Audi, Porsche Agree to Collaborate to Cut Costs

Volkswagen AG’s Audi and Porsche luxury brands say they will combine much of their product development efforts around shared vehicle platforms and modular subsystems.

Such efforts will be co-directed by representatives from each brand. The two carmakers will announce details later this year about initial projects and their more general objectives through 2025.

Until now, the two units have competed for VW funding, especially in advanced engineering. Audi had been the VW Group’s lead division in technology. But that position has been challenged by Porsche since the company was acquired by VW five years ago.

Reuters says Audi is the group’s leader in SUV/crossover vehicles and autonomous driving systems. Porsche has become the group’s source for 8-cylinder gasoline engines for large vehicles. Both brands are competing on electric vehicle powertrains.