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Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video:

Audi targeting hipsters with A3 launch parties

Audi is planning quite a shindig for the launch of the A3 sedan, and it only wants young folks to show up. The Four Rings' new entry-level model will begin hitting showrooms later this month, and it is planning a launch party on April 3 at all of its roughly 280 dealers aimed at youthful, influential buyers - hipsters, for lack of a better word.
According to Automotive News, the company has sent a 64-page party-planning guide to its dealers on how to appeal these tastemakers in their late-20s to early-40s. The guide says the audience "should reflect an uncompromising spirit in a generation that refuses to settle or sell out." Audi never specifically uses the h-word in its marketing, which is good because it carries some negative connotations. However, recommendations like serving craft beer and bacon doughnuts and playing indie bands like Chvrches, Empire of the Sun and M83 certainly show that the automaker would love to gain some hipster-cred.
It may seem odd for a free spirits to desire a new Audi, but the carmaker might be playing the long con with these parties. Maybe they can't afford an A3 yet, but the $30,000 compact is likely close enough within their financial reach to at least be realistic. If the brand can appeal to them early, then they could be more likely to come back later when it's affordable.

Audi's 2025 goal for 25% EV sales? It's already happening

We were pleasantly surprised by Audi's full-throated support for plug-in vehicles at the recent Los Angeles Auto Show. That support took the form of the surprising claim that between 20 and 25 percent of new Audis sold will have a plug by 2025. The encouraging electric love fest continues in a new press release that's all about the brand's European sales. Now, US sales of the A3 E-Tron will start at some point in the next two months, so we don't know how the excellent plug-in hatch will fare here but as you can see, things are going extremely well in Europe: A year after its market introduction, the sales figures for the Audi A3 e-tron are also extremely encouraging: In Western Europe, it conquered top spot among the electric cars in the premium compact segment over the past few months. In Norway and the Netherlands one in four Audi customers is already opting for an A3 e-tron. So, after being available for 12 months across the pond, the numbers are impressive. Perhaps Audi of America CEO Scott Keogh knew that the 25 percent threshold is already a reality in two countries when he spoke to us in LA. In any case, Audi's got something to point to today when people ask if selling 25 percent of its cars as EVs is possible. If you'd like to add your dollars to Audi's plug-in sales figures, the A3 E-Tron's configurator is live. AUDI AG: European sales up six percent in November Audi remains on track: With around 147,750 deliveries (+1%) in November, the company reaffirmed its strong sales result from the prior-year month. In Europe, the Ingolstadt-based carmaker increased sales by 6 percent to around 62,300 units, despite the model changeover for its bestseller, the Audi A4. Since the start of the year, more than 1.64 million customers worldwide have chosen the brand with the four rings, up 3.4 percent. "In light of extraordinary effects in China and the model phase-out for the first-generation Q7 in the United States, we are satisfied with our sales performance in November," says Dietmar Voggenreiter, Member of the Board of Management for Sales and Marketing at AUDI AG. "The sustained high demand for Audi models in Europe and our good global order situation continue to provide momentum for the months ahead." Most recently, the brand's growth in Europe was driven particularly by the latest models: Sales of the Audi Q7, with the latest generation launched in summer, quadrupled to around 3,300 units in November.