Audi, the German vehicle maker, announced it's accelerating its efforts to churn out electric vehicles, saying it will spend €12 billion on the effort.
In a press release, Alexander Seitz, Board of Management Member for Finance, China and Legal Affairs at Audi said the money going toward electric vehicles is part of updated spending plans.
Audi wants a lineup of 30 electrified models by 2025
The aim is to have more than 30 electrified models in the lineup by 2025. It also plans to have 20 fully electric vehicles in its lineup by that time. Audi said that around 40% of its worldwide unit sales will come from all-electric and hybridized vehicles by then.
“With our Consistently Audistrategy, we are accelerating our roadmap towards electrification. Our investment planning takes this into account,” said Seitz in the press release. “At around €12 billion, we will spend more than ever before on electric mobility by 2024."
Audi's transformation plan enabled it to make a big investment
Seitz noted that Audi is able to finance the high investment required to align the business model around the electric opportunity thanks to its Audi Transformation Plan it launched two years ago. Through that, it will have freed up €15 billion for future investments by 2022. The plan has already contributed €4 billion in operating profit since it was instituted.
“With the ATP, 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, " Seitz said in the release.
Earlier this week it announced it was cutting its workforce by 9,500 as part of the shift to electrification. The electric vehicle initiatives will result in the addition of 2,000 jobs, just in different areas. Audi's workers signed off on the job cuts, with many of them coming from early retirement packages.
"This will take place along the demographic curve – in particular through employee turnover and a new, attractive early-retirement program. An equivalent percentage staff reduction will take place in management," Audi said of the workforce reductions. "Nonetheless, Audi will continue to recruit in the coming years. The company plans to create up to 2,000 new expert positions in areas such as electric mobility and digitalization."