Why Did Audi Recently Halt Production of its e-Tron SUV?

Audi had to pump the brakes, so to speak, on the production of its highly anticipated e-Tron SUV. While the halt was temporary, just a few days is all, it might be indicative of a larger problem at hand for the luxury carmaker, which is trying to make headways into the EV space.

By Jeffrey Bausch - March 20, 2020
Why Did Audi Recently Halt Production of its e-Tron SUV?
Why Did Audi Recently Halt Production of its e-Tron SUV?
Why Did Audi Recently Halt Production of its e-Tron SUV?
Why Did Audi Recently Halt Production of its e-Tron SUV?
Why Did Audi Recently Halt Production of its e-Tron SUV?

Where is the e-Tron SUV?

Let’s get down to brass tacks: Audi stopped production of the e-Tron SUV because the company was having issues resolving production issues, chief among them bottlenecks in battery supply. But, doesn’t Audi make its own batteries like Tesla and General Motors? 

What happened?

No, and herein lies the issue. The German luxury carmaker uses battery cells produced by LG Chem for its EVs. And this is not the first time this issue has occurred. Battery constraints also impacted e-Tron production just last year.

>>Join the conversation about Audi needing to scale up for battery requests right here in Audiworld.com.

How big of an issue is this for Audi?

The halt in production was temporary, lasting approximately just a week. But it’s going to become a bigger issue as sales of the e-Tron continue to increase. Just last year, Audi sold slightly north of 26,000 e-Tron vehicles. Audi of America, specifically, said that it sold close to 5,400 e-Trons. Granted, these aren’t the biggest numbers, but the trend in sales is certainly on the upswing. 

>>Join the conversation about Audi needing to scale up for battery requests right here in Audiworld.com.

How can this issue be resolved?

Simply put, Audi needs to secure a stable battery supply that is capable of scaling up production to match increased EV production over the next few years. And Audi is not the only one in this boat – a range of carmakers, from Hyundai to the likes of Jaguar, have all experienced their own EV production delays because of battery constraints.

>>Join the conversation about Audi needing to scale up for battery requests right here in Audiworld.com.

What about Volkswagen – aren’t they the parent company of Audi?

What are they doing about this issue? Fortunately for Audi, there is a path forward. Parent company Volkswagen AG is investing heavily in joint ventures with battery manufacturers like Panasonic to increase and improve control over their battery supply while also driving down costs. It’s a similar model to that which Tesla set up with Panasonic when it set up its battery factory back in 2016. General Motors and LG Chem announced their own joint venture in 2019 with a battery factory in Ohio.

>>Join the conversation about Audi needing to scale up for battery requests right here in Audiworld.com.

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