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Audi is looking to cut costs by $12 billion by 2022 in order to fund the development of more electric vehicles.
The German automaker plans on introducing five all-new EV models in the coming years, starting with a new SUV based on the e-Tron Quattro Concept in 2018. But while making all that happen, Audi wants to maintain its operating profit margin at eight percent a year, which means cutting costs while it develops new cars. Automotive News reports a bulk of the cost savings would come from the company’s research and development budget.
SEE ALSO: Audi E-Tron Sportback Production to Start in 2019
Audi also plans to free up funds by sharing the costs of development with Porsche, which also falls under the Volkswagen Group. Porsche and Audi will share components and modules on electric vehicles, which makes sense considering Porsche is also planning a strong push in the electrified market.
Volkswagen Group is still reeling financially from the ‘dieselgate’ scandal, having to deal with a significant number of recalls and also various prosecutor investigations.
[Source: Automotive News]
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