Audi is Performing Well

An Audi is sold somewhere in the world every 22 seconds. Sales are particularly strong in China and North America. At a press conference held in Ingolstadt, Germany on March 12, 2013, Audi AG discussed its current positive performance and future outlook.

This year's Audi press conference was held at the company's headquarters in Ingolstadt, about a 45-minute drive from Munich. On the stage set up in a large hall, executives, including Chairman of the Board Rupert Stadler, were lined up.



Audi's sales in 2012 reached 1.45 million units. Despite an uncertain economic climate, this represents an increase of 150,000 units compared to the previous year, indicating Audi's strong performance. The previously set sales target of 1.5 million units by 2015 may be achieved as early as 2013, and Chairman Stadler's statement that "2 million units is the next goal" is beginning to sound realistic.

Audi invites journalists from around the world to its annual general meeting. Here, future activities of Audi are presented through lively question-and-answer sessions, making it a valuable event.

The A7 Controlled by Smartphone

Breakdown of Strong Performance

In Japan, they are introducing hybrid versions of their high-end models, andthe new "A3" scheduled for release in 2013are among the energetic activities drawing attention for Audi. Sales in 2012 also showed strong performance, with a 14 percent increase year-on-year.

"Last year (2012), we delivered over 1.45 million Audi brand vehicles. This is about 152,000 more units than in 2011. Today, our sales volume is double what it was ten years ago. Although the economic situation in Europe is not favorable, the conditions in our key markets remain on an upward trend,"

Chairman Stadler stated proudly. He also reported that Audi's 2012 revenue (January-December) was 48.8 billion euros (approximately 6.1 trillion yen), an increase of 110.6 percent compared to the previous year. Furthermore, it was indicated that an operating profit of 5.4 billion euros, a record high, might be possible in 2013. The sales target of 1.5 million units by 2015 may also be achieved ahead of schedule.



In North America, sales in 2012 reached approximately 140,000 units. Chairman Stadler also noted that one in five of these were high-profit models such as the "A6," "A7," "A8," and "Q7." Sales in Russia, although at 33,000 units, showed a remarkable year-on-year increase of 144 percent, drawing significant attention.



In contrast, Spain, which is experiencing an economic crisis, saw an exceptional and severe decline in sales of 11.7 percent. "Dealers are barely making a profit. We must take measures to protect our dealers going forward," said Luca de Meo, board member for sales and marketing.

Italian Inspiration

This year, Audi has many product-related news items. One is the consolidation of Lamborghini, Ducati, and Italdesign under its umbrella. It is interesting that all of these are Italian companies.

"We can draw various inspirations from collaborations with Italian companies. This is a benefit for Audi,"

saidWolfgang Egger, Head of Audi Design.

"Good design means having a vision. Groundbreaking creations emerge from the ability to clearly envision the future. While Italian strengths are often cited as craftsmanship, by adding digital technology to this, we can achieve a unique power,"

CNG Ready

Another isEnvironmental Technologies. The hybrid "e-tron" is already on the roads, and this time, a concept model called "g-tron," which uses a hybrid fuel of CNG and gasoline, was unveiled.

The advantage is that emissions are clean when running in gas mode. Furthermore, in Germany, gas pipelines are already in place, and CNG stations are available in urban areas, making infrastructure readily available.Unveiled at the Geneva Motor ShowIt has also garnered significant attention from European media.

Increased Production and Quality

"Over the next three years, we will implement our largest investment plan ever, amounting to 11 billion euros. Approximately half of this, 5.5 billion euros, will be allocated to enhancing production efficiency at our German plants. With an Audi car sold every 22 seconds today, our production facilities must keep pace with sales,"

Chairman Stadler stated, and also mentioned plans for increased production overseas.

"We currently have plants in Győr, Hungary, and Foshan, China, and production volumes are gradually increasing. These two plants will enable us to increase production by 300,000 units in 2013. Furthermore, we have decided to build a new plant in San José Chiapa, Mexico. Once this plant is operational, it will facilitate smoother sales in the United States and allow for exports to the US and Europe without tariffs,"



Chairman Stadler continued, emphasizing that employee training is also crucial for a premium brand like Audi, alongside increased production.

"In 2013, we will open the world's largest training center in Beijing. As the number of dealerships increases, it is essential for them to acquire the service (author's note: repair, etc.) skills befitting Audi. What we emphasize is that 'quantity can only be ensured by quality.'"

As mentioned earlier in this column, Audi is not only focused on mass production of existing models. They are also diligently developing technologies for environmental compatibility, such as hybrid and CNG fuel vehicles, as well as safety technologies (the autonomous A7 is part of this).