Audi looks to cut spending in face of rising tech costs

Audi is looking to reduce development, purchasing and manufacturing costs by roughly $2.5 billion in order to maintain profit margins while continuing to invest in new technology.

According to Bloomberg, Audi Chief Executive Officer Rupert Stadler wrote a letter to employees in July outlining the company’s need to preserve profit margin in the face of the ever-increasing costs of developing next-generation automobiles.

Battery-electric drivetrains, self-driving systems and communications integration were cited as large money sinks (70% of Audi’s five-year investment budget), along with the cost of building new production facilities (the other 30%).

Audi has already demonstrated a willingness to expand into self-driving vehicles and advanced hybrid drivetrains, the latter having been a focus of Audi’s endurance racing program since the introduction of the R18 e-tron quattro prototype in 2012.