Audi is taking a step back from one of its boldest promises: phasing out gas engines by 2026. The brand admits the switch to electric isn’t happening as quickly as expected, and that reality is forcing some tough decisions.
The news came straight from CEO Gernot Döllner at Audi’s annual general meeting. Back in 2021, the company announced it would launch its final new combustion model in 2026, with the bigger plan to stop selling gas-powered cars entirely by 2033 in most markets. But this week, Döllner made it clear — those dates are no longer set in stone.
“We will manage the production of our last combustion engine vehicles depending on the various developments in the world markets,” he said, signaling a more cautious approach.
The slowdown in EV adoption has already hit Audi hard. In 2024, global sales dropped nearly 12%, down to 1.67 million vehicles, while operating profits tumbled 38% to 3.9 billion euros (around $4.3 billion). Demand for the Q8 E-Tron was so weak that Audi even decided to shut down its Brussels plant where the electric SUV was built.
On top of that, Audi announced it will cut 7,500 jobs by 2029, mostly in Germany — a painful reminder of how much is at stake as the industry reshapes itself.
Of course, Audi isn’t the only brand adjusting. Mercedes-Benz and Volvo also once spoke of a fast exit from combustion, but both now expect to keep selling gas-powered cars well into the 2030s.
Still, Audi isn’t standing still. Over the next two years, the brand promises more than 20 new or refreshed models, including the next generations of the A6 and Q3 in 2025, plus a plug-in hybrid version of the A5.
Looking further ahead, Döllner hinted that Audi might expand production in North America. While he avoided mentioning political tensions or tariffs, he did suggest that building more cars closer to American customers would help the brand stay flexible against global uncertainties.
Right now, Audi builds the Q5 in Mexico, but the company could share space with Volkswagen’s plant in Chattanooga, Tennessee, or even take advantage of the new factory Volkswagen’s Scout brand is constructing in South Carolina.
For now, Audi’s path forward looks less like a sprint and more like a careful balancing act between electric dreams and market realities.
- By Ahmad Harbi
- Uncategorized
