Volkswagen wants to strengthen Audi’s role within the Group by having the Ingolstadt-based brand take the lead for research and development within the alliance.

Another key strategy is to carry out what is referred to as a squeeze-out according to German stock corporation law, thus acquiring the remaining 0.36 percent of shares currently held by minority shareholders. Right now, VW owns 99.64% of Audi, and wants the whole thing.

“Given the strong dynamics of change in our industry, we are pooling our strengths in the Volkswagen Group and positioning ourselves competitively for the future. Going forward, the Audi brand with Markus Duesmann as its new CEO will take over the lead for research & development in the Volkswagen Group and thus swiftly assume technical leadership,” stated VW Group chairman Dr. Herbert Diess.

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Duesmann, an engine development expert and former head of purchasing at BMW, will take up post as Audi’s new CEO on April 1st.

A resolution on the squeeze-out will be passed by this year’s Annual General Meeting of Audi, which was originally scheduled for May 14, 2020. Now, it will be postponed until July or August 2020.

Audi will also continue to be a stock corporation, compatible with the capital market.

“As Audi’s employee representatives, we fought for and achieved this goal,” said Peter Mosch, chairman of Audi’s General Works Council. “The brand will therefore continue to be independent within the Group.”

Meanwhile, current Audi CEO Bram Schot had this to say: “It is exactly the right way not to stick to the organizational status quo, but to consistently exploit the advantages of the Group’s network. With a greater job split at the Group, we can manage future issues more agilely and flexibly. The new structure will strengthen Audi’s role within the Volkswagen Group and recharge Vorsprung durch Technik.”

Audi has long been an R&D pillar within the VW Group, setting standards in terms of aerodynamics, lightweight aluminum construction, dual clutch transmission tech and four wheel drive systems.