Report: Audi Is Delaying Tech Projects to Cut Costs

Audi AG is cutting its spending on technology through 2025 to save money on everything from improving current models to developing advanced “green” powertrains and new digital services, sources tell Reuters.

The reductions are part the brand’s contribution to efforts by parent Volkswagen Group to prepare for the growing impact of its global diesel emission cheating scandal.

Reuters’ sources say Audi will postpone construction of a test track for autonomous vehicles, a batterymaking unit and facilities in which to develop concept cars. The company tells the news service it also is postponing indefinitely plans to build a technology park, dubbed IN-Campus, in Ingolstadt.

Critics applaud the move. They say Audi has been spending more than rivals BMW and Mercedes-Benz on property, plants and equipment in spite of the benefits of scale that come from being part of VW Group.

Reuters says Audi’s works council, which represents half the seats on the company’s supervisory board, are lobbying to push ahead on IN-Campus. The council also wants Audi to build more electric cars in Ingolstadt.