The German car company Audi has increased its forecast for sales of all-electric vehicles and plug-in hybrids and now expects its sales of this type of car to represent around 40% of its total registrations worldwide by the year 2025.
The German manufacturer is accelerating its electrification roadmap for the entire company. Thus, also by 2025, it aims to reduce the carbon footprint (CO2) of its fleet of vehicles by 30% during its entire life cycle compared to 2015 levels, as reported by the company during its shareholder's meeting in Neckarsulm (Germany).
By 2025, Audi's product portfolio will include more than 30 electrified models, of which 20 will be fully electric. The first models with PPE architecture will be available at the beginning of the next decade.
Audi intends that all its factories be neutral in CO2 emissions by 2025 and reach the total neutrality of the company by 2050 "at the latest".
For all this, Audi is implementing a new investment policy oriented to the future that includes a total payment of some 40,000 million euros over the next five years, which includes investments in property, plants and equipment, as well as research and development costs. Part of this investment (14,000 million euros) will be allocated to electric mobility, digitization and "highly" autonomous driving between 2019 and 2023.
“A prerequisite for the success of our strategic realignment is that we position Audi in a structurally efficient manner and lead it back to financial top performance. Already in 2018, we established a clearly defined program for this in the form of the Audi Transformation Plan,” says Alexander Seitz, Member of the Board of Management for Finance, China and Legal Affairs. “Recent months have shown that our measures are taking effect and that we can at least partially offset the current extraordinarily high adverse factors. We will build on this in a highly disciplined manner, because our environment and future course will continue to challenge us enormously.” Following the successful launch of the Transformation Plan, Audi has increased the program’s target to a total of €15 billion between 2018 and 2022.
Audi recorded an operating profit of 1,100 million euros in the first three months of the year, 15.3% less than the 1,300 million won in those months of last year.
Facing the end of the current year, the German firm expects a "moderate increase" in its sales, with a greater evolution in the second part of the year. In addition, it expects its operating margin on sales to be between 7% and 8.5%, still below its long-term target of between 9% and 11%. It also predicts a net cash flow of between 2,000 and 3,500 million euros.
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