💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

VW's Audi and Porsche to join forces on vehicle development

Published 04/05/2017, 11:45 AM
© Reuters. Logo of German car manufacturer Audi is seen at a building of a car dealer in Duebendorf
VOWG_p
-

FRANKFURT (Reuters) - Volkswagen Group's (DE:VOWG_p) Audi and Porsche brands will join forces on vehicle development, the two upmarket brands said on Wednesday, to help the world's largest carmaker save money in the wake of its costly emissions test cheating scandal.

The pact comes as Volkswagen (VW) Chief Executive Matthias Mueller, who previously worked as Porsche's CEO and Audi's head of product management, finalizes a plan to step up development of autonomous cars, electric vehicles and digital services.

Porsche and Audi said the focus was on jointly developing shared vehicle platforms, modules and components, in a deal that follows a period of intense in-house competition for development resources.

Projects will be jointly headed by representatives from each brand. In the coming months, joint teams will prepare the specific areas of cooperation and define a roadmap to 2025, they said.

Porsche, taken over by VW 2012, has emerged as a strong rival engineering center to Audi. Porsche's MSB platform, used for its four-seater Panamera model, has been adopted for VW group's next generation Bentley Continental model even though Audi had developed a similar offering.

Since the group's emissions test cheating on diesel engines was exposed in September 2015, Audi has lost two research and development chiefs and the head of its automotive electronics division, who did pioneering work in the area of autonomous driving and battery technology.

Audi remains the group's center of excellence for sport-utility vehicles, a lucrative and growing market, where it supplies platforms to Porsche and other brands such as Bentley.

With self-driving vehicles likely to play a major future role in the industry, Audi also develops autonomous cars for the group.

But a separate internal race has begun to become an engineering hub for electric vehicles, a field which includes research and development of battery cells, battery packs and electric motors.

Porsche has developed the J1 electric cars platform, while Audi has also worked on its own electric car.

© Reuters. Logo of German car manufacturer Audi is seen at a building of a car dealer in Duebendorf

Porsche has also taken over production of eight-cylinder gasoline engines for large sportscars for the VW group, even though Audi has its own engine factory in Hungary.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.