The Ugly Truth About Audi and Electric Vehicles: A Missed Opportunity?

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I penned a colorful piece regarding the overwhelmingly positive reception of new compact EVs from brands like VW and Opel at the Frankfurt Motor Show IAA in September. I also wrote a prose narrative about my Model 3 road trip, imagining conversations with my car based on real driving experiences over 1000 miles and numerous charging stops. However, even as that adventure faded and fall’s darkness descended, something lingered in my thoughts: those grey Audis at the show. They weren’t just grey; they were the drab, almost ugly grey of ducklings, and they represented something… concerning.

The Futuristic Audi Of The Past: A Glimmer of Hope

Browsing through my IAA 2019 photos, those grey Audis sparked a wave of nostalgia for the brand. I was once a proud owner of a 2001 Audi A2 TDI 3L for over a decade. Back then, the A2 was a beacon of futuristic automotive design, and I vividly remember hoping it would evolve into an electric successor. It felt destined for electrification.

The Audi A2 boasted an advanced aluminum Audi Space Frame, complete with a double-layered floor. This design was strikingly similar to how Tesla would later integrate batteries in the Model S. It was incredibly light, remarkably strong, and surprisingly comfortable. Its drag coefficient of 0.25 was impressive for its time, and even the wheels were crafted from lightweight magnesium.

The TDI 3L engine, constructed from aluminum alloy, was a 1.2-liter 3-cylinder turbo-diesel marvel. Weighing a mere 100 kg (220 lb), it featured a low-pressure turbo that delivered a surprisingly linear power output at low RPMs. Imagine 140 Nm of torque between 1,800 and 2,400 rpm in a car weighing only 900 kg (2,000 lb). Its top speed of 100 mph was easily achievable below 4,000 rpm, resulting in a relatively quiet and efficient ride.

The transmission was a standard 5-speed gearbox, enhanced with an automatic electric actuated gear shift and clutch. The electronic engine and transmission control were revolutionary for their time, anticipating technology widely used today. This system, also found in the VW Lupo TDI 3L, demonstrated the potential for highly efficient compact cars. The “3L” designation signified these models’ ability to travel 100 km on just 3 liters of diesel fuel (78 mpg), a feat it genuinely achieved. My personal record was during a summer holiday in Sweden, achieving an average of 95 mpg over 700 miles while fully loaded!

The Audi A2, a technical triumph from Volkswagen Aktiengesellschaft (VAG), felt like a bold statement – the pinnacle of internal combustion engine efficiency. It naturally led me to believe Audi’s next groundbreaking move would be a long-range electric model. I was convinced an electric A2 was just around the corner, ready to replace my diesel version.

Was I being overly optimistic? Perhaps not. At the 2011 Frankfurt Motor Show, Audi unveiled the A2 electric concept, strikingly similar to today’s A1 models, hinting at a forthcoming production model. It featured a lithium-ion battery in the floor, storing 24 kWh of usable energy. Given Tesla’s advancements, I hoped Audi wouldn’t settle for just 24 kWh and might offer options reaching close to 40 kWh. The A2’s double floor design seemed perfectly suited for accommodating such capacity, especially considering the Tesla Model S already packed 85 kWh by 2012.

I envisioned a super-lightweight electric A2 with a 40 kWh battery matching the range of my diesel A2, which, despite its remarkable efficiency, had a tiny 20-liter (5-gallon) tank, providing an average range of 500 km (310 miles) – coincidentally, the same range as my Model 3.

Audi’s enthusiasm for the A2 was palpable. It seemed logical that VAG was working diligently to unveil the future of mobility, superseding peak internal combustion technology. The E-Tron supercar project served as a showcase for electric motor performance and battery capabilities, further fueling this expectation. However, VAG’s priorities seemed to shift towards “fossil software” rather than embracing electric hardware wholeheartedly.

The Missed Electric Opportunity: Audi’s Present Dilemma

I waited. I held onto my cherished A2. I continued waiting. But nothing materialized. Eventually, I sold my A2 just two weeks before dieselgate erupted and leased my first Nissan Leaf in 2015. A year later, I reserved a Tesla Model 3. The automotive industry was clearly shaken by the hundreds of thousands of Model 3 reservations. I was again convinced that Big Auto would finally wake up. Yet, progress remained sluggish, marked only by a series of proclaimed “Tesla killers” that failed to materialize.

Audi’s motto, Vorsprung durch technik (Lead by technology), resonated deeply when I drove my A2. Even in 2015, its design felt futuristic, albeit compact and lacking sportiness. It still felt new, remarkably solid, and featured a premium interior that belied its 200,000+ km (125,000 miles). The engine performed flawlessly, maintaining its original fuel efficiency.

The reality is, Audi should have, and could have, built a Tesla Model 3 equivalent, or even an imagined Tesla Model 2, a decade ago. The A2 concept was pure genius, embodying “Vorsprung” in every sense. It was a groundbreaking and somewhat controversial vehicle nearly two decades prior, brimming with sophisticated technology for the new millennium. While it didn’t achieve mass-market success due to its radical nature, it was a testament to Audi’s innovative spirit. Today, when people boast about their compact diesels achieving 80 mpg, it hardly seems revolutionary.

And here we are in 2019. We have the E-Tron SUV, priced three times higher than the 2001 A2, struggling to gain traction in sales. Its size, weight, and price naturally hinder its ability to outsell the Tesla Model X immediately, but perhaps sales will eventually improve. With a high-end model finally available, where are the mainstream compact EVs? We see the VW ID.3, Opel Corsa-e, Renault Zoe, Peugeot e-208, BMW i1, and even the Chevy Bolt in the US. But where is Audi’s contender?

At this year’s IAA, the Audi prototypes stood gleaming – the AI:Trail, AI:Con, AI:Race, and the AI:Me, another potential A2 successor. I was a staunch admirer of the A2 form factor then and recognize the AI:Me’s resemblance, but for me, it’s too late. My Tesla Model 3 was indeed more expensive than an electric A2 would have been, or perhaps more expensive than the production AI:Me might be, if it ever materializes. And what about electric versions of the Audi A3 and A4? “Customers don’t want them yet,” some might argue. Wrong. The crowds swarming the VW ID.3 prove otherwise. A range of mid-size premium electric models from Audi would undoubtedly find a strong market.

Could Tesla falter as Big Auto finally catches up? Some are convinced. Scott Galloway, a marketing professor at NYU Stern School of Business, stated in a recent blog post:

“…those that could lose more than 80 percent of their value or disappear: Tesla. Dear Twitter trolls: yes … I’m an idiot, I can’t do, so I teach, and I don’t understand genius. It’s a tech/energy play. I get it… Save your breath. Yes, he is a genius, Tesla has changed the world for the better (I believe this). And … Tesla doesn’t have the scale to compete in a well-run, low-margin business — auto.”

Really? Lacks scale? What about the Shanghai Gigafactory, built at remarkable speed? “Well-run, low-margin business?” How does low-margin sustain itself amidst declining sales?! Ah yes, dependable Big Auto. Too big to fail? Numerous articles now question whether size and legacy guarantee survival. But what do I know? I simply appreciate cool cars. I want to drive them or be driven by them, ideally in a way that minimizes environmental impact. If a manufacturer aims to create products enabling this, I tend to give them the benefit of the doubt and become a customer – as I did with the Audi A2 and Tesla Model 3.

I’m not trying to disparage Audi. It has a rich history. Their cars are robust and stylish. I loved my A2. My wife still misses it. My son owns a 1992 Audi 80 with a magnificent 5-cylinder 2.3 engine, so smooth it almost feels electric (almost, but I don’t want to inflate his ego). Interestingly, his old Audi’s cabin noise at highway speeds is comparable to my Model 3, which is quite telling!

So, Audi, what is the hold-up? What are you waiting for? I would have eagerly purchased an electric A2, and I’m certain I would have loved it. BMW 3-series owners might have also welcomed a genuine electric successor. While the quirky i3 has been available since 2013, many find it compromises classic BMW sporty attributes. Mercedes-Benz mid-size owners may have considered the B-class electric, only to discover it was a compliance car lacking fast charging. The market needs these premium mid-size EVs to aspire to, driving sales across all segments.

The low-margin hardware business might become secondary if a high-margin business of selling miles via advanced semi- or fully-autonomous cars takes off. That’s a different game entirely, and some companies, including Tesla, are poised to profit significantly. The Audi A2 proved that established automakers can introduce cutting-edge technology to consumers. However, the absence of a mainstream, long-range electric A2, or equivalent, in substantial numbers suggests that some of these giants risk losing to nimble newcomers.

For the record: Elon Musk didn’t set out to destroy Big Auto; he invited them to join the electric revolution.

https://youtu.be/c1BMjOQVJVQ

All photos by the author.

Feel free to use my referral code (or anybody else’s) when you buy a Tesla to get some free Supercharger miles: jesper18367

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