Audi forced to dramatically cut costs after Dieselgate
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Audi's future vehicles will no longer feature platforms designed and engineered in house
Audi will no longer design and engineer its own platforms for future vehicles, according to German media reports, as the VW Group embarks on a sweeping cost-saving exercise to pay for huge losses associated with the Dieselgate scandal.
Respected German business magazine Der Spiegel revealed that Audi boss Rupert Stadler has indicated to company staff that "all future investments" at Audi are now "under scrutiny".
The VW supervisory board is expected to meet on 18 November to rubber stamp spending plans for the Group’s various automotive brands.
As well as suspending plans for a new crash test centre and wind tunnel, Audi may also abandon its home-grown MLB platform, which is used for models from the A4 to the A7 and A8. The mid-engined platform underpinning the R8 super car is also expected to be dropped and it’s not certain that today’s R8 will be replaced.
As Autocar has already reported, Audi’s involvement with motorsport is also under question. The highly successful LMP1 series looks like it will be officially brought to an end in the near future.
A local German newspaper has also reported that plans for a massive investment in an Apple-style technology campus at Audi’s Ingolstadt HQ have also been cancelled.
Dubbed the INovation-Campus, it would have consisted of as many as 75 buildings and would have been connected to the local motorway network with its own junction. The web pages hosting the plans being developed by architects AS+P have already been deleted.
The news comes as the Volkswagen brand operation in Wolfsburg wants to slash 10% of its overall running costs in just one year and improve the efficiency of its plants by 5-8%, removing third and weekend shifts, according to German media reports. Audi has already begun to reduce the number of shifts building its MLB-based models.
It’s thought that the next-generation Audi A4 and A5 models will be sistered with the VW Passat on the transverse-engined MQB platform. The larger Audi models - including the A6 and A7 - are expected to be built on the shortened version of Porsche’s MSB platform, which is currently used for the Panamera. This would mean the future A6 and A7 would be offered as either rear-drive or all-wheel drive.
Autocar contacted Audi for comment on the news. It said “Audi will continue to strictly maintain the features typical of its brand, and will continue fulfilling the specific desires of Audi customers.
"Even when modules are used from other members of the group, an Audi will always be identifiable as an automobile with the Four Rings; that is guaranteed by more than ten thousand employees at our Technical Development division in Ingolstadt, Neckarsulm and Györ.”
Currently Audi builds around 770,000 cars based on MLB platforms. However, even those volumes look unsustainable partly because MLB demands unique transmission systems and modified VW group engines. Audi will also be able to reign in its substantial £3.8bn annual research and development budget.
Audi forced to dramatically cut costs after Dieselgate | Autocar
Audi will no longer design and engineer its own platforms for future vehicles, according to German media reports, as the VW Group embarks on a sweeping cost-saving exercise to pay for huge losses associated with the Dieselgate scandal.
Respected German business magazine Der Spiegel revealed that Audi boss Rupert Stadler has indicated to company staff that "all future investments" at Audi are now "under scrutiny".
The VW supervisory board is expected to meet on 18 November to rubber stamp spending plans for the Group’s various automotive brands.
As well as suspending plans for a new crash test centre and wind tunnel, Audi may also abandon its home-grown MLB platform, which is used for models from the A4 to the A7 and A8. The mid-engined platform underpinning the R8 super car is also expected to be dropped and it’s not certain that today’s R8 will be replaced.
As Autocar has already reported, Audi’s involvement with motorsport is also under question. The highly successful LMP1 series looks like it will be officially brought to an end in the near future.
A local German newspaper has also reported that plans for a massive investment in an Apple-style technology campus at Audi’s Ingolstadt HQ have also been cancelled.
Dubbed the INovation-Campus, it would have consisted of as many as 75 buildings and would have been connected to the local motorway network with its own junction. The web pages hosting the plans being developed by architects AS+P have already been deleted.
The news comes as the Volkswagen brand operation in Wolfsburg wants to slash 10% of its overall running costs in just one year and improve the efficiency of its plants by 5-8%, removing third and weekend shifts, according to German media reports. Audi has already begun to reduce the number of shifts building its MLB-based models.
It’s thought that the next-generation Audi A4 and A5 models will be sistered with the VW Passat on the transverse-engined MQB platform. The larger Audi models - including the A6 and A7 - are expected to be built on the shortened version of Porsche’s MSB platform, which is currently used for the Panamera. This would mean the future A6 and A7 would be offered as either rear-drive or all-wheel drive.
Autocar contacted Audi for comment on the news. It said “Audi will continue to strictly maintain the features typical of its brand, and will continue fulfilling the specific desires of Audi customers.
"Even when modules are used from other members of the group, an Audi will always be identifiable as an automobile with the Four Rings; that is guaranteed by more than ten thousand employees at our Technical Development division in Ingolstadt, Neckarsulm and Györ.”
Currently Audi builds around 770,000 cars based on MLB platforms. However, even those volumes look unsustainable partly because MLB demands unique transmission systems and modified VW group engines. Audi will also be able to reign in its substantial £3.8bn annual research and development budget.
Audi forced to dramatically cut costs after Dieselgate | Autocar
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I feel like they already are. I checked out a new A6 and the new headlight and taillight design especially the DRL'S look cheaply assembled. The service manager also told me that they are getting excessive paint chipping complaint and thinks Audi has gone to thinner paint.
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Wow, what a colossal cluster f..k this is turning into. The end of an era I guess. Current Audis may become sought after used cars if this is true. If the B platform is going Haldex, I'm out for good.
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It's possible Audi will continue with the "quattro with ultra" roll out over the next few years (which is starting with the new allroad and next, the Q series'). This new design has shown to have the same performance as the Torsen but with better fuel efficiency. Of course, this development could be axed for cost savings as well. If so, very sad, especially if they revert to the Haldex in more models.
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A few grains of salt are needed to accept the article in the original post. MLB will continue and Audi will use the the VW MQB for some of its models. Porsche has taken over one luxury platform development that will be used by Audi and Bentley as well. Audi and Porsche together make most of the profit at VW ( I assure you they will not be sold). All manufacturers, including BMW, M-B, Porsche etc. go through phases where they need to cut costs for a period. It's not just Diesel situation, VW ( as well as others) need to prepare for a transition to electric vehicles. Although this industry transition may take longer than many feel, it has enormous implications for auto manufacturers. Their massive investments in engine technology and manufacturing capabilities will be devalued and the power train transition will be very costly. Dieselgate will cost VW the equivalent of about one year's net profit which is quite survivable. The only probelm with electric vehicles ( besides the significant technical limitations and pollution from US power plants) is that it will be more difficult for brand to distinguish themselves from the others.
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A few grains of salt are needed to accept the article in the original post. MLB will continue and Audi will use the the VW MQB for some of its models. Porsche has taken over one luxury platform development that will be used by Audi and Bentley as well. Audi and Porsche together make most of the profit at VW ( I assure you they will not be sold). All manufacturers, including BMW, M-B, Porsche etc. go through phases where they need to cut costs for a period. It's not just Diesel situation, VW ( as well as others) need to prepare for a transition to electric vehicles. Although this industry transition may take longer than many feel, it has enormous implications for auto manufacturers. Their massive investments in engine technology and manufacturing capabilities will be devalued and the power train transition will be very costly. Dieselgate will cost VW the equivalent of about one year's net profit which is quite survivable. The only probelm with electric vehicles ( besides the significant technical limitations and pollution from US power plants) is that it will be more difficult for brand to distinguish themselves from the others.
I suspect that to the average buyer these moves will be fairly transparent. The products will still be good viable products that will represent the brands well as we have known them for many years. I think the worst case is that new generations of some of their cars will be pushed back a year or two. Five years from now dieselgate will be largely forgotten.