Disappointment in Canada: EKS Audi Sport only fourth

During the season’s first overseas race both Mattias Ekström and his teammate, Andreas Bakkerud, shone with strong starts and fast times. On the extremely fast circuit, Ekström in the 580-hp Audi S1 EKS RX quattro featuring improvements to the suspension and the engine occupied second place overall at the end of day one. After a racing incident between Ekström’s Audi and Sébastien Loeb’s Peugeot, the Swede was unable to finish Q3. With an impressive second place in the semi-finals, Ekström clinched his ticket for the final, but missed the podium there by just 1.2 seconds.

From third on the grid, Andreas Bakkerud showed a rocket start in the second semi-final and advanced to the front of the field. “Unfortunately, Sébastien Loeb touched the rear of my car which resulted in damage to a suspension component,” the Norwegian reported. Even so, he did not give up and in his Audi impressively fought his way across the finish line in fourth position but barely missed making it into the final.

“We had a really good base,” said team owner and driver Mattias Ekström summing up the event. “For instance, we strongly improved our starts since the beginning of the season. Obviously, we’re disappointed about not being able to take home any trophies from the first overseas race of the season, but the gaps here were very small and the competition worked hard as well so that a few small mistakes had major consequences. We need to continue to prepare at full throttle in order to strike back in the next race at Lohéac.”

In four weeks’ time, the World RX will return to Europe: round eight of the season will be held at Lohéac (France) on the first weekend in September.

Audi achieves solid financials in first half of the year and anticipates growing challenges

“We successfully mastered the first half of this exceptional year and kept Audi right on track,” said Alexander Seitz, Member of the Board of Management of AUDI AG for Finance, IT and Integrity. “The response to our new models and technologies shows that they will significantly move Audi forward again. To those ends, we are mastering the current phase of upheaval and transition. Because with the climax of the renewal of our model range and the enormously demanding changeover to the WLTP standard, challenges will increase again in the coming months.”

In the current third quarter, the new generation of the Audi A6 – the Four Rings’ bestselling full-size model – will be launched in the first markets. In addition, the Q8 will extend Audi’s model range in the premium top segment. The fourth quarter of 2018 will feature the market launch of the series version of the fully electric Audi e-tron prototype, as well as the management of production ramp-ups and phase-outs in the compact segment. With the new Audi A1 and the new Q3, the company will also achieve important milestones in the realignment of its production network in order to further optimize synergies within the Group. In parallel, Audi is continuing the worldwide market rollout of the new A8 and A7 models; the brand will start its prestige initiative also in the US market in the fourth quarter.

From January through June, the company delivered 949,282 automobiles of the Audi brand to its customers (2017: 908,683). The worldwide increase in deliveries of 4.5 percent was primarily driven by the positive development in Asia and North America. The Audi Group’s revenue increased by 3.9 percent to €31,183 million in the first half of the year (2017: €30,011 million). With an increase in operating profit of 3.0 percent to €2,761 million (2017: €2,680 million), the operating return on sales was 8.9 percent, as in the first half of last year. Operating profit does not include the results of the joint-venture business in China, where Audi achieved its strongest growth in deliveries to customers in the first half of the year. Assigned profits from the Chinese joint-venture business are presented under financial result.

The significantly increased net cash flow of the Audi Group amounted to €2,672 million in the first six months of this year (2017: €1,925 million). The net cash flow in the prior-year period was impacted by higher cash outflows in connection with the diesel crisis.

The robust financial health of AUDI AG is increasingly supported by the systematic implementation of the Group-wide transformation plan that was initiated at the beginning of the year. By the year 2022, this program of measures should achieve positive earnings effects totaling €10 billion and prioritize resources for key innovation areas of the focused strategy “Audi.Vorsprung.2025.” By the middle of this year, the company has already implemented the first measures in the context of the Audi transformation plan with a positive impact on operating profit of more than €0.5 billion in the full year, and will continue with thorough application of the program.

With stricter spending discipline, the ratio of research and development expenditure to revenue was 6.5 percent in the first half of the year (2017: 6.9 percent) and the capital expenditure ratio was 3.4 percent (2017: 3.9 percent). The 2018 main investment focus will be in the second half of the year.

The Audi Group confirms its forecast for the full year. During the further course of the year, the company will continuously analyze and evaluate the ongoing development of risks, in particular those arising from the adjustment of the model portfolio to the new WLTP measuring method. As announced in the annual report, the company expects significant fluctuations during the year in production, inventories and deliveries, as well as in its key financials. In this context, the first half of the year featured a significant increase in production levels for anticipatory stockpiling: In the coming months, an optimized supply of the distribution and retail network will be necessary due to the Audi model initiative and above all the changeover to the WLTP test cycle. This is meant to enable dealerships to bridge interruptions in the freely configurable range of certain models that occur as a result of the WLTP changeover, partially with cars available directly on site.

For the year as a whole, deliveries by the Audi brand are expected to reach the previous year’s level, with a slight increase in revenue for the Audi Group. The Audi Group continues to anticipate an operating return on sales within its strategic target corridor. The company expects the research and development expenditure ratio to be slightly above the long-term target corridor of 6.0 to 6.5 percent. Audi also assumes that the capital expenditure ratio will be slightly above its target level of 5.0 to 5.5 percent.

Selected key figures of the Audi Group

H1 2018

H1 2017

Deliveries  Audi brand

949,282

908,683

Revenue  in EUR million

31,183

30,011

Operating profit  in EUR million

2,761

2,680

Operating return on sales in percent

8.9

8.9

Download Interim Financial Report: www.audi.com/interim-financial-report2018

Audi and Ericsson to pioneer 5G for automotive manufacturing

Frank Loydl, Chief Information Officer at AUDI AG, says: “The fully networked factory will have a significant impact on the production of the future. A powerful network architecture that can respond in real time is of decisive importance for us. As part of the project with our partner Ericsson, we are testing the opportunities offered by 5G technology for industrial applications in the smart factory.” In addition to the Ingolstadt plant, Audi and Ericsson are exploring whether 5G can be used in other Audi Group factories.

Erik Ekudden, Group CTO at Ericsson, says: “Ericsson is already running 5G industry programs all over the world to help manufacturers boost productivity and create new business opportunities. This project is a great opportunity to see what is possible when we bring 5G into an automobile production environment to truly enable smart wireless manufacturing.”

5G is the next-generation of mobile communications, which will extend the performance of today’s mobile networks to serve the future needs of consumers and industries. 5G networks will deliver a better and faster broadband experience for consumers, while for businesses 5G will be an enabler to open up new applications for everything from connected vehicles to the smart factories of tomorrow.

The technology has many network characteristics that are essential for Industry 4.0 with increasingly flexible and complex production processes. It allows for faster data throughput rates and more network capacities, as well as promising highly secure availability. Moreover, ultra-low latency ensures fast response times between equipment in the factory system.

In the first phase of the project, Audi and Ericsson will test a latency-critical application using wirelessly connected production robots that are equipped with a gluing application – a commonly used technique in auto body construction.

The planned infrastructure at the technical center in Gaimersheim will include the implementation of 5G technologies in a simulated production environment that mirrors those of Audi’s plant in Ingolstadt and other locations. The laboratory will be equipped with Ericsson’s Proof-of-Concept (PoC) network which is an open trial facility to enable early deployments of 5G technology. The network is designed to integrate alternative or complementary technologies to the ones currently in use, including WiFi or wireless LAN, or wired (Ethernet) connectivity of production components. 

Audi FC Ingolstadt Beijing Soccer Camp 2018 Begins and Helps Develop Youth Soccer in China

The Audi FC Ingolstadt Soccer Camp Series 2018 began in China in July in Foshan, Shanghai, and Changzhou; Beijing is the final station. The camp aims to cultivate children’s interest in soccer, as well as their persistence, perseverance and team spirit. It is an example of Audi China’s efforts to fulfill its social responsibility.

Audi China President Mr. Joachim Wedler said, “Since entering China 30 years ago, Audi has been deeply involved in the Chinese market. Not only does it lead the premium car market with advanced products, it also takes on increasing social responsibilities. Over the recent three years, more than 400 children have participated in the Audi FC Ingolstadt Beijing Soccer Camp. Audi is actively committed to cultivating China’s young soccer talents.”

Dr. Michael Wilkes, Head of Corporate Communications at Audi China, said, “Paying attention to the cultivation of China’s next generation of sports talents and supporting the development of youth soccer is an important part of Audi’s corporate social responsibility. We are proud to contribute to Chinas’ development of youth soccer.”

Participants in the Audi FC Ingolstadt Beijing Soccer Camp 2018 include the interested children of Audi China and Volkswagen Group China employees, plus 100 young soccer talents from various schools. For the first time, the coaches from Ingolstadt will identify an #AudiFCITopTalent from among the participants, and the award winner will be eligible to participate in a special training program in Germany.

Harald Gärtner, Sport and Communications Director of FC Ingolstadt 04 said, “In 2016, we established our presence on the international stage with a focus on long-term involvement. Our target is to increase our competitiveness on the field of play. We are continuing to extend that with this series of soccer camps in China in 2018, which perfectly reflect our long-term development plan. The Schanzer’s internationalization strategy is well thought out, and the club will pursue it, independent of sporting developments. With the search for the #AudiFCITopTalent, we want to give Chinese talents the opportunity to gain valuable experience in a professional German soccer club.”

The Audi FC Ingolstadt soccer training camp aims to attract young people to participate in soccer through a variety of activities. It also expands the training methods for soccer talents and lays a solid foundation for discovering and cultivating more future talents for the sport. In the years ahead, Audi China will continue to deepen its efforts to support the development of young Chinese soccer talents and increase the popularity of the sport among China’s youth.

Audi at Formula Student Germany: at race speed towards the future

Since 2007, Audi has been supporting young people with a talent for motorsport with their participation in Formula Student. Between August 6 and 12 this year, the design competition will once again take place at the Hockenheimring: “Innovations happen here. Anyone who shows pioneering spirit and commitment to the team at Formula Student will have all the qualities that we value also at Audi,” stated Antje Maas, Head of International Personnel Marketing. “This is why we are continuing our involvement – with a new focus this year.”

The four racing cars that were designed with the help of the Four Rings will this time compete in “Formula Electric” and “Formula Driverless.” Together with the TUfast Team from Munich, the Schanzer Racing Team from Ingolstadt and the University Racing Team from Eindhoven, Audi is thus deliberately focusing on the most important technologies of the future.

Within the context of the “Audi.Vorsprung.2025” strategy, the company has set itself the goal of becoming the leading premium supplier in the field of electric mobility. Audi intends to launch more than 20 electrified models in close succession by 2025. And the car manufacturer plans to produce the first autonomous electric car based on the show car Audi Aicon by the year 2021. Top experts from 25 nations are already working on the development of technology for autonomous driving at the Munich-based subsidiary, Autonomous Intelligent Driving GmbH. In the medium term, the Audi subsidiary plans to bring up to 600 experts on board.

“We are currently experiencing great dynamism. Young engineers and IT experts therefore have the best opportunities to think ahead and to shape change also at Audi,” added Antje Maas.

At Hockenheim, FSG participants and visitors will be able to learn more about the innovative jobs on offer at Audi in a personal dialog. Personnel marketing advisors will be available to talk to at an exhibition stand in the FSG Forum. In addition, interested parties will be able to meet professionals who are developing autonomous driving at Audi. Furthermore, experts from the company will once again be in the pit lanes and on the track as jurors, to support the student teams with advice and plenty of experience.