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According to foreign media reports, Audi recently announced a cost-saving plan with the goal of cutting its product portfolio by 45%.

It is understood that Audi cut its model portfolio by 27% worldwide throughout 2018, not only to meet consumers' demand to reduce the complexity of models, but also to further cut costs.

Audi CEO Bram short (Bram Schot) said that market-specific gearboxes, engine combinations and certain models of cars had been cut, directly resulting in a 27 per cent reduction in the product portfolio and could be further cut.

Audi's portfolio cuts 45% of the target of the program. Short said that the final model reduction target is 40% Murray 45%, which is a new premium, a simplified premium.

While reducing its model portfolio, Audi hopes to reduce its model production line by 30% and provide more accurate service to consumers through fewer models. 'We are evaluating various models and talking about specific models, 'Mr. short said.

Audi plans to gain higher penetration at the top end of the market while attracting more young customers. For example, while models such as the A6, A7, Q7 and Q8 grow in higher-end segments, Audi needs to build cheaper small cars to attract younger consumers.

In order to further control costs, Audi also announced earlier this year plans to reduce departmental executives by 10%, to achieve the goal of reducing management costs. "one thing is clear that our basic costs are too high," said Bram Schot, chairman and chief executive of Audi's management board, adding that Audi would cut costs by $17 billion by 2022 to ensure that Audi invests in areas such as electric cars, digitization and self-driving in 2023.

According to the plan, Audi will invest 14 billion euros (109.68 billion yuan) in the field of "new four modernizations" by 2023, which will account for 1/3 of Audi's total expenditure by 2023.

In addition, Audi's next-generation A4 (B10) will no longer be based on the MLB platform with the engine vertical front layout, but will use the MQB platform with the engine horizontal layout, which will save the next-generation Audi A4 $1 billion over its entire life cycle.

While increasing investment in the new four modernizations, Audi has achieved its goal of cutting costs by $17 billion in 2022 through various cost-cutting programs.

From January to August this year, Audi's cumulative global sales were 1.2117 million, down 4.5 per cent from a year earlier, while Audi's cumulative sales in China (including the Hong Kong market) were 427400, up 2.4 per cent from a year earlier.

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