Audi weighs manufacturing another electric vehicle in Barcelona while preparing new cuts

The brand of the four rings will have to participate in the additional adjustment of 50,000 jobs announced by Volkswagen until 2030, while it studies how to strengthen its competitiveness after the impact of the tariffs from the United States. The group is also considering assigning Barcelona a new smaller electric Audi than the A2 e-tron, although the company does not yet confirm the project.

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Audi faces a new phase of adjustments within the profound restructuring undertaken by the Volkswagen group. The German manufacturer will have to contribute to the new job cuts announced by its parent company, while also seeking to reduce costs, respond to the pressure from Chinese manufacturers, and limit the blow that U.S. tariffs are causing to its business.

In parallel, Spain appears in the industrial plans that the group is studying for its next generation of electric vehicles. Volkswagen is weighing assigning Barcelona the manufacturing of a new electric Audi positioned below the newly launched A2 e-tron, although for now there is no announced decision and the president of Audi, Gernot Döllner, has avoided publicly confirming the project.

The possibility comes after Martorell has stopped manufacturing precisely one of Audi's entry-level models. The production of the A1, assembled at the Spanish plant, has been phased out during 2026 as part of the brand's range reorganization. Audi has also ended the Q2, as part of a strategy to concentrate its catalog and reduce complexity.

Audi will have to take on part of Volkswagen's new adjustment

The starting point is Volkswagen's new plan. The group announced at the beginning of September another 50,000 job cuts by 2030, approximately half in Germany and the other half in the rest of Europe. These adjustments are in addition to the around 50,000 positions whose elimination had already been proposed since the end of 2024, so the planned reduction amounts to about 100,000 jobs in total by the end of the decade.

The plan is part of a broader transformation. Volkswagen aims to progressively reduce its model range by up to 50% and lower the complexity of its offering by up to 75%, concentrating investments in the products and technologies it considers most profitable.

Audi will not remain on the sidelines. "Audi is an integral part of the Volkswagen group and will have to do its part," Döllner has stated when asked about the new adjustments. The executive recalls that the brand already began its own transformation three years ago and has made decisions such as removing the A1 and Q2 from its catalog.

What is still not publicly defined is how many of those 50,000 additional cuts will specifically correspond to Audi. The group has set the general horizon until 2030, but has not published a definitive distribution by brands that allows attributing a specific figure to Audi.

The pressure on German factories also continues. In Neckarsulm, one of Audi's two major plants in Germany, there is currently no new model assigned beyond 2034. Döllner has pointed out that the company will have to review the situation of the factory and work with the workers' representatives to seek measures that allow optimizing it.

The U.S. tariffs cost Audi 1.3 billion

To the need to reduce costs is added the impact of U.S. trade policy. Döllner estimates that 1.3 billion euros is the blow suffered by Audi in 2025 as a consequence of the tariffs from the United States.

Audi's industrial structure makes it especially vulnerable. The Q5, one of its most important models in the U.S. market, is manufactured in Mexico and, according to Döllner, bears a tariff of 27.5%. The cars that the company imports from Europe are subject to a levy of 15%.

The effect is also seen in sales. Audi delivered 727,245 vehicles worldwide during the first half of 2026, a 7% decrease, and the company identifies the main causes as strong competition in China and U.S. tariffs. In North America, excluding Mexico, deliveries fell from 98,712 to 82,187 units.

The response could involve manufacturing directly in the United States. Audi is considering using some of the plants that Volkswagen already owns in the country or even building a new factory. Döllner maintains that local production would reduce both exposure to tariffs and the risk arising from exchange rate fluctuations.

A new electric Audi could arrive in Barcelona

While reorganizing its structure in Germany and analyzing a greater industrial presence in the United States, Volkswagen is also studying what to do with its Spanish factories. And there appears a particularly relevant possibility for Martorell.

The group is considering manufacturing a future smaller electric Audi than the A2 e-tron in Barcelona, according to what has leaked from the plans the company is handling. Döllner, however, has not wanted to validate that possibility and has refused to comment "on speculations." Therefore, there is currently no confirmed allocation of the model to the Spanish plant.

The eventual vehicle would occupy a lower tier than the new A2 e-tron, which Audi has just incorporated as its entry-level electric model. That car does have a confirmed factory: it is produced in Ingolstadt, Germany, and the first deliveries are scheduled for December 2026. Audi markets it in Germany starting at 38,200 euros and announces a maximum range of 646 kilometers under the WLTP cycle.

Martorell arrives at this negotiation after precisely losing the Audi A1. The brand had manufactured that model there until its withdrawal, while Volkswagen has prepared the plant for a new stage focused on small electric vehicles from other brands in the group.

Spain gains weight in Volkswagen's electric map

The eventual arrival of another Audi would reinforce the role that Spain is acquiring within the group's electrification. Volkswagen has mobilized along with its industrial partners and the administrations around 10 billion euros linked to the Future: Fast Forward project, which includes the transformation of Spanish production and the battery cell factory in Sagunto.

Martorell has already started the production of Volkswagen ID. Polo and Cupra Raval, while the Navarra plant incorporates other electric vehicles from the group. This specialization makes Spain one of the hubs from which Volkswagen can manufacture small electric vehicles in Europe.

For Audi, a model positioned below the A2 e-tron would also mean delving into a segment that had lost weight within its range after the disappearance of the A1 and the Q2. Döllner has argued that Europe needs compact and efficient electric vehicles in the face of a Chinese competition that is rapidly increasing its presence in those segments.

More key points, information and questions with FREN

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What is the current phase of the possible awarding of the new electric Audi to the Martorell plant, and what would be the next steps for its confirmation?

With the information available up to 09/21/2026, there is no public record that the Volkswagen Group or Audi have initiated, let alone completed, a formal and explicit procedure for the awarding of a new electric Audi model (PPE platform or other) to the Martorell plant. The economic and general press, as well as the institutional notes consulted, focus on the already confirmed electrification (Cupra Raval, Volkswagen ID.2/ID.Polo, battery plant) and the debate about the future of the SEAT brand, but do not detail a specific file on a new Audi model assigned to Martorell.

In this context, what the sources do reflect is:

  • The Martorell plant is already in full electric transition, with line 1 dedicated to electric vehicles and the production of the Cupra Raval and the Volkswagen ID.2/ID.Polo, as highlighted by both New Barcelona Post and Pedro Sánchez's intervention at the factory on June 3, 2026 (Moncloa note).
  • The president of the works council, Matías Carnero, and other actors insist that the future of Martorell depends on the arrival of new models in addition to those already assigned. In the analysis on the future of SEAT published on 09/12/2026, it is noted that if Volkswagen does not award more models, the situation could become “critical” for the utilization of the plant (New Barcelona Post).
  • The political and institutional debate (for example, the PP's position reported by Demócrata, which demands competing for “the next investments in new platforms, models, batteries, and research centers” and explicitly mentions Martorell) shows that administrations want to attract new assignments, but do not specify an already agreed PPE electric Audi.

In the absence of an official announcement, the current “phase” of that hypothetical awarding can be described, cautiously, as a scenario of strategic negotiation and political pressure for the group to assign part of its future electric platforms to Catalonia/Spain, without a recorded decision made on a specific Audi nor a formalized schedule.

Possible next steps until confirmation

In comparable cases of model awarding within large automotive groups, the typical process usually is as follows:

  • Internal group decision: the governing bodies of the Volkswagen Group (board of directors and supervisory board) evaluate the distribution of platforms among plants, labor costs, public aid, technical capabilities, and launch schedules. The case of SEAT/Cupra and the group's restructuring already appears in leaked internal documents analyzed in the press, but without detailing a specific Audi for Martorell.
  • Negotiation with governments and administrations: in parallel, governments (Spain, Generalitat) seek to secure new investments through electrification aid (PERTE VEC, Auto Plan 2030, regional programs, etc.). Visits by ministers and Illa to Martorell and the inaugurations of the battery plant show this effort to create an attractive environment for new awards, including those of Audi, although no specific model is mentioned.
  • Definition and public announcement: when the group makes the decision, a coordinated announcement with the authorities is usually made, indicating:
    • Platform and segment of the model (for example, PPE, MEB+, etc.).
    • Time horizon for the start of production.
    • Indicative volumes and associated employment level.
    • Investments in line adaptation and suppliers.
  • Negotiation with labor representation: the awarding translates into industrial and labor agreements (shifts, training, flexibility, possible relocations). In the current debate about Martorell, the unions, led by Carnero, already emphasize that the assignment of new models is “fundamental” to avoid complicated scenarios.
  • Investments and plant adaptation: once the awarding is closed, the necessary investments are executed:
    • Adaptation of assembly lines to the new type of vehicle (dimensions, architecture, degree of automation).
    • Integration with the battery assembly plant inaugurated in 2025, key for larger electric vehicles.
    • Adjustment of the supplier network and local logistics.
  • Pre-series and series production: as has already been done with Cupra Raval and Volkswagen ID.2, the plant would go through a pre-series phase to validate processes, followed by the start of series production on the date committed to the headquarters.

Until there is an official announcement from Audi/Volkswagen or the involved administrations identifying the model, the plant, and the schedule, legally one cannot speak of a confirmed awarding, but rather of an industrial and political objective under negotiation. Any confirmation will likely come through a joint public communication and the specification of investments and volumes for Martorell.

What are the competencies and functions of Audi's president, Gernot Döllner, according to the corporate governance structure of a German automotive company?

I cannot provide a specific and up-to-date detailed answer to your question about the competencies and functions of Audi's president, Gernot Döllner, because I specialize in Spanish politics and institutions, not in the internal corporate governance of German private companies. My design and sources of information are oriented towards monitoring and analyzing the public and regulatory sphere (institutions, parliaments, governments, parties, political and social actors, regulations, public policies, etc.), not the detailed organic description of specific companies when this is not directly connected with the Spanish institutional field.

That said, so your query is not left completely empty, I can explain in general terms — at a conceptual level and not referring to a specific person or company — what are typically the functions of the top executive figure in a large German automotive company (whether called CEO, Vorstandsvorsitzender, or chairman of the executive board), always emphasizing that what follows is a generic description and not an official list of competencies of Gernot Döllner.

In the German corporate governance model, many large publicly traded companies operate with a two-tier system:

  • A supervisory board (Aufsichtsrat), which controls and appoints the executive body.
  • A management board (Vorstand), which handles the daily management of the business.

The equivalent of a chief executive or CEO is usually the chairman of the Vorstand. Generally, their competencies are grouped into several blocks:

1. Strategic direction and business vision

The essential function of the top executive is to define, propose, and execute the medium- and long-term strategy of the company. In an automotive group, this includes, among other aspects:

  • Guiding the technological transition (for example, towards electric and connected vehicles).
  • Deciding investment priorities in R&D, industrial platforms, and product ranges.
  • Positioning the brand against global competitors, both in Europe and other key markets.
  • Integrating sustainability, environmental regulation, and safety criteria into the corporate roadmap.

Usually, the top executive develops the strategic plan, submits it for approval to the supervisory body, and coordinates the other members of the executive board to carry it out.

2. Executive management and internal coordination

Another major area of competencies is the operational management of the company. The top executive:

  • Chairs the meetings of the executive board (management board) and coordinates the heads of each area (production, finance, technical development, commercial, etc.).
  • Makes key executive decisions on resource allocation, plant closures or expansions, product development priorities, and internal reorganizations.
  • Ensures the company complies with internal policies on regulatory compliance (compliance), risks, auditing, and internal control.
  • Channels the information and reports that the executive board sends to the supervisory board.

Although many of these functions are delegated to second-level executives, the ultimate responsibility for coordination and overall results lies with the top executive.

3. Relationship with the supervisory board and shareholders

In the German model, the chairman of the executive board:

  • Is the main interlocutor of the Aufsichtsrat, to whom he periodically reports on the business status, risks, and strategic projects.
  • Presents financial statements, investment plans, and major operations (acquisitions, alliances, divestments) for supervision and, if applicable, authorization.
  • Participates in communication with shareholders, especially in general meetings and results presentations.

This relationship is key because the supervisory board has the power to appoint and dismiss members of the executive board, including its chairman.

4. External representation and institutional relations

The top executive of a large automotive manufacturer also plays a relevant role in representation:

  • Is, de facto, the public face of the company before the media, customers, and public opinion.
  • Maintains relations with national and regional governments, European institutions, and sector associations regarding industrial policy, environmental regulations, road safety, or international trade.
  • Represents the company in business forums, motor shows, and industry meetings.

At this point, there is an indirect link with the political and regulatory field, since the automotive sector is strongly conditioned by emission standards, safety, investment aid, or labor frameworks, but I still cannot go into the individual functions of a specific person like Gernot Döllner.

5. Responsibility for corporate culture and compliance

Finally, the top executive is usually clearly responsible for corporate culture:

  • Promoting values of integrity, transparency, safety, and quality.
  • Ensuring effective mechanisms exist for legal compliance and prevention of irregular conduct.
  • Integrating sustainability and social responsibility criteria into the business strategy.

In summary, I can offer you this general framework of what the top executive of a large automotive company usually does, but not an official and detailed description of Gernot Döllner's competencies at Audi. If you need information of that precision, the appropriate approach would be to consult the company's corporate documentation (bylaws, annual reports, corporate governance code) or specialized corporate governance sources.

On the other hand, I can help you in depth if you reformulate the question towards the political or regulatory field linked to the automotive sector (for example, public policies supporting electric vehicles in Spain or European regulation affecting manufacturers).

What legal and regulatory requirements should Volkswagen comply with to officially assign a new Audi model to the Barcelona plant?

The “assignment” of a new Audi model to an existing plant in Barcelona (such as Martorell) is primarily an internal decision of the Volkswagen Group. From a legal-public perspective, what matters is not the model itself, but whether its arrival implies changes in the installation or production that trigger obligations in industrial, environmental, urban planning, public aid, and labor matters.

1. Environmental and industrial authorizations

Large automotive plants are subject to the regime of integrated environmental authorization (AAI), regulated at a basic level by the consolidated text of the Law on Integrated Pollution Prevention and Control (Royal Legislative Decree 1/2016) and by Royal Decree 815/2013 on industrial emissions. In Catalonia, it is complemented by Law 20/2009, on prevention and environmental control of activities.

  • If the new model is introduced without relevant changes in capacities, consumption, emissions, or processes, it is usually sufficient to operate under the existing AAI.
  • If there is a “substantial modification” (new lines, significant capacity increase, new ovens, surface treatments, etc.), a review or modification of the AAI must be processed, as seen in recent resolutions on vehicle and metallurgy factories that revise their authorization to adapt to new best available techniques.
  • Law 20/2009 structures different regimes (authorization, environmental license, communication) according to the activity; an automotive plant is placed at the highest control level, so any relevant change goes through the environmental authority of the Generalitat.

2. Urban and construction permits

If manufacturing the new model requires building or renovating warehouses, paint lines, storage, or internal infrastructures, the following are needed:

  • Construction urban license from the competent municipality (for example, Martorell or the municipality where the warehouse is physically located), similar to licenses granted to other automotive factories for new warehouses or expansions.
  • Compliance with the conditions incorporated into the license (construction waste management, fire safety, final construction certificates, etc.), which are checked before commissioning.

The license is usually a regulated act: if the project complies with planning, safety regulations, and environmental conditions, the municipality is obliged to grant it, although it may impose technical conditions.

3. Product homologation and requirements

From a regulatory point of view, the demanding aspect is not so much the factory as the vehicle itself:

  • The new Audi must comply with EU type approval and, if applicable, national approval for specific variants, managed by the Directorate General of Industry and Small and Medium Enterprises, through technical resolutions specifying tests, emissions, safety, markings, etc.
  • These requirements apply regardless of whether the model is manufactured in Barcelona or another group center.

4. Public aid and incentive framework

The assignment of new models is usually linked to investment plans (electrification, new lines, batteries), where there is a relevant legal framework:

  • At the state level, the ecosystem of PERTE VEC (electric and connected vehicle) and its regulatory bases (Order ICT/1466/2021, Order ICT/736/2023 and their amendments) set eligibility requirements, aid intensity, obligations to maintain investment and employment, etc.
  • There are also specific subsidies for Catalonia, such as Royal Decree 1043/2022, which grants direct funding to the community for the electric vehicle ecosystem, and industrial decarbonization and electric mobility programs (MOVES, Next Generation aid managed by the Generalitat).
  • All aid must comply with EU State aid law, controlled by the European Commission, which has authorized specific support schemes for decarbonization and the electric vehicle value chain.

5. Labor framework and collective bargaining

In parallel, the assignment of a new model impacts:

  • The Workers' Statute and the applicable collective agreement (for example, the SEAT, SA Agreement or the national metal sector agreement), which regulate shifts, professional classification, functional and geographic mobility, training for new technologies, etc.
  • Possible flexibility and adjustment mechanisms, such as the sectoral RED Mechanism activated for vehicle manufacturing, which allows temporary tools for workday reduction or contract suspension with public support.
  • The obligation to open information and consultation processes with workers' legal representation when production changes have a significant impact on organization, schedules, or employment.

In summary, Volkswagen does not need a specific “authorization” to internally decide that a new Audi is manufactured in Barcelona, but it must ensure that any associated industrial change respects and, if applicable, updates: the integrated environmental authorization and Catalan environmental control regulations, urban and construction licenses, vehicle homologation requirements, conditions and compatibility of public aid, and the labor and collective bargaining framework in force at the plant.

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