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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:

Recharge Wrap-up: Smart metals, OTA updates, Rolls-Royce LNG ship

"Smart" metals could help engines reduce emissions and invigorate US business. Metallurgist and University of Wisconsin – Milwaukee professor Pradeep Rohatgi combines known metal alloys with materials like ceramics, nanoparticles, and recycled waste to produce strong, lightweight composites with self-lubricating properties that help internal combustion engines run more efficiently. Rohatgi hopes his startup, Intelligent Composites, and its products can help US foundries compete with production outsourced overseas. See the video above, and read more at Phys.org. Almost 203 million cars will be capable of over-the-air (OTA) updates by 2022, according to ABI research. While Tesla has the OTA firmware updates nailed down, other automakers will focus on software update capability. This will take the place of dealer-installed updates and - like Chrysler did after the Jeep hacking incident - updates sent to owners via USB drives. OTA updates will enhance vehicle security and reduce recall rates. Read more at Green Car Congress. European bus manufacturers have agreed upon a standardized charging interface for their electric buses. Irizar, Solaris, VDL and Volvo will use pantograph charging for "opportunity charging" and CCS plugs as the base for overnight charging and network communication. The manufacturers hope other bus makers and charging providers to join them in cooperation over standardized charging. Read more at Green Car Congress. The second Audi Autonomous Driving Cup will take place from March 22 to 24, 2016 at the automaker's Museum Mobile in Ingolstadt, Germany. The competition involves eight university teams implementing basic Audi software in 1:8 scale electric Audi Q5 models, and putting them through the paces of simulated real-world driving situations. The teams develop software architecture to use the suite of sensor to have the cars drive, park, maneuver in traffic and perform emergency braking autonomously. Teams also perform a freestyle event where they put the car through an additional task of their choosing. The winning team gets ˆ10,000, with smaller prizes for second and third place. The competition also gives the students the opportunity to showcase their skills in front of a potential employer. Read more at Green Car Congress. Rolls-Royce will provide the Liquefied Natural Gas (LNG) propulsion for an NSK cargo ship carrying fish food. The ship will deliver 2,700 metric tons of fish food to fish farms along the Norwegian coast.

Looking for meaning in Audi killing off its $1m electric supercar

Audi's most ambitious - well, most expensive, anyway – electric vehicle is no more. After building fewer than 100 of them (perhaps a lot fewer), Audi has cancelled the R8 E-Tron. Maybe it was the million-dollar-plus price tag. Maybe it was the " supreme hand-built quality." Maybe it was the fact that a non-electric R8 could be had for $164,150. Whatever the reason, was killing the R8 E-Tron a good idea? The R8 E-Tron would have been a good halo vehicle for the brand Here's the case for this being a shortsighted move. As we all know, the VW Group – and Audi especially – is in the middle of an electrification kick, and the R8 E-Tron would have been a good halo vehicle for the brand. Instead, it can stand as a prime example of waffling on the promise of plug-in vehicles. After all, Audi used to be incredibly proud of the R8 E-Tron, even if it had a tough history. The whole program was an on-again/ off-again kind of thing, but with enough momentum to get the EV some time at the Nurburgring. With both Mercedes and the EQ brand and BMW with its i brand moving strong into EVs, letting the headline be "Audi killed an EV" is not exactly fitting. It's not like Audi was wasting time making a lot of these. The R8 E-Tron went on sale in 2015 to customers who made a special request for it, and apparently only 100 did. But let's stop there. Getting 100 people to plunk down a million dollars or so for a car totals up to be a lot of money. There's no reason for Audi to price the car this high (forerunner vehicle programs almost always lose money for a time, just ask Toyota RE the Prius), but it did. And $100 million (if almost 100 were indeed sold) is nothing to scoff at, is it? It obviously wasn't enough to keep the lines and tooling open for this limited vehicle, and that sort of opens up a bigger question. Does the end (the second end, really) of the R8 E-Tron say something more important about EVs? Are they becoming less exotic high-end fixtures and more everyday transport? In a world full of Bolts and Ioniqs and E-Golfs – so, the world of 2017 and beyond – does a super high-end EV have any meaning? Gas-powered cars have managed to pull this off for decades, with Lamborghinis and Maseratis surviving just fine even with millions of Corollas out there. In a more-developed EV ecosystem, expensive EVs like the R8 should be able to do the same. Just not right now.