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Audi: record profit as 'biggest product initiative' in its history gets underway

Audi Group CEO Markus Duesmann   Even as the Audi Group (VOW.DE), VW’s luxury division, is in the midst of a huge EV transformation it still needs to perform where it counts — the bottom line. And so it is doing just that.  On Thursday the Audi Group - which is dominated volume-wise by Audi, but also includes Bentley, Lamborghini, and Ducati - posted record revenue and operating profit in 2022. That shouldnÂ’t be a surprise given what the industry has been seeing at the highest end of the market - record performances despite macroeconomic jitters across the globe. But that it's happening as the group is noteworthy.  “We are on the verge of the biggest product initiative in our history,” Audi Group CEO Markus Duesmann said at a news conference earlier on Thursday. “By 2025, we will have launched around 20 new models, more than 10 of which will be all-electric. We have set the course to go 100% electric. By 2027, we seek to offer an all-electric vehicle in each core segment.”   This is all part of Audi GroupÂ’s Vorsprung 2030 plan, which seeks to have all of the groupÂ’s new models be electric by 2026 — and to end traditional gas-powered engine production by 2033. To that end, the group saw EV deliveries jump 44% (in 2022) compared to 2021 to over 118,000 vehicles, with the share of EVs rising to 7.2% from 4.8% in the prior year. Audi is also launching its first EV using the PPE (premium platform electric), which was developed together with Porsche. That EV, the Audi Q6 e-tron, will be unveiled later this year. (Past Audi EVs shared corporate parent VWÂ’s electric platform.) “With the Audi Q6 e-tron, e-mobility is coming from Ingolstadt (Audi HQ) for the first time,” Duesmann said in a statement. “To this end, weÂ’re also building a dedicated battery assembly facility on site. This will enable us to retain important know-how here in Germany and train our employees in future fields.” AudiÂ’s German rivals of course are also leaning in hard on their EV transformations. That makes it all the more important that Audi get its EV strategy right—and launched in a timely manner.

Lamborghini explains how (and why) it designed the Huracan Sterrato off-roader

Lamborghini broke new ground (literally and metaphorically) by launching an off-road-ready variant of the Huracan called Sterrato. It's not the brand's first off-roader; that branch of the family tree includes the LM002 built in the 1980s and the Urus. But it's the only Lamborghini that has made the improbable leap from the track to the trail. I sat down with Rouven Mohr, the head of the firm's research and development department, to find out how and why the Sterrato came to life. Interestingly, it started with a wild idea floated by executives during a dinner. [The following has been edited for clarity.] RG: What's the story behind this car? RM: I have a personal connection to this project. The basic idea was born at a dinner I attended the first time I worked for Lamborghini, in 2017. I was eating with Maurizio Reggiani, my former boss, and Mitja Borkert, our chief designer, right after a test of the Urus. We were so happy talking about how much fun the Urus is to drive on gravel, and we said, "This would be even cooler with a super-sports car." At that time, I was responsible for whole vehicle development. When I got back to the office, I decided to take an old Huracan durability test car that was scheduled to be scrapped and build a demo car. Everybody was so in love and agreed it was very cool, but based on other priorities the company decided to stop [the project]. When [CEO] Stephan Winkelmann returned to Lamborghini, he saw the car and asked why we didn't build it. So, we restarted the project. I'm back at Lamborghini now, and it's a big pleasure for me to bring this project to the market. RG: Beyond the cool factor, what was your goal during the project? RM: This car's mission is quite easy to explain. At Lamborghini, we always have two pillars. One is performance, which means pure numbers like top speed and lap times. It's not only Lamborghini [that can deliver this], however, because a lot of other brands also have the numbers. We are always looking for something unexpected that improves the driving thrill, the overall experience, and we recognized after testing the demo car that there is really nothing comparable from the perspective of pure emotional driving behavior on the market. The mission of this car is to bring maximum driving fun, not only on the track but also on low-grip surfaces. The mission of this car is transferring the driving experience that we have from the Huracan STO on the track to low-grip surfaces.