Audi to Lead Volkswagen Group R&D Efforts

Audi will take the lead on R&D within the Volkswagen Group, as the world’s largest automaker by sales moves to create greater economies of scale and a pooling of resources between its various brands.

The announcement, made as the Volkswagen Group releases its 2019 financial results, comes as the Wolfsburg, Germany-based company boosts investment in future technologies, including electric drivelines, 5G connectivity and autonomous-driving functions, as well as increases its software capabilities through a new division called Car.Software.

VW Group is parent company to 14 brands, including the car brands Volkswagen, Audi, Porsche, SEAT, Cupra, Bentley, Bugatti, Jetta and Skoda.

Audi already is cooperating with Porsche on the development of the PPE (premium platform electric) platform architecture for midsize-to-large electric vehicles.

Starting April 1, Audi also will take the lead for R&D across VW Group. The date coincides with the arrival of new Audi CEO Markus Duesmann. The former BMW board member responsible for purchasing succeeds Bram Schot.

Commenting on the reshuffle of responsibilities, CEO Herbert Diess says: “Given the strong dynamic of change in our industry, we are pooling our strengths in the Volkswagen Group and positioning ourselves competitively for the future.”

VW Group also announces plans to buy the 0.36% of Audi shares it does not currently own via a so-called stock squeeze-out, a move meant to increase holding in the company to 100%.

The financial results show VW Group increased its operating profit 22% in 2019 to €16.9 billion ($18.7 billion).

The Group’s 22% increase in profit was a result of strong sales of high-margin vehicles, particularly SUVs. The group sold a total of 10,975,000 cars in 2019, up 1.3% from a year earlier.

The automaker’s profit was helped by a dip in payouts and costs related to the diesel-emissions manipulation scandal. It spent €2.3 billion ($2.5 billion) on such special items in 2019, compared with €3.2 billion ($3.5 billion) in 2018.