Audi Plans to Sell 800,000 EVs and Hybrid Cars by 2025
German automaker Audi announced its ambitious goals of selling 800,000 hybrid and electric vehicles by 2025. The company is looking to put the dieselgate scandal behind it and gain ground on electric carmaker Tesla in the premium electric vehicle category.
Audi plans to launch more than 20 electrified vehicles by 2025 thanks in part to Volkswagen's new MEB modular platform and vehicle underpinnings jointly developed with Porsche, it said.
That's slightly more ambitious than the 20 electrified vehicles Audi had previously targeted. Audi said it would launch the cars without undermining its 8-10 percent operating margin target.
Audi declined to provide specific details about how many fully battery electric, and how many hybrid cars it will sell by 2025. In 2017, the company sold about 16,000 semi-electric vehicles and it still lacks a fully-electric model in its lineup.
Audi delivered 1.88 million cars globally in 2017 and currently offers three plug-in hybrid models. In August, Audi is launching the e-tron sport utility vehicle, its first all-electric model.
To fund its electric-vehicle offensive through to the middle of the next decade, Audi has extended by three years until 2025, an investment program worth about 40 billion euros ($47.42 billion), it said.
To free up funds for its electric-car push Audi is ceasing production of some models, including two-door versions of its A1 and A3 vehicle lines, as well as cutting component and administration costs. The company aims to save at least 10 billion euros by 2022.
Demand for large sports utility vehicles, such as the Q5 and Q7, has helped make Audi and Volkswagen's SUV's its main profit generators.
Audi's reputation was severely damaged when the company admitted it tampered with engine management software to cheat modern emissions tests. Volkswagen, Audi's parent company, said that 11 million vehicles had defeat software installed, including 2.1 million Audi branded vehicles.
In addition to the announcement by Audi, on Tuesday, Germany's Transport Ministry said the KBA vehicle authority was investigating an additional 60,000 diesel-powered Audi cars for suspected illegal manipulation software which may have helped the carmaker cheat emissions tests.
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