Both gasoline and diesel are finished for the four-ringed brand.
News like this would have been shocking only five years ago. It's quickly becoming the norm across the entire auto industry. Audi's CEO Markus Duesmann has confirmed to German publication Automobilwoche the immediate end of development for combustion engines, both gasoline and diesel.
"The EU plans for an even stricter Euro 7 emissions standard are a huge technical challenge and at the same time have little benefit for the environment," the CEO said. "That extremely restricts the combustion engine. We will no longer develop a new internal combustion engine, but will adapt our existing internal combustion engines to new emission guidelines." In other words, Audi has begun a gradual ICE phase-out even though the Euro 7 regulations don't begin until 2025.
However, this news should hardly come as a major surprise. The next-generation Audi A4 and A5 are already set to drop their combustion engines and all-electric models like the e-tron GT are now front and center. There's also the super-secret Project Artemis, due in 2024. Audi's decision will also have a huge effect on the Volkswagen Group as it's the conglomerate's technology leader.
The whole Dieselgate scandal, for example, began at Audi but those suspected of involvement are long gone. Engines like the W12 and the naturally aspirated V10 used by both Audi and Lamborghini are now officially on borrowed time.
There's simply no business case to retain them (at least without electrification, which has been rumored for the Huracan successor). This decision will also have a significant effect on the namesake Volkswagen brand since many of those models, including the Arteon, utilize an Audi-developed engine. Audi currently has 12 plug-in hybrids and is pursuing a goal to have 20 all-electric vehicles by 2025.
Aside from the e-tron GT, the e-tron SUV is already on sale and the more affordable Q4 e-tron will debut next month. Following Audi's decision, we wouldn't be surprised if the Volkswagen Group were to soon declare it'll become EV only by a specific year, joining the likes of General Motors and Volvo.