research, the company has decided that plug-in hybrids are the best solution for a low emissions future because they offer zero emissions range without fear of running out of charge. It is also relatively easy to incorporate them into existing models and can be built on current production lines. But in the near term, Audi will also offer vehicles in Europe fueled by compressed natural gas.

In Stadler’s opinion, pure EVs will not become viable until they have a minimum range of 299 km (186 miles), even in cold conditions.

The biggest step towards rising world sales in Audi’s near future is its new factory in Mexico that is currently under construction that will build the next generation Q5Audi Q5 Gen.1Germany, 2008 > 201663 versions
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. It is training employees locally to be ready as soon as the factory is prepared to build cars, and it has even brought some Mexican employees to Neckarsulm for training.

Crossovers and SUVs will also play a big role in Audi’s future because they have become a popular segment worldwide.

“The smaller Qs give you volume growth, the bigger Qs give you image, prestige, revenues and margins. The same works for the A line, from the A1Audi A1Germany, 2010 > present167 versions
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up to the A8Audi A8 Gen.3Germany, 2010 > present48 versions
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. Do not forget that entry models bring in many customers who are new to the brand. They also help to keep the brand young,” he said.

In regards to new products, Stadler says that the Sport Quattro Concept that the best market potential because it furthers Audi’s idea of design, harkens back to a classic name and shows future technologies like a plug-in hybrid system. He would not go so far to say whether it would make it to production.

Source: Automotive News Europe