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Audi’s electrification strategy is steering the German carmaker into the future

Henrik Wenders, Senior Vice President for Audi, tells CEO Middle East about driving an automotive brand into 2021 and beyond

Henrik Wenders, Senior Vice President for Audi

Henrik Wenders, Senior Vice President for Audi

Your new Vorpsrung Durch Technik (Innovation through Technology) strategy emphasises the shift towards electrification. Is Audi moving completely away from traditional combustion engines?

The journey in mobility has always been a long-term-oriented one. It’s taken 110 years to get to this point, and let’s see how the next 110 years will look like. One thing that’s clear is that there will be other propulsion sources besides internal combustion engines.

For now, we are very clear about the electrification strategy, and by 2025 we will have launched 30 electrified models. Of these, 20 of them will be fully electric – as distinct from hybrids. This is quite a substantial share of our portfolio, but the world is never black and white and, as a result, both powertrain technologies – electric and combustion – are crucial to our brand.

There are many markets in this world where electric mobility will not be the norm in the upcoming years as there is insufficient charging infrastructure and renewable electricity production is not in place. This is why we need both powertrains in our line-up.

How have buyers responded to the e-tron, Audi’s first electrified model?

It’s been a very positive start as the e-tron is the best-seller in its segment already. Next year is exciting as we will launch two very important bookends to our electric portfolio.

The e-tron is Audi’s first electrified model

On the one hand we have the e-tron GT, which will be the most dynamic interpretation of an electric sports car, and at the other end of the spectrum we’ll have a very important entry-level model, the Q4 e-tron. We’ve seen that our offerings need to be relevant, so their pricing, specification level and driving range must be competitive with their combustion-powered counterparts. 

So, this is when new technology becomes relevant – when it can legitimately substitute the existing technology.

Combustion engines are an integral emotional element of a car, so how does a premium brand like Audi make its electrified offerings, which obviously lack this attribute, appealing to buyers?

If you’ve driven some recent electric cars, you’ll know that beautiful feeling in your stomach when you accelerate. When you drive the e-tron GT next year you’ll also experience a spontaneous facelift as the acceleration is simply mind-blowing! When I drove the prototype, the skin of my face ended up around my ears!

In a nutshell, this is when you feel how exciting electric cars can be. Apart from the terrific acceleration, it’s also about a premium driving experience whereby there’s a real feeling of precision, and every detail being superbly executed. So, at Audi our duty is to tap into our vast engineering expertise to deliver all these attributes in our electric vehicles.

We will obviously continue to focus on attractive exterior design, but the interior of the products to come will become even more important. You’ve already seen the AI:ME and AI:CON concept cars, and these showcase our vision of a beautiful interior.

We will translate these visions into serial production cars over the coming years, and they will become examples of vehicles that are integrated into the digital grid, catering especially to those consumers who would rather look at their smartphone during their journey, rather than actively driving the car.

The e-tron Sportback is the latest addition to the growing Audi electric portfolio

Whom do you see as being the primary targets for vehicles such as the e-tron GT?

The GT will appeal to a progressive audience… those who are ready to flip the switch. We are talking about individuals with the purchase power, the curiosity and interest in next-generation technology. These are the people who had the first smartphones, the first digital connected life, and the e-tron GT is next.

Whoever is interested in living a very progressive and future-oriented lifestyle should look out for this sports car, as it meets both objectives – it delivers in terms of dynamism, while also being a CO2-friendly drive.

Electric cars are presented as a clean mobility solution, but it’s a fact that producing such cars has a bigger environmental impact, particularly as large quantities of lithium, cobalt and nickel are required for the batteries. What’s your take on this?

Our focus is not just on delivering a clean-running vehicle, but also on the entire supply chain, so all our production facilities are part of the big picture. In fact, we made our Brussels factory, where the e-tron is built, carbon-neutral in 2018 already. By 2025 production at all of our plants around the world will become carbon-neutral. So, it’s an intrinsic part of Audi’s core values that we should be a responsible company – both environmentally and socially.

Is there a danger we’ll run out of sufficient raw materials to produce batteries as the auto industry is making a profound shift towards electrification?

Based on my information, no, otherwise we’d have a big problem. All the EV product announcements we’ve made are based on secured resources. Being part of the Volkswagen Group, the largest car manufacturer in the world, also puts us in a very strong position. In addition, I know about the recycling process we have in place, so I’m confident the future can become electric.

The e-tron all-electric sportscar is designed to power a new future of performance driving

How will electricity grids around the world cope with the load created by millions of EVs plugging in to the recharging network?

I’ve been an EV driver for the past 10 years and I have a photovoltaic (solar-powered) energy system in my house, so basically I’m functioning independently of the electricity grid. The system generates enough electricity, even in the winter, so I’m leaving no emissions while driving or for my home heating needs.

Over the years I think many more will go down this path so, as you can see, there are ways of generating sufficient clean energy. With the Audi e-tron, I have access to 160,000 charging stations in 25 countries, so even travelling long-distance is no problem.

Digitisation is a big part of your new Vorsprung strategy. What does this mean for the consumer?

We have to apply our technological competency in order to deliver an experience that is consistent with what the customer expects. This begins with an online experience where customers can choose the specification and configuration of the product. With a special pair of VR glasses you could meet with a consultant and experience the car in detail without even needing to visit a dealership. In addition, with Audi Connect and Functions on Demand, we do see a comparison with the smartphone.

In the future, cars will become the most complex smart device in the world, and they’ll be an integral part of customers’ daily digital journey. With 5G and a data capacity 100 times what it is now, there will be services we cannot imagine yet, but it will be our duty to prepare the hardware so it can digest the data capacity. It will be our duty to develop more experiences and solutions that are consistent with a premium mobility experience.

The design of the Audi AI:ME is focussed on passenger comfort at every level

Are we moving more towards a model of shared mobility, as opposed to vehicle ownership?

Yes, when you look at the mobility behaviour in certain regions, it’s already real and proven. So, just as we have to provide solutions for powertrains and connectivity, we need to provide solutions to mobility behaviour. In the past the model was purchasing-based, then it became purchase or leasing, and now it’s mobility on demand.

This is the reason why we launched Audi on Demand, where you can make use of an Audi via an app on your smartphone, and there is more to come as the demand for such solutions is increasing.

Do you foresee the overall car market shrinking if more people opt for vehicle sharing, rather than ownership?

No, in fact I see it going the other way. Mobility has been a core requirement of mankind for the past two thousand years. Mobility is also linked to purchase power, especially when it comes to premium mobility. Fortunately, there has been no world war for quite some time, and this means there’s an incredible purchase power in place already.  

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