Audi sticking to EV strategy despite challenges, says CEO

Audi CEO Gernot Döllner said on Tuesday the Volkswagen subsidiary was sticking to its electric vehicle strategy, despite facing challenges this year.

Audi remains committed to bringing the last vehicle with a combustion engine onto the market in 2026, Döllner told journalists at an event in the German city of Ingolstadt, with the dates set even if the details of how it's done are flexible.

The premium German carmaker wants to earn as much money from electric cars as from combustion engines by the end of the decade.

In 2024, however, it is likely to see lower sales, partly due to the introduction of new models as that usually means a drop in delivery figures ahead of the new launches.

The all-electric Q6 e-tron, developed jointly with Porsche, will arrive at dealerships in the second half after a delay of more than two years, while the A6, which is also electric, and the A5 and Q5 combustion models are also due to be launched.

Chief financial officer Jürgen Rittersberger spoke of a “transitional year”: 2024 will be even more demanding than 2023.

Cash inflow will fall to between €2.5bn (R51.47bn) and €3.5bn (R72.06bn), partly because investments in the new vehicles are imminent. In addition, there will be bottlenecks, said Rittersberger.

The CFO said Audi had launched an austerity programme to achieve its goal of a 14% return on sales, including improved sales and lower product costs, but did not give details.

Audi forecasts revenue this year at between €63bn (R1.3-trillion) and €68bn (R1.4-trillion), lower than last year, while the return on sales is set to come in at 8-10% after hitting 9% in 2023.