Rupert Stadler
Chairman of the Board of Management of AUDI AG
Speech to the Annual Press Conference
Ingolstadt, March 1, 2012
Part 2
– Check against delivery –
Thank you, Mr. Strotbek.
Those are excellent figures for 2011. However, when we look ahead, it's certainly not
all sunshine and roses. The economic forecasts tell us that we'll soon be steering into a
headwind. For example, the World Bank has made a downward correction to its outlook
for this year. Global economic growth will probably be limited to 2.5 percent. For the
automobile industry, experts expect a 4 percent increase in car sales this year. We have
set a clear goal for ourselves: In 2012, Audi wants to achieve stronger growth than the
market as a whole.
Let's have a look at the January and February figures. During the first two months of
this year, Audi achieved worldwide deliveries of more than 200,000 automobiles. This
represents an increase of 8 percent. In January, Audi’s European sales felt the effects of
the model transition in the A4 family, but we already posted strong gains again in
February.
For the entire year, we intend to increase our sales in all regions around the world.
China has become firmly established as a key pillar alongside the major markets of the
USA and Europe. Russia, India and the South American countries are also becoming
increasingly important. We are using this trend in our continued efforts to position our
brand at the global level.
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Europe is – and will remain – Audi’s solid foundation. For the current year, we expect
slightly stronger sales than in 2011. And although the developments in some national
markets will be extremely tough, Audi will see especially strong performance.
In the Chinese market, by contrast, we are aiming to achieve double-digit growth again
for 2012. This will bring Audi a major step closer to its declared objective of delivering
its two-millionth car in that country by the end of 2013. To accomplish that goal, we’re
planning to nearly double our dealer network in China by the end of 2013, for example.
For sustainable success, you need to have an understanding of the market, and must
also develop and produce your products there.
This applies to two models: As the first step, we’ll be introducing the Audi Q3 into the
Chinese market as an import vehicle. The second step will be to start local production
of this model. Second, for the long version of the Audi A6, which we have been
producing locally for quite some time, we can state today: Before this year ends, Audi
will be launching the new generation onto the market. A few additional details about
this model: With its spacious back seat, the long version of the Audi A6 is especially
tailored to the needs of our Chinese customers. On board is an MMI with a touchpad
that recognizes Chinese characters – specially developed at our Infotainment Tech
Center in Peking.
The long version of the Audi A6 is manufactured at the Changchun plant in the North of
China. Local production is set to undergo further expansion: About 3,000 kilometers to
the south of Changchun, in Foshan, Audi is now building a second plant in cooperation
with our joint-venture partner, FAW. A member of the A3 family will start rolling off
the assembly line there at the end of 2013. With Changchun and Foshan, we will have
manufacturing capacity in China for up to 700,000 vehicles a year as of 2015. We are
ideally positioned to continue building upon our market leadership in the premium
segment.
In the USA, Audi is also set to achieve double-digit growth again in 2012. After all, the
Audi brand is now recognized as a force in the premium segment in that country as
well. We proved that at this year's Super Bowl, where Audi produced highlights – in
every sense of the word.
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It's just amazing what you can do with LED headlights. To be completely honest, it's no
coincidence that, of all vehicles, the vampire is driving an Audi S7 Sportback. In 2011,
one in four Audi cars sold in the USA was a high-end luxury model. In the US market, we
have also made the diesel respectable as an efficient drive technology. In just three
years, the share of diesel vehicles in A3 and Q7 sales has increased from 0 to 50
percent. By 2015, we plan to double our sales of diesel engines in the USA. To that end,
we will be launching the A8 TDI and A6 TDI there in 2013. In 2014, the Q5 Diesel will
make its premiere on the US market.
The outlook is good. And the same goes for the USA as for China: If we want to
continue growing there in the long term – and I'm talking about a strategic goal of
more than 200,000 units in 2020 – then we must gain a foothold in North America
with a local manufacturing plant. Because: A local plant will ensure that we be able to
expand our capacity as necessary as we grow in this market. It will also provide us the
flexibility we need to supply the North American market with new products, and
reduces our exposure to exchange rate movements. In my view, this leads to one clear
conclusion. We want to make a decision before the summer break regarding the when
and where – and with which product – we’ll be setting up production in North America.
Now to the Geneva Motor Show. Next week, Audi will be in Geneva to present a key
model in its product portfolio: The world premiere of the new Audi A3. It’s the official
kick off for a whole new model family. The next generation of our flagship model in the
compact car segment will hit the market by midyear: It’s just one of a total of 18
market launches that Audi’s planning for 2012, but is certainly the most significant.
However, we won’t be revealing any further details before the Geneva Motor Show.
The A1 Sportback is already on the road, as is the product update of the A4 family. And
we are still forging ahead with our product offensive: starting with sport versions like
the RS 4 Avant and the luxury models from the S family to our hybrid fleet: It
represents the start of electric mobility – the mobility of the future.
In order to understand future mobility needs, we have created a network of experts:
the Audi Urban Future Initiative. Architects and futurologists discuss possible forms of
mobility in the city of the future. It's not only about roads, traffic lights and cars.
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Anyone who studies urban mobility also has to understand the structure and identity of
a society. Megacities underscore the growth in the world’s population. They urgently
need solutions for future mobility. In this project, we encourage people to: Think
globally, act locally! Because no two megacities are alike.
For the second time, the Audi Urban Future Initiative is announcing an award. Six highprofile international architectural firms around the world will address the situation in
their respective urban regions. They’ll each present their vision of how infrastructure
can become an engine for urban development: for example in Mumbai, the world's
fastest-growing urban regions; in the Pearl River Delta in China, which will soon be
home to 80 million inhabitants; or in Istanbul, the melting pot between Europe and
Asia. Istanbul will also be the setting for the ceremony where the winning team will
accept the 2012 award. The winning entry will be used to create a city dossier. Thanks
to a detailed inventory of demographics, infrastructure and resources, this dossier will
serve as the impetus for practical projects and for implementing the concept through
construction work.
Ladies and Gentlemen,
Audi has set itself the long-term goal of achieving carbon-neutral mobility – in order to
do so, we must look at the entire product cycle: from the development and
manufacturing of the vehicle and the utilization phase to recycling. Here, too, we want
to demonstrate our Vorsprung durch Technik, and create balance in mobility. This
means balance with people and the environment.
It is this attitude that sets us apart. For example in logistics: Audi was the first car
manufacturer to decide to use trains powered with green energy when transporting our
products by rail. Or for example in our plants, where we consistently use regenerative
energy sources as part of a clear vision: carbon-neutral automobile production. It can
also be seen in the development of new fuels. With the construction of a methanation
facility, our Audi e-gas project is now entering its next phase. As you are aware, we are
working to use synthetic gas to store surplus electric energy. In 2013, we will start
selling the A3 TCNG, our first model powered by e-gas: ushering in the long-distance
mobility of the future.
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This automobile is symbolic of our strategic approach: Ahead of the competition in the
sprint – but also winning the marathon. Responsibility: For us it is defined in terms of
economic, ecological and social progress. We also demonstrate responsibility toward
the trainees and apprentices at Audi. In consultation with the Works Council, Audi
decided that in the future, we will offer full-time positions to all young talents who
successfully complete their training with the company. This creates perspectives for
young people. And it also covers our need for skilled employees in the coming years. In
2012, we will also be hiring an additional 1,200 experts – just at our German locations
– once again in particular in the future-oriented fields of lightweight design and electric
mobility.
These are key areas where we are making substantial investments. From now until
2016, we will be investing more than 10.5 billion euros in the development of new
models and future-oriented technologies. Total investments by Audi during this period
will amount to 13 billion euros – the biggest investment program in our company's
history. This will also benefit our company locations: Over the next five years, nearly 8
billion euros will go to Ingolstadt and Neckarsulm alone: During the first half of this
year, car body production for the new A3 will begin at the plant here. In addition, our
Forum for Simultaneous Engineering will be completed in the middle of this year: In
the future, this eight-storey building in Ingolstadt will house some 450 technical
development employees.
Audi believes that five key innovation areas will determine the shape of future mobility.
Design is and will remain the number-one motivating factor for car buyers. As a result,
we have ensured that our models speak a clear design language. This applies equally to
the interior and the exterior. Just think of our LED headlights and the single-frame
grille. Now we need to go one step further and make the defining features of our cars
even more distinctive.
Lightweight construction has also been an Audi core competency for decades. To
continue moving ahead in this area, we have pooled our skills under the "Audi ultra"
concept. An ultra-light car is more agile and maneuverable. And above all: it uses less
fuel. We’re not just focusing here on one material, but rather on an intelligent
combination: the right material at each location. And we will use designs that
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intelligently integrate the necessary functions or systems. In this way, we aim to make
every model lighter than the preceding generation. We want the lightest vehicle in
every segment to have four rings on the grille.
The third element: Audi connect. During the past decade, one of our top priorities was
networking within the vehicle. In this decade, it is seamlessly linked to its environment:
with other cars, with the infrastructure, and of course with the internet. We are thus
turning the car into a modern status symbol – an interface between drivers and their
surroundings. Today we already bring news and information into the vehicle via UMTS,
offer navigation with Google Earth images, and deliver pinpointed traffic-flow data
with Audi online traffic reporting. With the next step, as a driver you will be able to
control the head-up display with just a wave of your hand or, in the passenger seat, surf
the web at ultra-high speed with the new LTE standard. And developments continue.
Soon we'll be talking about such concepts as swarm intelligence and piloted driving.
This is the very direction that another idea, which we presented to you yesterday
evening, is headed. Imagine you are driving in a big city – perhaps on your way to an
important interview. You’ll need to find a parking spot quickly, ideally in a central
location. Wouldn't it be perfect if your Audi had already reserved that parking space for
you in advance? When you arrived at your destination, you could drop your car off in
front of the parking garage and get to your appointment on time. In the meantime,
your car would proceed to park itself.
Audi mobility is the name we’ve given to describe the services related to all aspects of
individual mobility: Whether it’s a “flatrate” service that allows our customers to have
flexible access to a pool of car models from the Audi portfolio when necessary; or if it’s
a smartphone app that simplifies intermodal travel by intelligently networking all
travel options and modes of transport.
The fifth strategic area: Audi e-tron. We don’t want electric mobility to mean that our
customers have to sacrifice the characteristics that define the Audi experience: such as
quality, sportiness and efficiency. Rather, we see it as an elementary requirement to
increase the range of electric vehicles: through light-weight construction; energy and
heat management; and improved batteries. Audi e-tron also addresses the infra-
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structure surrounding the car: Electric cars are recharged wherever drivers park them:
in the garage at home, on the company parking lot, in public parking garages. Naturally
this will be done by cable at charging stations. However, we are also working on
wireless charging, which is technology that allows non-contact charging via induction.
Our A1 e-tron has been out on the roads since September 2011. In a pilot project with a
vehicle fleet in the greater Munich area, test customers are using it under everyday
conditions. We will utilize the results in the "Showcasing Electromobility" projects
funded by the German federal government. Under our e-tron master plan, Audi intends
to follow the launch of our hybrid models this year with the launch of our first electric
vehicle: the R8 e-tron.
While we are planning small-scale series production for this car, which is a vital
element in our innovation and technology plans, the electric driving experience will
become a reality for a growing clientele with our plug-in hybrids. Our pioneering vehicle
in this field is the Audi A3, with the market launch of a plug-in version slated for 2014.
This will be followed by the next-generation Audi A4 and Audi Q7 plug-in cars – starting
in 2014 and in successive years. In 2020, we want to have an e-tron available in every
segment and to achieve total sales in the six-figure range.
Ladies and Gentlemen,
As you can see: the next several years are going to be exciting ones for our industry. But
I am absolutely certain that we at Audi will rise to the tasks that lie ahead. Because
there is one thing that never fails to surprise me: the unbelievable commitment, the
enthusiasm and the passion of the Audi employees that makes our brand something
special: a real jewel. Polishing this precious stone to perfection – that is our task. After
all, we want the Audi brand to keep making our customers' eyes light up in the years to
come. It’s only this way that you become the number-1 premium car brand.
Thank you!
– End –
Contact:
Communication Corporate – Jürgen De Graeve – Tel. +49 841 89-34084
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