In the middle of the transformation

“The fact that the future is electric,” says Zimmermann, “has been obvious for some time.” He already wrote about the thermal management of batteries back at university in his thesis. Nowadays, nearly all manufacturers are pursuing the strategy that cars should merely purr gently in the future rather than roar loudly. From 2026, Audi will only introduce new models with electric drive onto the market – in line with the corporate strategy “Vorsprung 2030”.

Even more important than electric, however, is connectivity, the “software readiness” of all elements. “The car of the future is becoming a mobile device,” says Michel, driven by a revolution in user behavior: What was once a quick and convenient means of getting from A to B is soon to be transformed into an office or movie theater or shopping mall. All the more so with the advent of automated driving. In the future, when customers can relinquish the
actual task of driving at times, it will be the design and features of the interior that serve as the main selling points.

Technical Development is prepared for this: Instead of first designing the exterior, cars in the future will be conceived from the inside out. The interior is set to become a living environment for customers, thus dominating the entire design process. Take lighting, for example: “We are moving away from pure displays and toward communication,” explains Dietmar Scherer, Head of Strategy in Technical Development.

To keep abreast of the customer’s needs and of technological advances, Technical Development is focusing its work on a new guiding principle: continuous development rather than cyclical thinking. Instead of working toward individual milestones such as the start of production, the division acts like a tech company: The development of a model is never completed. Instead, it is continually improved and kept up to date – with software updates, for example. All with the high quality and safety standards of the Audi brand.

Another core principle is systems engineering. Whereas engineers formerly thought primarily in terms of parts, vehicles are now broken down into systems that are geared to the relevant software solutions. For example, while turn signals were once developed as a separate part, they now belong to the parking system, in which an abundance of functions such as sensors, steering and the turn signals must interact with each other. “Anyone who has not understood and internalized systems engineering will have trouble in our industry in the coming years. Whether you work in Technical Development or any other division of the company – systems engineering concerns everyone,” explains Jan Michel.

A formula was devised in September 2020 to breathe life into systems engineering, and it still applies: “The project leads, the line implements.” In other words, The product line structure that is responsible for the vehicle projects determines the “what” and “when” of products, while Technical Development is responsible for the “who” and “how.” Chef engineers, whose position was newly created, are the connecting thread, taking responsibility for the technical content and allocating the budgets.

If cars are changing, the people who develop them must be able to do different things. “We want to make sure that nobody gets left behind during the transformation. We place great emphasis on professional development,” explains Technical Development strategist Dietmar Scherer.

Reorientation is often closer than you think. At the end of 2019, for example, battery development in Ingolstadt was in need of support – and according to Zimmermann: “I was instantly able to offer my knowledge, for example in the field of vehicle tests, but I also learned a lot,” he says. Zimmermann is meanwhile responsible for battery modules in plug-in hybrids such as the Audi Q7 or Audi Q8. His task is to ensure that the batteries comply with the requirements and safety regulations outlined in the specifications.

The company offers numerous training measures, focusing on the transformation and the skills that employees will need in the future. “That is why we are investing in our employees. We have allocated a training and development budget of as much as 500 million euros up until 2025,” says Sabine Maassen, Board Member for Human Resources, “and are investing an additional 100 million euros in the transformation budget. This allows us to drive the personnel transformation from within and rely on our own workforce. These training programs play a particularly important role in Technical Development.”

In 2021 alone, around 6,000 participants from Technical Development took part in transformation-related training programs – from software development and data analytics to electric drives and charging technology to system and function development and systems engineering. Many other of the some 10,500 employees in Technical Development will receive the necessary training in the coming years – at the TH Ingolstadt, Heilbronn University of Applied Sciences or the Technical University of Munich, TÜV Süd, in the division and Group academies and at the Neckarsulm site, which is being expanded into a center of competence for electric mobility and high-voltage batteries.

Since 2018, about 500 Technical Development employees have already pursued further training in four existing university programs. For instance, Zimmermann and 20 co-workers in his new department completed a customized program at the TH Ingolstadt on battery development and management, safety issues and competition analysis – in a total of eight lectures plus a final exam.

Common to all measures is: “We know we have ambitious goals. But we are proceeding thoughtfully to achieve them and making sure we involve our employees early on,” says Edith Öchsner, Head of Resource and Process Management in Technical Development. An engine specialist is obviously not going to become a hardcore coder overnight – but why shouldn’t chassis experts expand their knowledge to include electric drives? “A basic understanding of technical development and the processes in the company is crucial,” says Zimmermann, “then new contents can be adapted quickly.”

New technology, new collaboration, new qualifications – this is an enormous undertaking that will prepare Technical Development for the challenges of the future. One thing is certain: Transformation primarily begins in the mind. It is about inspiring employees, getting them on board and motivating them to actively help shape the change. After all: “We all have to be more flexible, more adaptable and more cooperative,” says Anna Gutzmann, Project Manager for Communication and Culture. That starts with management: Top down was yesterday – today’s matrix is about reaching consensus and pursuing shared goals.

This is mirrored in a new understanding of technology: “We don’t just think about improving cars. We want to make our customers’ lives better and more simple,” says Hoffmann. Ultimately technology is not an end in itself; it needs to be what Audi refers to as “meaningful technology.” Success in development is therefore no longer measured by individual features, but by the overall customer experience.

And finally, the values. Success in the VUCA world is achieved by team players, not lone warriors. By open-mindedness rather than stubborn insistence. “The core elements of our culture are willingness, perseverance and the determination to travel new paths,” says Gutzmann.

Markus Zimmermann already knows how fulfilling it can be to break new ground. “I didn’t have the sense with the combustion engine that I could contribute anything else fundamentally new.” In comparison, batteries are parts that leave many questions unanswered: “Here I have the opportunity to do genuine pioneer work.” True to the motto of Technical Development: “Our best time is yet to come.” The transformation has only just begun. Change is now day-to-day business.