Audi declares world car development dead

AUDI says the era of the global “world car” is over, confirming that it is reorganising product development around disparate regional customer tastes while accelerating new model programs through its “project house” development strategy.

The shift has relevance for Australia, because the familiar four-ringed Audi brand is being pivoted to respond to European, North American and other Western-market tastes, while a separate ‘four-letter’ A-U-D-I brand created in partnership with SAIC is being used to target tech-focussed Chinese customers in the PRC.

Speaking with GoAuto during the international preview drive of the next-generation Q7, Audi chief technical officer Rouven Mohr said global vehicle development had become too complex for a single product to satisfy diverging tastes across Europe, North America and China.

“I think the idea of the global car – so one car that fits the world – this is gone, to be honest, because it’s not fitting anymore in the US (and) in China. You need this kind of local-for-local pillar,” said Dr Mohr.

Audi’s answer in China is a twin-pillar strategy: fully imported European cars sold into the market under the ‘four rings’ brand, and bespoke models developed with JV partner SAIC that cater to Chinese-market expectations.

The strategy explains why Audi feels it has breathing space to shift its Euro-built models away from Chinese customer needs and toward traditional Western luxury cues such as tactile controls, subtler screens and higher-grade materials.

Meanwhile, the AUDI brand in China can cater to Chinese customers’ preferences for more overt digital content, higher levels of automation, market-specific technology and, for some models, a reduced emphasis on sporty dynamics.

The split does not mean that four-ringed Audi models will disappear from China. Dr Mohr said that there remained a customer base in China that specifically wanted more understated Euro-style premium cars, even if the growth segments were elsewhere.

The comments build on remarks made to GoAuto earlier this year by Audi chief executive Gernot Döllner, who said the brand was adopting “China speed” in Europe by cutting committees and grouping key development functions into “project houses” with direct board approval access.

Dr Mohr said the strategy was now in use and producing results, with the 499-unit Nuvolari supercar, the forthcoming production version of the Concept C sportscar, and the 2028 A4 E-Tron all being developed via the “project house” approach.

“The main idea is to have the relevant people close together, close to the product, and empowering them to take fast decisions on the product side, with a clear product focus,” he siad.

According to Dr Mohr, the scale of a “project house” varies by the type of vehicle. A limited-run supercar would need far fewer people than a volume model expected to sell in large numbers and carry wider logistical and manufacturing implications.

“We were fast like never before,” he said of the Nuvolari program. “And now, at the moment, we are working in a similar approach also on the A4 E-Tron.”

For Audi Australia, the practical effect should be quicker availability of more regionally appropriate four-ringed models, rather than China-led compromises.

The latter factor is one reason why Audi cabin design became more overtly screen-forward in recent years.

Faster development cycles will also assist the German brand in responding more rapidly to emerging Chinese premium entrants that are starting to launch in markets like Australia.

Dr Mohr said Audi was not attempting to recreate the past but instead was adapting its engineering and product development strengths to suit a more fragmented and disrupted industry.

“The speed of development, especially the decision (making) speed, is much, much, much accelerated. Again, it’s speed and focus,” he said.