Audi Allocates €$14 Billion for Advanced Tech through 2023

December 04, 2018 at 9:15 AM

Audi AG plans to invest 14 billion ($15.9 billion) on electric mobility, digitalization and autonomous driving technologies over the next five years.

The plan covers spending for research and development, plus capital expenditures on land, new plants and equipment. The investment will account for 35% of Audi’s planned expenditures through 2023, with the share dedicated to new mobility rising each year.

To help fund the investments, the carmaker is rolling out a cost-cutting initiative to reduce complexity, utilize synergies and discontinue activities that are “no longer relevant” to customers. Dubbed the Audi Transformation Plan, the scheme is expected to save €1 billion ($1.1 billion) this year alone.

The carmaker describes the investment strategy as a focused and “systematic approach” to electric mobility. By 2025, Audi will offer about 20 electrified models—half of which will be all-electric—starting with the e-tron crossover vehicle (pictured) being launched now in Europe.

Audi also aims to digitalize its cars and plants. This includes new digital services such as "functions on demand."