Audi R&D budget “unaffected” by emissions scandal

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Audi says it is pressing ahead with global R&D investment and has not compromised its future model strategy in any way despite being implicated in Volkswagen's controversial diesel emissions scandal last year.

The German luxury subsidiary of the Volkswagen Group devoted €228 million in 2015 to addressing the hefty repair bill and potential litigation costings as a result of its association with deliberate emissions cheating software, new financial data shows. A 2.0-litre TDI engine commonly found in the A4 sedan is among those affected by the Volkswagen saga.

Despite the fallout, Audi's head of technical development, Stefan Knirsh, said the car maker was pressing ahead with its R&D investment – particularly in the areas of alternative drivetrains and autonomous technology.

"The R&D budget is increasing," he said.

"It's increasing year on year, we have an increase of about 5 per cent because we are aware we have to increase that money in the new technology and for some new technologies Audi has the leadership in the Volkswagen Group.

"I mentioned today for example that we have taken over fuel cell leadership and we have to fund the technologies and the work that has to be done in these new technologies.

"We are looking carefully at our R&D expenses but we will never harm our future, especially when it comes to future projects."

Rather than deleting existing project that may not have an immediate relevancy, such as niche and sporty models, Knirsche said Audi would continue to "prioritise" what is best for the company's bottom line.

"We are prioritising projects as we do every time, he said.

"We're looking the highest priorities and then are mega trends like the digital issue, electrification and autonomous driving. These things have higher priority today in terms of budget."

That new strategy may soon implicate Audi's motor sportoperations. Before the fallout of the diesel emissions saga, Audi had been linked with a potential tie-up in Formula one.

"Formula One for Audi is currently not a topic," Knirsche insisted.

"We are still focusing on the World Endurance Championship and the DTM. Of course we want to win this year."