Audi bets on A2 e-tron to reverse crisis

Audi is hoping its new A2 e-tron will help reverse the downturn affecting the carmaker and its parent company, Volkswagen, BR reports. The electric model is being produced at Audi’s plant in Ingolstadt, where the company is facing weak markets, US tariffs and growing competition from China.

The A2 e-tron is intended to build on the success of the earlier A2 model. Audi says around 700 employees in Ingolstadt will assemble the new car, with additional staff working in body construction and the paint shop.

Production is designed to be faster, simpler and more efficient. “It is the most efficient Audi we have ever built,” Audi Chief Executive Gernot Döllner said at the official start of production.

The model will initially be built on a single shift. Production will gradually increase, a company spokesperson said. Audi has not yet disclosed specific production figures and referred instead to its annual results.

Söder calls for support for car industry

Bavarian Minister-President Markus Söder attended the production launch in Ingolstadt, underlining the importance of the factory to the state. “Bavaria is Audi country,” Söder said. “We want jobs to remain in the automotive sector.”

He said competing with China would require not only efficient models but also suitable conditions. Söder called for no ban on combustion engines and said subsidies for electric cars should be extended to used vehicles and plug-in hybrids. He described the A2 e-tron as an encouraging signal for the car market.

Innovation and expertise at the Ingolstadt location are also to be strengthened through cooperation with the Technical University of Ingolstadt. Söder held talks with company management on the sidelines of the event.

Workers fear for future of locations

Jörg Schlagbauer, head of Audi’s works council, called the A2 e-tron an important step for the Ingolstadt plant. Concerns remain high, however, because Audi is part of the Volkswagen Group, which is discussing a major cost-cutting programme.

Possible plant closures are also under consideration, including Audi’s factory in Neckarsulm, which employs around 15,000 people. Employees are asking what will happen next. Schlagbauer said the situation was serious, “very serious”, in a message to staff, adding that workers would enter upcoming talks with clear demands.

Competition weighs on Audi

Germany’s car industry is under pressure. The United States has imposed additional tariffs of 25 percent on numerous imported cars and auto parts since 2025, hurting export prospects. Audi is particularly affected because it does not have its own plant in the United States.

In China, the world’s largest car market, German manufacturers are increasingly losing price battles to domestic brands such as BYD and MG. The A2 e-tron starts at 38,200 euros, making it cheaper than many of Audi’s existing electric cars, but it remains more expensive than many Chinese competitors.

German carmakers still earn billions, but companies across the industry are implementing cost-cutting programmes and restructuring plans. They also need high profits to finance the shift to electric mobility. BMW recently announced plans to cut 8,000 jobs worldwide.