Audi plans to cut 10 billion euros fund electric-car push

Images of 2017 Audi R8 V10 Spyder

Audi intends to cut expenses by 10 billion euros ($12 billion) by 2022 to construct fund a shift to electric vehicles as it looks for to proceed after the emissions scandal, sources near the automaker said.

Audi, Volkswagen‘s primary profit driver, prepares to bring five new all-electric models to market in near future, beginning with the e-tron sport-utility automobile (SUV) to be put together from 2018 in Brussels.

Regardless of run-up expenses for its electric-car program, the luxury automaker wishes to keep its operating profit margin at 8 percent a year at least, 2 sources near Audi said. Its profit margin in the very first half of this year was 8.9 percent.

The bulk of the 10 billion expense savings would come from cutting research and development expenses, the sources stated.

A representative at Audi’s head office in Ingolstadt, Germany, refused comment. Handelsblatt reported the cost-savings target and profitability strategies previously on Sunday.

Audi likewise aims to maximize funds for investments in zero-emission technology by establishing a new production platform with Porsche, enabling both VW premium brand to conserve money by sharing components and modules.

Audi is grappling with vehicle recalls, prosecutor investigations and relentless criticism from unions and managers concerning the diesel emissions scandal and its method post-dieselgate.

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