Audi Cuts 10 Billion Euros to Fund Electric Car Push

According to an article by Reuters, Audi aims to cut costs by 10 billion euros ($12 billion) by 2022 to help fund a shift to electric cars as it seeks to move on after the emissions scandal, sources close to the carmaker said.

Volkswagen’s main profit driver, Audi, plans to bring five new all electric models to market in coming years, starting with the e-tron sport utility vehicle (SUV) to be assembled from 2018 to Brussels.

Although there are run-up costs for its electric-car programmer, two sources close to them said that Audi aims to keep its operating profit margin at 8 percent a year at least. Their profit margin in the first half of this year was 8.9 percent.

The sources also said that the bulk of the 10 billion cost savings would come from cutting research and development costs.

A spokesman at Audi’s headquarters in Ingolstadt, Germany, declined comment, according to Reuters. On Sunday, German business daily Handelsblatt reported the cost-savings target and profitability plans.

According to Reuters, Audi also aims to free up funds for investments in zero-emission technology by developing a new production platform with Porsche, allowing both VW premium brands to save money by sharing components and modules.

Audi is grappling with prosecutor investigations, car recalls, and persistent criticism from unions and managers over the diesel emissions scandal and its strategy post-deiselgate.

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