
Gernot Döllner presents an energy-efficient entry-level model at the same time as the group struggles with profitability and the factory's future in Germany.
AI-generated summary
The Volkswagen Group is struggling with falling profits due to slumping sales in China and high production costs in Germany. Audi is trying to change by shortening development times and focusing on energy efficiency.
The new model was presented at an event in Paris recently. Gernot Döllner believes that the car shows Audi's renewal. With a strong focus on aerodynamics, it is the brand's most energy-efficient car. Consumption should be as low as 1.28 kWh per mile, with a range of 65 miles on a charge.
It will be Audi's new entry-level model after other smaller models have been phased out and the hope is to attract new customers to test electrics when the price tag becomes lower. The A2 e-tron also picks up on the European nostalgia trend by alluding to the cult-declared budget car A2 that disappeared 20 years ago.
- Premium is no longer just about power and speed, but about how we use the resources and then energy efficiency is an important issue, says Gernot Döllner.
Volkswagen's board recently approved a strong savings package that means 100,000 fewer employees by 2030. The number of car models is also to be significantly reduced to remedy the profitability problems. VW's falling profits are mainly due to a sales slump in China, high costs in Germany, a tariff slap in the US and new tough competition from Chinese manufacturers who are also challenging on the premium side.
- We are part of the restructuring plan and are looking at how we can concretely reduce costs, says Gernot Döllner.
Is it even possible to manufacture cars in Germany with the high cost level?
- It is a question that we must answer. We can only manufacture in Germany if we reduce labor costs. We have to make our processes and factories more efficient, says Gernot Döllner.
The factory in Neckarsulm in southern Germany, with 15,000 employees, is the one hanging loose. The largest factory in Ingolstadt, where the head office is also located, is safer. This is due, among other things, to the fact that the new A2 e-tron will be manufactured there. In the production of the new car, a large part of existing robots will be used, which reduces the need for investment.
- I have already been forced to close a factory in Brussels and it was the toughest decision in my career. I will do everything to avoid a factory closure, says Gernot Döllner.
The problems for the Volkswagen group have raised the question of the future of the entire European car industry. Gernot Döllner does not want to call it a crisis, but "fundamental upheaval".
- I think we will have a car industry in Europe, but only if we change our industry fundamentally in terms of efficiency, costs, labor costs and in some areas we have to regain the technical leadership, he says and also highlights that a changed attitude is required in the whole society for Europe to assert itself.
- We must all be prepared to make an extra effort, he says.
With the A2 e-tron, Audi has shortened the development time by around 21 months. The car has been developed in just over three years. It can be compared to the fact that it is said to take about 24 months to develop a car in China, but some do it even faster.
Is this a new standard?
- The new standard may even be faster in the future, says Gernot Döllner.
AI outlook — possibilities, not facts
Production of the A2 e-tron in Ingolstadt.
Very likely · Within months

The Swedish krona has weakened sharply in 2026 as a result of geopolitical unrest and rising global interest rates. The development benefits savers in foreign funds but puts pressure on households with variable mortgages and increases the risk of interest rate increases from the Riksbank.
For the first time, Swedes' equity assets exceed the value of their properties, according to SEB. Experts emphasize the importance of risk diversification and buffer savings, while raising warning flags about certain types of ETF investments.
Iran's crude oil exports have fallen from 1.94 million barrels per day before the war in February to preliminary figures for September, while the country's oil inventories have fallen from 90 million barrels to under 30 million barrels. The G7 countries will release up to 100 million barrels of oil and diesel from their reserves over four months, coordinated by the IEA, following pressure from the Trump administration.

CNN has been looking into Jared Kushner's venture capital firm Affinity Partners and its indirect ties to Israeli defense companies through its ownership in Phoenix Financial, which invests in arms manufacturers such as Elbit Systems. Although Kushner does not hold a government job and thus does not have to declare his financial interests, the audit shows that his company benefits from Phoenix Financial's profits, which come in part from companies that supply military equipment to Israel. Kushner's lawyers and the White House deny that his diplomatic work affects his business.

Volvo Cars lowers its full-year outlook after a global sales drop of 10.7 percent in the third quarter. The company is weighed down by strong headwinds in China and a weak recovery in the US, which negatively affects the core business's earnings and cash flow.

Volvo Cars issues profit warning after China sales plummeted by 40 percent in the third quarter. Also a slow start for the new electric SUV EX60 and declining forecasts for the full year 2026.