Audi rethinks plan to launch last gas car in 2026

• Audi is reassessing its plan to phase out gas engines by 2026 due to slower-than-expected EV adoption
• Audi reported a nearly 12% drop in sales in 2024 and said it plans to cut 7,500 jobs by 2029
• Audi CEO Gernot Döllner hinted at increased production in North America

Audi CEO Gernot Döllner said the company is reassessing its plan, first announced in 2021, to launch its final model equipped with a gas engine in 2026.

Döllner made the statement on Tuesday during Audi’s annual general meeting, where he also announced that Audi will be cutting 7,500 jobs by 2029, mostly in Germany.

“We will manage the production of our last combustion engine vehicles depending on the various developments in the world markets,” he said.

Under the original plan, Audi intended to only launch electric vehicles beyond 2026 and cease selling gas-powered models by 2033 in most markets. However, Döllner said those dates needed to be reassessed due to the slower-than-expected adoption of EVs. The automaker announced last year that it will be closing its plant in Brussels, where the Q8 E-Tron is built, due to slow sales of the electric midsize SUV.

Other automakers, such as Mercedes-Benz and Volvo, also planned to phase out gas engines this decade but now intend to offer them well into the next decade.

Even with limited EVs in its lineup, Audi sales suffered significantly in 2024. The brand’s global sales dropped 11.8%, ending the year at 1,671,218 units, while its operating profits fell 38%, closing the year at 3.9 billion euros (approximately $4.3 billion).

Audi plans to turn things around by launching more than 20 new or updated models within the next two years, including new generations of the A6 and Q3 in 2025, plus a plug-in hybrid option for the A5.

Döllner on Tuesday also hinted at increased production in North America, without directly mentioning the Trump administration’s tariff threats.

“We are also currently assessing various scenarios for additional localization in North America—among other things, to be closer to the needs of local customers and to make ourselves more resilient to global economic uncertainties,” he said.

Audi currently has a plant in Mexico, where it builds the Q5. The automaker could also potentially share capacity at Volkswagen’s plant in Chattanooga, Tennessee, or possibly even at the new plant that Volkswagen Group brand Scout is constructing near Columbia, South Carolina.