Month: March 2020

In times of the corona pandemic, the handing over of a donation also looks different. Today, Monday, March 30, 2020, Audi’s Board of Management Members Peter Kössler, responsible for Production and Logistics, and Wendelin Göbel, responsible for Human Resources, together with the “Doctor in Chief” at Audi Dr. Andreas Haller, Head of Audi’s Healthcare department, handed over a symbolic check to hospitals in the home regions of Ingolstadt and Neckarsulm – in virtual form of course. The Ingolstadt Hospital will receive 400,000 euros and the SLK Hospitals in Heilbronn will receive 200,000 euros. As a first step, Audi will also provide 10,000 medical masks for the Ingolstadt region and 5,000 masks for the Neckarsulm region in the next few days. In Ingolstadt, for example, they will be sent to a central coordinating body, the Disaster Control Management Group, which will then distribute the masks to hospitals, care homes, doctors in private practice and the public health system.

On the subject of the donation, Board of Management Member for Production Peter Kössler stated: “We receive enquiries from organizations in our home regions every day. It is a matter close to our heart to help in this difficult situation. As a first step, we have mainly sent medical equipment to hospitals and dialysis centers, and this donation is now a further step.” His colleague, Board of Management Member for Human Resources Wendelin Göbel, added: “With these donations, we want to send a signal of solidarity and social responsibility at our home sites in Ingolstadt and Neckarsulm, and to thank all of the doctors, nurses and other staff of the social institutions and hospitals for their untiring efforts in this exceptional situation.”

The specified fuel consumption and emission data have been determined according to the measurement procedures prescribed by law. Since 1st September 2017, certain new vehicles are already being type-approved according to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a more realistic test procedure for measuring fuel consumption and CO₂ emissions. Starting on September 1st 2018, the New European Driving Cycle (NEDC) will be replaced by the WLTP in stages. Owing to the more realistic test conditions, the fuel consumption and CO₂ emissions measured according to the WLTP will, in many cases, be higher than those measured according to the NEDC. Therefore, the usage of CO₂ emission values measured according to WLTP for vehicle taxation from 1st September 2018 on can cause changes in this regards as well. For further information on the differences between the WLTP and NEDC, please visit
www.audi.de/wltp.

We are currently still required by law to state the NEDC figures. In the case of new vehicles which have been type-approved according to the WLTP, the NEDC figures are derived from the WLTP data. It is possible to specify the WLTP figures voluntarily in addition until such time as this is required by law. In cases where the NEDC figures are specified as value ranges, these do not refer to a particular individual vehicle and do not constitute part of the sales offering. They are intended exclusively as a means of comparison between different vehicle types. Additional equipment and accessories (e.g. add-on parts, different tire formats, etc.) may change the relevant vehicle parameters, such as weight, rolling resistance and aerodynamics, and, in conjunction with weather and traffic conditions and individual driving style, may affect fuel consumption, electrical power consumption, CO₂ emissions and the performance figures for the vehicle.

Further information on official fuel consumption figures and the official specific CO₂ emissions of new passenger cars can be found in the “Guide on the fuel economy, CO₂ emissions and power consumption of new passenger car models”, which is available free of charge at all sales dealerships and from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Str. 1, D-73760 Ostfildern, Germany and at
www.dat.de.

“Werner Eichhorn is an accomplished sales expert with extensive experience in China. We are delighted that with his many years of expertise, he will continue the success of Audi China in the new decade,” says Dr. Arno Antlitz, Member of the Board of Management for Finance, China and Legal Affairs at AUDI AG.

As President of Audi China, Gaby-Luise Wüst focused responsibility for China at Audi more effectively and made relevant processes and structures in China and Ingolstadt more efficient. Under the premise of “qualitative growth,” she implemented a rapid model initiative in China together with Audi’s Chinese partner, FAW-VW. With the market launch of the Audi Q2 L e-tron, the first locally produced electric car, and the Audi e-tron, she helped to achieve an important milestone in the electrification of the Chinese model range. “We are very grateful to Gaby-Luise Wüst for her commitment. Her work has set an important course for our future in China,” Antlitz emphasizes.

Werner Eichhorn (57) has been at the Volkswagen Group since 1982 and has held various management positions in sales at Audi since 1993. From 2005 until 2008, he was Managing Director at the Audi division FAW-VW with responsibility for sales of the Audi brand in China. During that time, he achieved important milestones for Audi in China and already has extensive experience in Audi’s largest market worldwide. Before joining Volkswagen of America in 2017, he had been Member of the Board of Management for Sales and Marketing at Škoda.

Gaby-Luise Wüst (52) became Head of Sales China/Hong Kong at AUDI AG in Ingolstadt in April 2018. Since December 2018, she has additionally been responsible for Audi China Business Management and Joint Venture Projects. In 2019, she was also appointed President of Audi China and Executive Vice President Group Sales at Volkswagen Group China. In the next stage of her career, she will take over a new management position for the Volkswagen brand within the Group.

In view of the spread of the coronavirus and in order to minimize the risk of infection for employees, contractors and guests, the Audi Group is not holding an annual press conference this year. “We are in an exceptional situation for which there are no tried-and-tested solutions or simple recipes. We are focusing on protecting our employees, contractors and guests and making the right business decisions in this volatile environment,” says Audi CEO Bram Schot. The company is shutting down its plants in Ingolstadt, Neckarsulm, Belgium, Mexico and Hungary in a controlled manner by the end of this week. 

With regard to the 2019 financial year, Audi CEO Bram Schot says, “We can be satisfied; Audi is competitive. In a very challenging environment, we focused on our strengths and stabilized our business. Our operating return on sales was above 7 percent in each quarter of 2019 and was within our forecast corridor for the full year.” The company successively reduced its WLTP inventories from the previous year and successfully launched the next stage of its product initiative in the markets.

Deliveries by the core Audi brand gained considerable momentum, especially in the fourth quarter. In a declining overall market, the Four Rings ended the year with an increase in deliveries of 1.8 percent to 1,845,573 vehicles (2018: 1,812,485). Top-end models and SUVs, such as the all-electric Audi e-tron and the new Audi Q8, were very well received by customers.

Against this backdrop, the Audi Group’s revenue adjusted for the effects of deconsolidating the multi-brand importers in 2018 was above the prior-year level at €55,680 million (2018: €53,617 million*). Thanks to its strong product mix, the Audi core brand increased its revenue to €39,467 million (2018: €37,259 million).

Operating profit amounted to €4,509 million (2018: €3,529 million), whereby the previous year’s figure was reduced by €1,176 million due to special items related to the diesel issue. Operating return on sales was 8.1 percent (2018: 6.6 percent*). This was driven by the improved Audi product mix, the increased operating profit of Lamborghini and successfully implemented ATP measures totaling €2.5 billion. The program for improved earnings that was implemented in 2018 is expected to free up a total of €15 billion for future investments by 2022. Since the start of the program, the ATP has already generated an accumulated €4.4 billion and measures have already been identified for 80 percent of the overall target. The ATP is thus making a decisive contribution to improving the quality of earnings. 

The financial result amounted to €713 million (2018: €831 million). The prior-year figure was boosted by a one-off effect from the sale of an equity interest in the context of our business in China. At €5,223 million, profit before tax increased by 19.8 percent (2018: €4,361 million).

In recognition of their commitment in the year 2019, Audi employees will participate in the company’s earnings. For a skilled worker at the German plants, the Audi profit-sharing bonus for 2019 amounts to €3,880 (2018: €3,630). Profit-sharing arrangements also exist at Audi’s subsidiaries.

With a net cash flow of €3,160 million (2018: €2,080 million*), which is actually slightly above the forecast corridor stated in the 2018 Annual Report, the Audi Group once again confirms its high self-financing capability.

At the 2019 Annual General Meeting, the Board of Management had comprehensively presented Audi’s new strategic direction. At the heart of the “consistently Audi” strategy are the accelerated electrification course and the systematic reduction of CO₂ emissions. Audi plans to offer approximately 30 electric models by 2025. The proportion of so-called new energy vehicles in production is to rise from 3.5 percent today to about 40 percent in 2025. Audi is planning upfront expenditure of approximately €12 billion by 2024 solely for the electrification of its portfolio, and the Audi Group is not compromising on its profitability targets. Audi confirms its target of a premium return on sales of between 9 and 11 percent and a return on investment of more than 21 percent. The company plans to achieve both return targets in the medium term. Audi has already improved its return on investment: Capital efficiency rose to 12.7 percent (2018: 10.4 percent*) in 2019.

In order to achieve efficient and competitive cost structures, the Volkswagen Group is successively bringing together all vehicle-related software development activities in the newly created unit Car.Software Organization. This means that the tried-and-tested modular and platform system will now be transferred to the digital world. In the future, Audi will benefit from decisive competitive Group synergies and optimized software costs per vehicle. Furthermore, Audi anticipates economies of scale from the planned cooperation on autonomous driving between the Volkswagen Group and Ford Motor Company. In light of this and additional efficiency gains, the Audi Group is raising its strategic target corridors for the ratios of research and development expenditure and capex to between 5.0 and 6.0 percent in each case (previously 6.5 to 7.0 percent and 5.5 to 6.0 percent respectively).

“We are the only premium manufacturer in the competitive arena that can utilize synergies to this extent for the benefit of its customers through cooperation within the Group,” said Dr. Arno Antlitz, Member of the Audi Board of Management for Finance, China and Legal Affairs since March 1, 2020. “In order to achieve our ambitious goals, we must consistently utilize efficiency potential, further increase our cost and investment discipline, and create scope for future growth by continuing to invest in the electrification and digitalization of our vehicle fleet.” In the medium and long term, the “Audi.Future” agreement will also have a positive impact on the company’s competitiveness. In addition to securing jobs at the German sites until 2029, the agreement is expected to generate savings of about €6 billion over its term.

In 2020, Audi will again present around 20 models and systematically continue its electrification course. By the end of the year, the Audi core brand will launch five all-electric models on the markets and increase its PHEV offering to a total of 12 models. A PHEV variant will then be available in more than half of the model series. The Audi Group is thus preparing itself for intense competition and increasingly strict CO₂ regulation.

The global economic situation has changed very significantly in the context of the spread of the coronavirus, which is also having a massive impact on our supply chains, the production of our vehicles and their marketing. Dr. Arno Antlitz: “The effects of the spread of the coronavirus on the economy and our business are uncertain. This makes a reliable forecast for the year 2020 almost impossible at present. Our focus is on our employees and their families worldwide. Audi will do its part to minimize the impact on the people in our country and at our Audi sites worldwide. We will continue to take all necessary measures to achieve this. In addition, it is our task to protect the liquidity and thus the stability of our company and, despite all the restrictions, to stabilize our core processes, for example in technical development or other areas of the company.”

Overview of selected key figures for the Audi Group

Download Statements on the AUDI AG Annual Results 2019 and Outlook 2020

Download Audi Financial Report and Executive Summary: www.audi.com/annual-report

* Figures for 2018 excluding multi-brand sales companies. See pages 8 ff of the Financial Report for more information on the deconsolidation of the multi-brand sales companies. 

The turnover, at the end of 2019, reached € 716 million (2018: € 699 million) with growth of 2.4%, an operating profit of € 52 million (2018: € 49 million) and an operating margin of 7.2%, against 7% reached by the Borgo Panigale manufacturer last year.

Particularly significant is the turnover per bike figure, which with about € 13,500 / motorcycle represents the highest value in the history of the company, clearly indicating the evolutionary trend of the range of products offered towards the highest and premium part of the market, fully consistent with the founding values of the brand “Style, Sophistication, Performance. Trust”

The Panigale and Multistrada have been instrumental in achieving this result. The Panigale was the best-selling super sports bike in the world for the second consecutive year, with a market share of 25%, while with the addition of the 950 S and the renewed 1260 Enduro to the range, the Multistrada family recorded the highest value of motorcycles sold since entering the market in 2003.

Today Ducati Motor Holding has a total of 1,655 employees. The sales network of the Borgo Panigale motorcycle manufacturer includes 720 dealers and service points in over 90 countries.