Audi says it needs to 'get back on track', and a sports car will help it
'I don't want to beat around the bush, we have to get back on track now,' said Gernot Döllner in translated remarks published by German publication BILD.
'We've needed the last two years to clean up.'
An unnamed source from within parent company Volkswagen Group's board was even more frank, telling BILD that 'Audi is our crisis case' and calling its current models 'okay – average'.
CarExpert can save you thousands on a new car. Click here to get a great deal. Supplied Credit: CarExpert
ABOVE: Audi TT
Mr Döllner has a laundry list of things he wants to do to help burnish the brand's image, including more humour in its advertising and more 'clarity' in its design.
Audi is also looking ahead to an 'identity builder' that'll be revealed shortly before this year's Munich motor show in September.
It'll be an electric vehicle (EV) but also 'a highly emotional sports car – not a TT, not an R8, but something in between'.
Mr Döllner even said, 'I have a gut feeling that we are on the verge of such a TT moment,' referring to the impact of the original TT which entered production in 1998. Supplied Credit: CarExpert
ABOVE: First-generation Audi TT
That suggests not only the introduction of a distinctively styled and sporty vehicle, but also one that could set the design direction for the brand moving forward.
September's reveal won't be a mere concept car either, with the Audi boss confirming it will enter production. It'll fill a gaping void in Audi's lineup too, as the TT and R8 have exited production and the brand no longer builds any coupes or convertibles.
But a new sports car alone won't fix things at Audi.
The company, like others within the VW Group, has had to contend with software delays and issues out of the recently reorganised Cariad division. Supplied Credit: CarExpert
ABOVE: Audi SQ7
As with brands like Porsche, it's also undertaking large-scale cost-cutting efforts. This includes removing a level of management, slashing the number of committees from 130 to 35, and warning more job cuts will come between now and 2029.
As Mr Döllner told the publication: 'Audi must become a different company.'
Like other luxury brands from Europe, it has had to contend with a changing climate in both China and the US.
In the former, increasingly sophisticated domestic offerings have been luring buyers away from foreign brands, while in the latter tariff uncertainty has upended product plans. Supplied Credit: CarExpert
ABOVE: Audi E5 Sportback
This weekend's announcement of a 15 per cent tariff imposed by the US government on European imports, including cars, does at last provide some clarity.
Audi isn't retreating from either market. It's weighing a US plant, like that which BMW and Mercedes-Benz have, but Mr Döllner says it must be profitable. It currently builds vehicles in Mexico for markets like the US, where these are now impacted by tariffs.
It's also rolling out a separate brand in China, confusingly called AUDI, which will offer models tailor-made for that market developed in partnership with MG parent company SAIC Motor. This includes the already revealed E5 Sportback. Supplied Credit: CarExpert
China is by far Audi's largest market, with 649,900 vehicles delivered there in 2024 – 92 per cent of those produced locally. That's more than twice as many vehicles as it delivered in its next largest markets of Germany (198,342) and the US (196,576).
Audi recently delayed its transition to being an EV-only brand, with cooling demand for luxury EVs in major markets forcing the move as it has with many other brands.
The brand had previously confirmed it would be EV-only outside of China by 2033, but now the goal has been shifted to 2035.
After Audi's global deliveries rose 17.4 per cent in 2023 to 1,895,240, they slumped 11.8 per cent in 2024 to 1,671,218. Its EVs also took a 7.8 per cent hit, falling to 164,480 deliveries. Supplied Credit: CarExpert Supplied Credit: CarExpert Supplied Credit: CarExpert Supplied Credit: CarExpert
ABOVE, clockwise from top left: New-generation A6, Q5, Q3, and A6 e-tron
Sales in Europe fell 11.1 per cent, in China by 10.9 per cent, and the US by 14 per cent. In Australia, they fell by 19.5 per cent to 15,333.
But Audi has been busily overhauling much of its product portfolio. A new Q3 small SUV enters production this year, following the launch of new-generation A5, Q5 and A6 models, plus new EVs in the A6 e-tron and Q6 e-tron.
With a much fresher portfolio, Audi will enter 2026 on a more solid footing. Mr Döllner believes as much, telling BILD: 'I think we're passing the low point.'
MORE: Everything Audi
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
7NEWS
3 hours ago
- 7NEWS
How India ties into Suzuki Australia's EV plans
Suzuki Australia is gearing up for an onslaught of electrified vehicles, and it says its parent company's Indian operations will be key to getting such cars into local showrooms. Maruti Suzuki is an Indian subsidiary of the Suzuki Motor Corporation, and its largest subsidiary in terms of production volume and sales. Founded by the Indian government in 1981 as a joint venture with Suzuki, Maruti Suzuki became wholly owned by the Japanese manufacturer in 2007. Since then, it has been responsible for producing countless Suzuki models for domestic and export markets, including Australia. These models have included the Baleno, the current Jimny XL, and now the Fronx Hybrid. 'It's essentially the same brand. We are Suzuki. They are Suzuki. They are part of the organisation,' Suzuki Australia general manager Michael Pachota told CarExpert. CarExpert can save you thousands on a new car. Click here to get a great deal. 'And we control the future of products from a global perspective, the Suzuki Motor Corporation, that's the mother company. That being said, from a production perspective, the opportunities are endless. 'Some of our newest, most state-of-the-art production plants are in India now, based on the fact that, you know, they're probably running out of space in Japan.' Maruti Suzuki operates four manufacturing facilities, with two in the state of Haryana, located in northern India. One is its Gurugram plant, a 300-acre facility responsible for producing Indian examples of cars like the S-Cross and Ignis, as well as the Australian-market Jimny. The other is the Manesar plant, a larger, 600-acre facility responsible for producing the Australian-market Baleno up until the model's local axing in 2022. Combined, these two plants have a claimed annual production capacity of 1.5 million units. A third is Suzuki Motor Gujarat, located in western India. This facility opened in 2017 and has a total annual production capacity of 750,000 units across its four plants, one of which is a dedicated engine and powertrain plant. Produced in Gujarat are Australian examples of the mild-hybrid Fronx. Incoming models, like the eVitara, Suzuki's first fully electric vehicle (EV), began production at the Gujarat facility in April this year and will be sold in Australia from early 2026. Other Australian models, like the Swift Hybrid, are built in Makinohara, Japan, while the incoming Vitara Hybrid – related to the eVitara in name only – is built in Esztergom, Hungary. 'With that said, you've got to tailor to the market and be in good positions where you can distribute vehicles from an export perspective, and India is a perfect place to do so,' Mr Pachota told CarExpert. 'We have 100 Japanese staff over there doing quality control all the time as well. It doesn't matter what plant the vehicle is manufactured in, the quality will always remain undeniably Suzuki.' Additionally, Maruti Suzuki began production at its newest facility in Kharkhoda, Haryana, in February 2025, with an initial annual capacity of 250,000 units. The company has predicted this plant will become the world's third-largest car manufacturing facility once fully operational. Maruti Suzuki is also building a second manufacturing plant near its Gujarat facility with an annual production capacity of 1 million cars, which, once up and running in 2029, could serve as a launchpad for future EVs after the eVitara. 'The opportunities for EVs … eVitara will be manufactured in India, so that's the first step towards that goal,' Mr Pachota added.
7NEWS
3 hours ago
- 7NEWS
How much Volkswagen is in Lamborghini's newest supercar?
The 2026 Lamborghini Temerario supercar still benefits from broader Volkswagen Group expertise – despite there no longer being an Audi equivalent – according to the raging bull brand's chief technical officer, Dr Rouven Mohr. Due in Australian showrooms in the first half of 2026, the Temerario will be priced from $613,885 before on-road costs, sitting below the flagship V12 Revuelto, launched this year from $987,908 before on-roads. The Temerario uses a twin-turbocharged 4.0-litre V8 petrol spinning to 10,000rpm and three electric motors as part of a hybrid setup, enabling a rapid 2.7-second 0-100km/h sprint and 343km/h top speed. The new supercar replaced the Huracan as the entry-level Lamborghini, which was powered by a 5.2-litre naturally aspirated V10 petrol engine also used in two generations of Audi R8 supercar. CarExpert can save you thousands on a new car. Click here to get a great deal. The Huracan – like the Gallardo before it – was twinned to create the Audi R8 supercar for the fellow Volkswagen Group brand, giving both brands credible road-going models and sports car (GT3) racing competitors. Production of the R8 commenced in 2006 and ended in 2024. Yet the Temerario is the first entry-level Lamborghini for three generations not to share its underpinnings with Audi – making it the first since the 1988 Jalpa – with the German brand quitting sports car racing to join the Formula One grid in 2026. This doesn't mean the Italian brand was left to develop the Temerario alone given there's no Audi-equivalent this time around – but nor is it a Volkswagen parts bin special, either. 'This [being part of the Volkswagen Group] is an absolute strength,' Dr Mohr, Lamborghini's chief technical officer, told CarExpert. 'For sure, we are discussing synergy [with other VW Group models], this is clear … [but] for me, I'm fully convinced the Volkswagen company is the only group that lets the brands lead their own events.' The Lamborghini tech boss explained developing parts which have limited impact on the customer's experience is not an intelligent business approach. 'It simply doesn't make sense, to be honest – what is the differentiation factor, addition value for the for the customer, for [separate development of] the climate control?' he said.'But if you look at the at the product defining components – and I can give you also really specific examples on the car – we have the full freedom for sure.' The Temerario is loaded with 'product defining components', as Dr Mohr puts it. 'The electric front axle was a standalone development … the battery is a standalone development – we are using only in the [VW] Group cell, because we are not developing cells, chemical cells, but the battery assembly and so on [is Lamborghini].' 'Cooling concept is Lambo. Gearbox is only Lambo. Engine – people think it's based on the [Lamborghini] Revuleto [V12] engine – it has nothing to do with the Revuleto,' Dr Mohr explains. 'Because if you want to rev 10,000rpm, to be honest, you cannot start with the standard V8. You can reach a 10,000 because you start everything based on the mechanical configuration of the engine with this [10,000rpm] point [in mind], so this is completely standalone.' The V8 includes a 'hot vee', the term used to describe turbochargers mounted within the 90-degree cylinder banks, which again aren't taken from another Lamborghini or Volkswagen Group powertrain. '[The Revuleto's] turbochargers are not used [the Temerario's are smaller for better response], but there is a pump for the cooling circuit – something like that is carryover – but the rest is standalone,' the tech boss explained. 'This [synergy], I have to say, is one of the strengths. As an organisation, we became focussed on the differentiation … we could balance what is important for the brand and what is make or break to make a difference'
7NEWS
3 hours ago
- 7NEWS
Suzuki's flagship SUV hanging on, but for how much longer?
Production may have ended for Suzuki Australia's largest and most expensive SUV, but the brand insists there's still plenty of stock for prospective buyers. The S-Cross was one of five Suzukis to fall victim to updated Australian Design Rules (ADR) that outlined specific performance requirements for autonomous emergency braking (AEB) systems. This change also affected several Mitsubishi models. Suzuki Australia announced production of the S-Cross ended in February 2025, ahead of the introduction of the new rules on March 1, 2025. Know the news with the 7NEWS app: Download today Since then, there has been no confirmation on whether shipments of the S-Cross would resume with a compliant AEB system, though separate distributor Suzuki Queensland said it was axing the model. However, Suzuki Australia general manager Michael Pachota says the model is not yet extinct in showrooms. CarExpert can save you thousands on a new car. Click here to get a great deal. 'From an S-Cross perspective, based on our current inventory, we still have a long sales journey based on what we can supply and what we can sell,' he told CarExpert. 'So we're still re-evaluating that position, but we haven't made a decision yet on S-Cross' future per se. 'We'll continue selling it until we haven't got it, maybe.' Mr Pachota's vague wording doesn't inspire confidence for the resurrection of the S-Cross, at least as we know it. This isn't surprising, given the S-Cross was comfortably Suzuki's lowest-volume model in its final two full years on sale. In 2023, it chalked up 598 deliveries, below the 2016 posted by the next-closest Vitara, and followed it up with 706 in 2024, still down on the 1815 recorded by the Ignis. Production for the Vitara and Ignis also ended for Australia when the ADR axe fell. The current, Hungarian-built S-Cross, launched here in 2022 as a significant update of a model that entered production in 2013. Suzuki Australia had previously confirmed it would bring a hybrid version of the S-Cross to Australia in 2024, but this never eventuated. The outgoing car is still available on Suzuki Australia's website in both MY23 and MY24 guises, starting at $33,290 and $36,990 drive-away respectively. As for the Vitara, which was axed by the separate Suzuki Queensland entity, Suzuki Australia has confirmed an updated Vitara Hybrid and new electric eVitara will launch in early 2026. The latter will be Suzuki's first-ever fully electric vehicle (EV). When asked about early indications for the Vitara Hybrid, which has yet to be confirmed with either mild- or strong-hybrid power, Mr Pachota said he believes 'the Australian consumers are ready for a hybrid Vitara'.
