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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's CES interior concept foretells a screen-filled A8

Audi is once again offering a glimpse into its future interior-design plans at CES. The new setup is called Virtual Dashboard and is both an extension and an evolution of Virtual Cockpit, which made its debut in Vegas two years ago before winding up in the TT. While this interior mockup is pulled from Audi's recent E-Tron Quattro concept, our man on the ground at CES was told this is "very close" to the interior we'll see in the next Audi A8, which is due in a year or so. Virtual Dashboard is screen-heavy in stark contrast to Virtual Cockpit's single, driver-focussed gauge display. It keeps that and adds a pair of screens to the mix, all of them using OLED (organic light-emitting diode) tech. The central screen measures 14.1 inches diagonally and is curved with a rhomboid border; its AMOLED (active matrix organic light-emitting diode) allows for the irregular shape and curvature. Below that sits a more normal, rectangular screen; both are very well integrated into their surroundings. And as in many current Audis, the shift lever acts as a comfy wrist rest. On the top screen, drivers and passengers get what Audi calls classic information – navigation, audio, settings. The lower screen provides big favorite buttons and also houses on-screen buttons for the climate control. When it's called for, the lower display turns into an input tablet for handwritten entries, an evolution of the small separate touchpad offered in current Audis. The displays use swiping and other gestures familiar to smartphone users, which allow them to interact with each other, for example when swiping to accept a call and move its info to the gauge display. The screens provide haptic feedback that goes beyond what automakers are offering today. Our man at CES says button presses only result from deliberate presses of the screen, meaning you can rest a finger over your selection and it won't activate until you press, just like a real button. Novel. The steering-wheel controls also provide haptic feedback and have been simplified compared to what's on Virtual Cockpit today. When it hits production in the A8 and other vehicles, all of this will be built on the next generation of Audi's infotainment platform, which it's creatively calling MIB2+. It offers more computing power than the current MIB2 system, allowing it to run more displays and offer more connected services over an LTE connection.

Audi changes the guard at Quattro GmbH

Although it may not have the brand recognition that Mercedes-AMG does or BMW's M division, Audi's Quattro GmbH department is responsible for its most exciting products - including the RS line of performance models and the R8 supercar. For the past year and a half, Quattro GmbH has been led by Franciscus van Meel, but soon it will get a new leader.
According to reports, van Meel (46, pictured right) is being reassigned to head up the Audi R&D center in Beijing. In his place, Audi is promoting Heinz Peter Hollwerweger (60, pictured above) to the post. The move is expected to be confirmed in advance of the Geneva Motor Show, at which point we can expect Audi to claim that it was part of a planned rotation. However sources suggest that van Meel's departure came at the behest of R&D boss Ulrich Hackenberg, who was apparently unhappy with how van Meel has been handling development of the next R8 and of the R8 E-Tron project.
Why Hackenberg would have van Meel reassigned to run one of his own R&D centers is beyond us, but Hollerweger is apparently expected to be able to get the job done faster and better. Whether he'll have any major changes in store for the Quattro division and its products is another matter, but we're looking forward to finding out.