VW Group premium brand Audi says it is systematically restructuring its vehicle development area ‘in line with the principles of the matrix organisation’.

A ‘matrix organisation’ is a work structure where employees report to multiple leaders, typically a project manager and a department head – rather than a traditional hierarchy. The benefits of a matrix can include improved or quicker decision-making and proponents argue it encourages innovation.

At the same time, Audi chairman and CEO Gernot Döllner announced the reorganisation of other divisions.

Audi said the clear aim of the current matrix organisation and Technical Development transformation projects was to focus development, decision-making, and management structures, thereby accelerating the overall development process at Audi.

The launch of the new collaboration model is planned for the beginning of 2025.

“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 Gernot Döllner.

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“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,” Gernot Döllner said during an information event for the more than 10,000 employees directly involved. “I would like to thank the entire project team, who, together with our more than 200 experts, resolutely addressed uncomfortable topics. We also need this openness and transparency for the reorganization of other divisions. After all, the past few months have shown that the automotive industry is facing major challenges. Vehicle development is therefore only the first step. We must and will make Audi more efficient, more competitive, and more resilient for the future.”

The new organisational development guidelines, which will now be applied across all divisions, form the basis for the reorganization of other areas.

Audi says the target vision is one of flat hierarchies and broad organisational structures, with a reduction of interfaces, streamlining of committees, and the dedicated linking of responsibility and decision-making to defined roles.

For the new vehicle development structure, this means a clear separation of strategy, management, and implementation. To achieve this, Audi is bundling portfolio and product strategy in an organisational unit that reports directly to Gernot Döllner as Chairman of the Board of Management.

Entrepreneurial responsibility and management of vehicle development for the respective projects will be assumed by the operational product lines. In the future, this will also include direct access to all business-relevant topics and greater scope for decision-making.

Technical Development is responsible for the actual development work and holds explicit responsibility for the vehicles’ features, systems, and functions. To this end, Technical Development will align itself with the respective interfaces to the vehicle projects as efficiently as possible, Audi said. At the same time, it will have an increased ability to act concerning the specification, design, and integration of software and electrical/electronic platforms.