Audi will invest 37 billion euros by 2024 for electric mobility
Audi has planned a total amount of approximately €37 billion for research and development expenditure and investment in property, plant and equipment, as well as research and development expenditure over the next five years (2020-2024).
The current planning reflects a significant improvement in investment and cost discipline, as well as the strong prioritization of investments in roadmap towards electrification. Against the backdrop of its roadmap, the manufacturer is planning upfront expenditure of €12 billion solely for electric mobility.
By 2025, the Audi Group intends to have more than 30 electrified models in its product range – 20 of which will be fully electric. Audi intends to achieve about 40 percent of its worldwide unit sales with all-electric and hybridized automobiles by then.
In order to finance the high investment required to realign the business model, the company launched the Audi Transformation Plan two years ago. This earnings-improvement program has already contributed €4 billion to earnings and is to free up a total of €15 billion for future investments by 2022.
Furthermore, measures taken in the context of Audi.Zukunft are to free up approximately €6 billion for future investments by 2029.
Audi Cfo Alexander Seitz sayd: «With the Transformation Plan we have significantly improved our spending discipline and our focus on investment. The course has been set for Audi to return to an operating return on sales within the strategic target corridor of 9 to 11 percent in the medium term. Measures have already been identified for 80 percent of the program».