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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:

VW considering single, cheaper li-ion cell for all plug-in vehicle batteries

Volkswagen is finding rapid success in the battery electric vehicle market; especially in Europe where the e-Golf is already the segment sales leader. Recent concepts like the C Coupe GTE, Sport Coupe GTE and Cross Coupe GTE suggest more plug-in hybrids from the company are on the way, too. To make future models more economical, the German automotive giant is considering switching to a standard design for its lithium-ion battery cells. Using standardized parts is a long-accepted principle in production because it leads to economies of scale, and a company can pass on the savings to buyers or pocket the money to boost profits. VW is aiming for a massive 66-percent drop in costs by switching to a unified design, according to Heinz-Jakob Neusser, the board member in charge of development, to Automotive News. While the cells would be uniform, they could be crafted into different modules to fit each specific model. VW currently buys cells from Panasonic and Samsung for various models, but under the new plan all of the automaker's brands would switch to a single one. "We have a clear understanding in the group of a common cell," Neusser said, according to Automotive News, without suggesting when a change might happen. VW also has a few months decide on a different future for its EVs. The automaker is reportedly considering whether to use sold-state lithium-ion batteries from a US-based supplier for upcoming models. The next-gen tech could potentially give a massive boost in range while also being fireproof.

VW bringing fuel cell concept to LA Auto Show

Amid the flurry of hydrogen announcements from Toyota and Honda last night, Volkwagen has something to add: a new hydrogen fuel cell concept vehicle. This will be the first VW hydrogen fuel cell vehicle in many years – remember the Tiguan Hy-Motion back in 2008? – and it comes as a bit of a surprise. First written up by the German publication Wirtschaft Woche, VW is going to have the prototype car (not pictured) available at the ride and drive at the Los Angeles Auto Show later this week. We don't yet know what kind of vehicle will sport the hydrogen powertrain, but our money's on a Golf variant. We'll see soon enough when we get to Los Angeles. What's interesting is that there have been a number of not-so-mixed messages out of the VW executive ranks when it comes to hydrogen vehicles. VW's Japanese president, Shigeru Shoji, said in September that, hydrogen fuel cells, "may fly within Japan, but not globally." Last year, VW's electrification head Rudolf Krebs said that "hydrogen mobility only makes sense if you use green energy." Also last year, VW CEO Martin Winterkorn said it's basically impossible to build hydrogen vehicles at a "reasonable cost." Nonetheless, we're going to see a new VW H2 concept soon. Thoughts?