In light of the sweeping electrification wave in Europe, German car makers Porsche and Audi, both part of Volkswagen Group, will join forces to create a new electric vehicle platform. The companies plan to develop a joint platform for building electric vehicles that will help them achieve costs savings in the next decade.
According to Audi’s CEO, Rupert Stadler, approximately €1 billion will be required to build the platform by 2025, that will create future savings. Porsche’s CEO, Oliver Blume, believes that production costs would be 30% higher, if production occurred independently.
By 2025, we’re facing a low single-digit billion euro sum to develop the architecture.
Porsche and Audi will pool their resources to build several new models based on the joint platform. Audi will hire 550 project developers, while Porsche will hire 300. The latter plans to develop an all electric sports car, which could be built based on the joint architecture in Leipzig, where it is already assembling its Macan sport-utility model.
If both would act on their own, costs would be 30% higher.
Audi will build 2 sedan cars in Neckarsulm and 2 sports utility models at its Ingolstadt base. The companies will start building the cars in 2021, while commercial deployment will follow several years later.
Porsche’s double budget
Earlier this month, Porsche’s Blume announced that the luxury car maker will double its budget for research and development in the field of electromobility by 2022. The company used to manage €3 billion, while currently it has €6 billion available for new electric cars and related business models. The funds will be used for hybrid extensions of existing Porsche models and for completely new, fully-electric cars.