Audi Making Big Commitment to Advanced Mobility

About one-third of Audi AG’s research and development budget will be allocated to automated vehicle technologies, electric cars and digital services through 2025.

The plan is expected to be outlined by CEO Rupert Stadler in a private meeting with 2,000 managers on Wednesday, according to reports by Handelsblatt and Reuters. Audi declined to comment.

Citing unnamed company sources, Reuters says Audi will consolidate its traditional engine and transmission offerings with less variance between countries to offset the increased spending on the new programs.

Last year Audi sold a record 1.8 million vehicles worldwide, and its overall r&d tab totaled €4.2 billion ($4.7 billion). The brand expects about 25% of its sales to come from EVs by 2025, according to media reports.

Audi currently sells an all-electric version of its R8 supercar. It also is developing an electric crossover vehicle based on last year’s e-tron quattro concept and expects to introduce the car in 2018.

Audi’s new plan is in line with the one announced by parent Volkswagen AG last month. As part of its “Together-Strategy 2025,” VW aims to introduce more than 30 EVs across its brands. The group also is forming a new mobility solutions business to develop and acquire ride-hailing, car-sharing and transportation-on-demand services.