Audi CEO warns of fundamental shifts in European auto industry

Audi is undergoing significant cost-cutting measures alongside the broader Volkswagen Group as the European automotive industry faces a period of fundamental restructuring. Audi CEO Gernot Döllner stated that the industry must change fundamentally to remain viable.

To boost sales volume and attract new customers, Audi has fast-tracked the development of the A2 e-tron, a small, highly energy-efficient electric vehicle. The model focuses on aerodynamics, aiming for a consumption rate of 1.28 kWh per ten kilometers and a range of 650 kilometers on a single charge. This new entry-level model serves as a strategic response to the phase-out of previous smaller models.

The restructuring comes amid declining profits for Volkswagen, driven by falling sales in China, high production costs in Germany, US tariffs, and intensifying competition from Chinese manufacturers. Volkswagen's board recently approved a savings package that includes a target to reduce its workforce by 100,000 employees by 2030 and a significant reduction in the number of car models produced.