Expert Insight: Audi Canada CEO on What’s in Store for 2025
To say that Audi has a big year ahead is a gross understatement. In 2025, the German luxury mainstay is bringing a barrage of next-generation gas and electric vehicles to Canada. This year marks the beginning of Audi’s next chapter. We caught up with Audi Canada president and CEO Vito Paladino to take stock of the year ahead and to talk big picture: the luxury car market, challenges facing the auto industry, and how he’ll be navigating the company through an unpredictable geopolitical landscape.
But first, for anyone who hasn’t been paying attention, we’ll recap the new models Audi has in store for 2025. Spoiler: it’s a lot. On the sedan front, buyers will get to choose between the electric A6 e-tron family and the combustion-engine A5 family. The former rides on Audi’s all-new EV platform, dubbed Premium Platform Electric or PPE, but both gas and electric sedans receive nearly identical cabins and tech. It’s the same story on the SUV side, where the new Q6 e-tron family sits alongside the new Q5 family.
What we’re most excited about, however, are all the new models the motorsport fiends at Audi Sport have been cooking up: the 900+ horsepower RS e-tron GT performance, the 600+ horsepower RS Q8, and — making its triumphant return to Canada — the all-new 400+ horsepower RS3. The brand is also saying goodbye to the beloved RS6 Avant and the R8 supercar with special limited-edition models that are sure to be future classics. As if that weren’t enough, later in the year, it’s widely rumoured Audi will unveil a redesigned version of its popular Q3 compact SUV.
So, yes, 2025 is going to be a busy one for Vito Paladino and his team.
What is the number one issue on your radar for 2025?
You need to be flexible when the market isn’t showing a clear sign. Whether that’s macroeconomics, whether that’s legislation, whether that’s geopolitics, the complexity and the variability is significant.
We have the most aggressive product portfolio we’ve ever had. We’ve never had more launches. But we’re also going to need to play on product mix and ensure we watch segmentation, and have the right inventory, right models available as the market is shifting. The variability requires you to be flexible.
What about on the electric front?
“Canada needs to work together. Provinces should be working together, and have a common vision. Car companies are not building something that has a turnaround time of 24 hours. We’re building products years in advance.”
Vito Paladino
The future is electric, but the transition and speed will depend on how fast we want to get there. The majority of the industry and our portfolio still has a really strong ICE [internal combustion engine] portfolio. We’re launching our newest and latest ICE vehicles at the Canadian International AutoShow.
The whole goal ultimately is to decarbonize, but it’s also about what customers prefer to drive. We’re committed to decarbonizing. You have to find the right mix and the right pace. You get that right, then you’re kind of moving with the market, and you’re moving with the legislation.
How are potential tariffs affecting investment plans in Canada? For example, Volkswagen Group announced it would build its first North American EV battery cell gigafactory in St. Thomas, Ontario.
That project still continues. We’re on track to where we want it to be at this point. When you start talking about tariffs and what’s going on in North America, that’s a really big topic.
Canada has a lot to give to the modern auto industry. When you look at our precious metals, you look at our skilled population, you know, you look at even our resources with water. There’s a lot to give for Canada to be a part of the future of automotive, but you can’t do that in isolation.
What would you like to see from governments regarding regulations and policies? I know the federal government and provinces have recently scaled back consumer rebates for EVs.
“We’re pretty proud to say we’re Canada’s top premium brand in vehicle sales. The more diversified you are, which we are, the stronger you are.”
Vito Paladino
An industry and a company reacts best when there’s less complexity. Having multiple [Greenhouse Gas] targets or [Zero-emission Vehicle] sales mandates, or the provinces having different legislation creates complications. It’s actually harder to come to market because now you’re targeting every province potentially differently. That doesn’t help business, that doesn’t actually get you to electrification quicker.
Canada needs to work together. Provinces should be working together, and have a common vision. Car companies are not building something that has a turnaround time of 24 hours. We’re building products years in advance, and so when you’re having shifts that are so significant — some rebates going from $12,000 to zero, some legislation changing quickly from very aggressive to maybe the exact opposite — you’ve already built your product plan, your R&D plan, based on the signals in firm legislation two, three, or four years ago.
You need stability. Capital investment is always looking for stability. And certainly you want to have less complexity so you can get there in the most efficient way.
How will you deal with all the uncertainty — potential tariffs, EV rebates, political leadership changes — going forward this year?
Flexibility is key. You need to be flexible, because you need to be adaptive to the market, especially right now. The market is showing how quickly it can move. You also need to have a lot of contingency planning.
It’s no longer an environment where you have a plan, you lock in, and you just blindly execute. That’s long gone. If you can be flexible, have your alternatives, adapt, that’s what we’re doing. The one stakeholder we can never ignore is the customer, their preferences, and what they’re looking for from our brands.
Overall, the new luxury vehicle market in Canada was slightly down last year in terms of sales. Does that concern you?
The adjustment was very slight for us. What’s exciting is we have a full portfolio, so whether it’s more on the entry segments from the premium side, or obviously a lot of the performance or higher price segments, we have a full portfolio.
We’re pretty proud to say we’re Canada’s top premium brand in vehicle sales. The more diversified you are, which we are, the stronger you are.
This interview has been condensed and edited for length and clarity.
