New normal forces Audi's hand.
Audi’s pragmatic new CEO, Markus Duesmann, is attempting to balance the brand’s electric vehicle ambitions with its internal combustion inventory.
Like many other automotive companies that trade strongly in Europe, Audi has a frightful set of new emissions regulations to contend with.
The EU’s new Euro 7 engine regulations have been deemed impossible by some. Brussels is attempting to create a significant disincentive for any future petrol and diesel engine development, by setting nearly impossible standards for manufacturers to adhere to.
A 50% emission reduction has been set for internal combustion engines, by 2025. The message from politicians in Europe, to the automotive industry, could not be clearer: go electric, or go away.
Audi boss, Duesmann, has admitted that the company will attempt to keep its current diesel and petrol engines relevant, for the 2025 deadline. But an investment in new internal engine architectures or castings is simply not feasible under Euro 7.
Speaking to the Frankfurter Allgemeine Zeitung, Duesmann has confirmed that Audi will not pursue any new engine development, for petrol or diesel. Engineers in those departments will busy themselves with attempting to keep the company’s current engine portfolio ‘legal’ to 2025 and beyond.
The cost to comply with emissions will be severe, but Audi has no choice. It will cost slightly less to adapt current engines than engineering a completely new line of Euro 7 compliant engines from scratch.