Audi to cut R&D spend to jump-start electric cars: report

AUDI has given a hint of how much the Dieselgate scandal has rocked the Volkswagen Group, saying it wants to cut €10 billion ($A15 billion) from spending to fund its electric car push.

Reuters is reporting that sources close to the German carmaker are saying the push to bring five electric vehicles to market by 2022 – a plan that was fast-forwarded in the wake of the diesel emissions scandal – will bite hard into Audi’s research and development spending.

It’s part of a big shift at Volkswagen Group that is rebranding the global carmaker as a leader in electric car development. As part of the move, Audi, and its sister performance brand Porsche, have already both quit LMP1 endurance racing, where they developed advanced petrol-electric hybrid systems capable of tackling the demands of the annual Le Mans 24-hour race. Instead, they will join Formula E, a lower-cost battery-powered open-wheeler race series that appears to be a better fit with the company’s electron-based future direction.

Audi’s EV push will start next year with the e-tron quattro (above), a small battery-powered five-door SUV that Audi says will be built in Brussels from 2018. A four-door Sportback version (below) of the e-tron is expected to arrive in 2019.

The e-tron quattro, shown in near-production form at the 2015 Frankfurt motor show, will feature three electric motors, and is expected to have a range of about 500 kilometres. The e-tron Sportback, meanwhile, was shown in concept form at the Shanghai motor show earlier this year. It is expected to produce about 320kW, and sprint from 0-100km/h in about 4.5 seconds.

Both cars will go head-to-head with Californian electric car disruptor Tesla, which this weekend delivered the first of its Model 3 small sedans to customers – a significant step in building much-needed volume for the brand.

When it arrives in Australia in 2019, the most affordable Tesla model yet will cost about $55,000, with a range of about 350km. Spend more, and the range will step up to about 500km.

According to Reuters, Audi will also collaborate with Porsche to develop a new platform that will underpin future products, saving money by sharing modules and components between the brands.