Audi is undertaking a significant transformation of its vehicle development processes, adopting a matrix organization model aimed at faster decision-making, clearer responsibilities, and a more streamlined structure. Gernot Döllner, Chairman of the Board of Management of AUDI AG, along with a dedicated project team, has unveiled the new collaboration framework that will redefine Product Line Management, Technical Development, and their associated interfaces within the company.
For years, Audi has utilized the Product Line Management approach, which has proven successful in practice. The shift to a matrix organization, paired with a restructuring of Technical Development, seeks to centralize decision-making and streamline management structures, thereby accelerating development timelines. “Vorsprung durch Technik and strength in innovation are two fundamental pillars of our product promise. To continue living up to our claim, we must make Audi fit for the future again,” said Döllner during an internal presentation to more than 10,000 employees involved in the transformation.
Over the past six months, more than 200 experts collaborated on the development of the new model, meticulously analyzing existing processes and structures. Their efforts have culminated in a framework designed to make Audi more efficient and adaptable to the rapid changes facing the automotive industry. “We have already achieved a lot since last fall as part of the Audi Agenda. The implementation of the matrix organization now marks the start of a decisive stage,” Döllner noted, highlighting the importance of transparency and openness in addressing the challenges ahead.
A Future-Focused Organizational Model
The core of Audi’s new vehicle development structure centers on flat hierarchies, simplified interfaces, and clearly defined roles that link responsibility and decision-making authority. The revised approach separates strategy, management, and implementation, with a focus on improving the efficiency of Technical Development. This is achieved by consolidating portfolio and product strategy into a unit that directly reports to Döllner, while operational product lines manage vehicle development projects, giving them direct access to all critical business topics and greater autonomy in decision-making.
Technical Development at Audi will focus on delivering high-quality vehicle features, systems, and functions. By aligning closely with the interfaces of each vehicle project, the division aims to maximize efficiency in design, specification, and the integration of software and electrical/electronic platforms. This increased operational capability ensures that Audi remains competitive and agile in a fast-evolving market.
Expansion to Other Divisions
The new matrix-based guidelines are set to extend beyond vehicle development, serving as the foundation for restructuring across other divisions at Audi. Döllner emphasized that the reorganization is essential for strengthening Audi’s position in a challenging automotive landscape. “Vehicle development is therefore only the first step. We must and will make Audi more efficient, more competitive, and more resilient for the future.”
