Audi scraps entry-level models and goes for luxury: “No more A1 and Q2” | Drive

The management of Volkswagen has again determined what the different brands should stand for. “We have also repositioned Audi as a premium brand,” says Duesmann. “We will limit our model range downwards and expand upwards.”

In addition to the A1, the Q2, a small SUV that Audi only brought on the market in 2016. The model no longer fits in the portfolio of the German manufacturer, it says. “We are prioritizing other segments.”

As a new flagship, Audi is currently working on a fully electric luxury sedan with a spacious interior, a new battery and new software. “We are on track and will get the model on the road by 2025,” says Duesmann. “After that, there will certainly be additional models on the platform, including variants at Bentley and Porsche.”

Automakers are facing a persistent shortage of semiconductors. Like many competitors, VW prefers to use the computer chips it can get its hands on first in the profitable, and often more luxurious models. These premium models are particularly popular in the important Chinese market.

“Within the group we try to secure the joint result. That is why we prefer models with higher profit margins,” explains Duesmann. The Audi CEO does expect the supply of semiconductors to improve in the course of the year.

Audi has a factory in Vorst in Belgium. In 2018, this was the first for the production of Audi’s first fully electric cars (e-tron and from 2019 also e-tron Sportback). In November, Duesmann also confirmed that the Q8 e-tron, an even larger electric SUV, would roll off the production line in Forest from 2026.