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Audi mulls green energy outlays to curb emissions

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Audi, which produces around 1.8 million cars a year, operates four plants in China that make about 600,000 vehicles annually as well as roughly 270,000 gearboxes. Its main location is in Changchun in Jilin province in northern China.

As carmakers shift their lineups to battery cars to reduce emissions, a vehicle’s green credentials are coming under scrutiny. Relying on fossil fuels to make and charge an EV battery eradicates much of the emissions advantage of an electric car.

Traditional manufacturers are facing the challenge of stepping up plans to replace gas-guzzlers with electric models that still generate lower profits than combustion-engine vehicles. After a bumpy start, Audi stepped up its game with the Audi E-Tron GT sportscar and the more affordable Q4 E-tron, which competes with Tesla Inc.’s Model Y. The vehicles share VW’s mass-market EV technology to save costs.  

Audi will flank the Q4 E-Tron with the mid-sized Q6 crossover next year that introduces new underpinnings for upscale EVs, which will also serve as a basis for an all-electric version of sister brand Porsche’s Macan SUV. The technology is set to be deployed in a new venture China from 2024, pending regulatory approval.

“Strategically our focus is clearly on fully-electric cars,” Rittersberger said. “We see hybrids as a bridge technology.”

The Audi CFO declined to comment on plans to enter Formula 1 racing, including a possible tie-up with British sports car producer McLaren Group. “Motorsport is always a topic at Audi,” he said. “It’s a catalyst to test new technologies.”

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