Things could be worse and are already moving in the right direction, but that’s hard to communicate when you’re announcing a plan to cut 7,500 in jobs by 2029. Today was Audi’s Annual Media Conference, and most any story about that led with 7,500 job cuts in the title.
Then, out of left field also comes another story by Autocar, hinting at the return of the TT. It appears the trusted British automotive weekly, or rather their writer Felix Page, got a sidebar with Audi CEO Gernot Döllner who appears to have been particularly conversational when the chat turned to the TT and his new Head of Design and Chief Creative Officer (CCO) Massimo Frascella.
No doubt chatting about passion-driven future product is a respite when the business press smells blood talking about job loss, Who can blame him? Well, perhaps the business press who wanted more quotes, but I’m decidedly in the camp that titles like Autocar being in the building and having their own conversations is a necessary and welcome thing.
So, let’s dig in, shall we? And while I’ll get to the business summary you can find below including those job cuts, let’s start with the inspirational news first.
Döllner & Autocar on the the TT
As the chat began, Autocar‘s Felix Page asked Döllner about whether he would consider bringing back a sportscar into Audi’s portfolio. The Audi CEO responded, “For sure. That’s part of the brand’s DNA, and we have to find the right way, timing wise, to integrate it into our portfolio,” then continuing that in his, “”broad view on where Audi should be and where Audi is heading – and thinking in that direction, sports cars are an integral part of such a set-up”.
The Audi executive pointed out that digging into product expansion at a time the company is cutting jobs wouldn’t be appropriate, which makes sense. However, his taking the time to clarify his view on the brand’s priorities in this matter are more than welcome to brand aficionados who have had to watch the four rings sunset all its two-door passion cars – first R8, then TT, then A5/S5 RS 5 Coupé,
Döllner’s siting of the importance of the original “ur” quattro is probably music to the ears of longtime brand aficionados. Too too is is reference of aluminum space frame (ASF) products like the A8 and A2. Those are substantive and deep portfolio call backs to be sure, and they may very well be hinting at the previous rumor covered here about the return of the R8.
Here’s where things get interesting though. Döllner also referenced the TT, and not just the TT. It’s here he also name dropped Massimo Frascella, the aforementioned new Head of Design who signed on last year. That role got the additional name change of Chief Creative Officer, which is an interesting pivot yet to be fully understood, but it suggests a higher level of creative influence in the brand coming from the design department. And, Massimo is a notable fan of the original Audi TT.
Döllner told Autocar, “I’ve discussed that car so much with Massimo. That was an inspirational car for his whole career. When he was a young designer at Giugiaro, he took a day off when the TT was launched in Italy, went to the Audi dealer in Milan and sat in the showroom for a day just looking at the car.
“The absolutely fantastic aspect is that it seems that he somehow had Audi in his mind for his whole career. Now is the time to let Audi out of the mind of Massimo Frascella.”
Interestingly, Frascella isn’t from the same school of design Audi nor the auto industry as a whole has practiced in recent years, where flourishes help make the same egg shapes feel unique, and blatant cartoonish design is all so very busy… fast fashion for fast cars I suppose.
That’s not Massimo from what we can see. He was at Land Rover when the Defender was hatched. And while his recent arrival means we likely don’t see his work in the metal just yet, it’s what he signals that is so very interesting. See below from his Instagram feed, one I’d recommend you follow.
Döllner went on to say in the Autocar piece, “I would say he tries to optimise as much as possible, to take everything away that you don’t need for the expression, and I think that’s a unique talent.”
Editor’s Note: I used some AI renderings from @4Rings.AI in this story for illustrative purposes only. At best these AI designs reinterpret what is known about Audi design, so where it’s at or where it’s been. Where it goes in the future when pulled from the imaginations of designers like Frascella remains to be seen.
So, a New TT Then?
Don’t count on it. Döllner also suggested you can’t copy your past… or at least that’s not his plan. “You really have to analyse what the essence of Audi is and use the essence to come up with something absolutely new.”
In a lot of ways, that’s what that first TT was. Yes, the TT borrowed a name from an enthusiast-minded NSU of the late ’60s. Even still, it wasn’t bringing back anything old. Instead, it drew inspiration from the rounded smooth shapes of pre-war Auto Unions and packaged them in a more familiar way that seemed to hark the Porsche 356 in spirit in that it was based on Volkswagen mechanicals yet creating a more sporting and yet functional 2+2 result. It was none of those things then, and yet all of those things – an interesting blend of the lines and themes that was completely modern and forward looking, and at the same time was completely authentic to the Audi brand.
Before the TT, Audi hadn’t produced a coupe since the B3 / Type 8B most gloriously as the S2. That car ended production in 1996 if you don’t count the somewhat lackluster 990 Cabriolet that continued production out of the Karmann factory until 2000. Whichever you count, it was roughly a decade before the four rings produced another 2-door. That 2-door was the TT – different from anything before it, yet effortlessly expanding the schema of what an Audi was in the minds of the public.
So, it probably won’t be a TT in form, and likely not in name… maybe. Whether it is or isn’t is likely up to consumer studies and internal debates. What can be surmised though is that whatever it is, it will be likely attempt to do for Audi what that first TT did in its time.
First things First. Get the Basics Right
This brings us back to the Annual Media Conference. Audi first needs to focus on the basics and build a foundation. It seems obvious that’s “future proof” software to underpin any and all products as software defined vehicles. This largely will come from the new joint venture with Rivian. From there, an onslaught of new vehicles come forward – new A5, A6, A6 e-tron, Q3 and Q5.
To get there, they will also need to focus on other regional markets. China is one of those markets, but shifting demand has seen western car manufacturers lagging there and so the the U.S.A. comes entirely into play here.
Audi’s press release for the meeting summarized the postion on the U.S.A.
“Audi also continues to pursue market-specific regional strategies. The company plans to strengthen its market position particularly in the United States, the world’s second-largest automotive market, by launching ten new models and further product upgrades by the end of next year. The Audi Q6 e-tron has already been launched in the US market, to be followed in 2025 by the A6 e-tron and the new generations of the successful Q5, A5, and A6 combustion engine models.
On the Job Losses
Nobody ever wants to lose their job, so it’s hard to ignore this part of the story… especially if you’re business press. The basics here are this. There’s a plan to raise efficiency by cutting costs, one agreed upon by the Audi works council. The plan is to reduce costs by 1 Billion Euros annually in the medium term. Over the entire Volkswagen Group this will mean 48,000 jobs, though at Audi in particular the cut will include 7,500 jobs in Germany by 2029. VW will cut 35,000, Porsche 3,900 and Cariad 1,600.
Want a deeper dive on the results? You can find Audi AG’s associated press release HERE and further analysis from Reuters HERE.
You can also watch the full press conference with English translations below.