Audi is considering cutting production of e-tron

Audi is considering cutting production of e-tron

October 27, 2020 0 By autotimesnews

The decrease in production volumes will occur in 2021

The Belgian edition of L’Echo writes that workers at the local Audi plant, which produces the e-tron electric crossovers, have been notified of a production cut in 2021. The company itself declined to comment on this information, noting that production plans always change from year to year.

The reasons why the company decided to cut production of the e-tron are not disclosed, so we can only express our assumptions on this score. The point is definitely not in the demand, which was very high for the e-tron: in Europe, the model became the best-selling model in its class, overtaking the Tesla Model X. However, the brand’s management is most likely guided by financial considerations.

The fact is that the e-tron has become a compromise option for Audi. Seeing the success of Tesla and not being able to quickly develop and launch a series of electric cars created from scratch, Audi decided to make a model based on the Q7 gasoline crossover. With this approach, the cost of the e-tron could be higher than that of the same Tesla, which originally created electric cars.

Based on this, it can be assumed that, despite the success with buyers, e-ton generates losses instead of profit, and in general the model is needed only in order to pre-occupy a part of an important market.

However, amid the coronavirus crisis, Audi may need to save money. The company is preparing a new generation of electric models from the ground up, including the Q4 e-tron and e-tron GT. Perhaps, on the already produced e-tron crossover, they decided to save money for investment in new projects and reduce the volume of unprofitable production.