Audi plots aggressive new model and tech-driven growth plan

In 2016, the Audi Group aims to increase its car sales, maintain its high level of profitability and continue investing large amounts in the future.

At the 127th Annual General Meeting held today in Ingolstadt, the Board of Management of Audi revealed the financial statements for 2015, current developments and the goals for this year. Rupert Stadler, chairman of the Board of Management of Audi AG, said: “We performed well in financial year 2015 despite all the challenges. This can be seen for example from the record number of 1.8 million Audi‑brand cars delivered and the operating profit at the high level of the previous year. Adjusted operating profit amounted to 5.1 billion euros; including special items, also relating to the diesel issue, it amounted to 4.8 billion euros”.

“We aim for further growth in 2016,” said Stadler. Between January to April, it has registered over 620,100 buyers – 4.9 percent more than in the prior‑year period.

“Our model and technology initiative will ensure our growth of tomorrow. Electrification and digitisation represent an historic shift. We will play a large part in shaping this change and will thus further enhance our strong position.” A large proportion of the planned investment will flow into these projects. In addition, Audi plans to strengthen its team this year, in Germany alone with 1,200 experts in strategic areas for the future.

This year, more than 20 new or upgraded Audi models will be launched, including the Q2. With this compact city‑SUV, the Ingolstadt‑based company plans to gain new, urban customers for the brand. It will have its own SIM card including an unlimited data plan, and will therefore have an Internet connection as standard equipment. Optionally, mobile devices will be able to go online via a Wi‑Fi hotspot. Furthermore, the SUV offers a wide range of connect services as well as numerous driver‑assistance systems from higher‑range models.

At the top end of the range, Audi is expanding its successful Q family with the sporty SQ7 TDI and the Q7 e-tron quattro, the carmaker’s second plug‑in hybrid. Its standard fuel consumption is less than two litres per 100 kilometers (better than 117 miles per US gallon). The Q7 e-tron can travel up to 56 kilometres in purely electric mode, meaning that most day‑to‑day journeys can be made without causing any local emissions at all.

In addition to its SUV fleet, the company is also expanding the new generation of the A4 family. Since mid‑March, customers have been able to order the Audi A4 allroad quattro, and orders will be taken for the S4 Sedan and Avant as of the middle of this year. Furthermore, the new A4 is gradually being launched in markets outside Europe. In the United States, it has been available since March. In China, it will be in the dealerships in the second half of the year.

Audi is expanding its worldwide production network in 2016 and will put its plant in Mexico into operation. The first Q5 cars will drive off the assembly lines in San José Chiapa in the second half of this year.

Furthermore, Audi is currently preparing for production of its first fully electric large‑series automobile. It will be launched in 2018 as a sporty SUV with a range of more than 500 kilometres and will be produced in Brussels. The plant there will also have its own battery production. “Starting in 2018, we will launch another electrified car each year,” announced Stadler.

Audi is working on the megatrend of digitization in all parts of the company. This ranges from the intelligent factory to the connected car and piloted driving and to the development of new areas of business.

An important role will be played here by the digital map service, HERE, which Audi acquired in 2015 together with BMW and Daimler. Highly precise maps linked with real‑time data will be the basis for example for many future digital services, and for piloted driving using swarm intelligence.

In 2017, Audi will present the new A8 – the brand’s first series‑produced car capable of piloted driving. With the traffic‑jam pilot, it will be able to drive itself temporarily on the autobahn at speeds up to 60 kilometers per hour (37 mph). In this way, Audi will cross the threshold from partial to highly automated driving. Stadler is convinced: “By 2025, we will see fully automated driving.”

Also read: Audi starts Q2 with sales of 164,350 units, up 7.5%