Investor Relations Corporate strategy

Audi: the number one premium brand

The debate on climate change, the future availability of fossil fuels and social megatrends such as increasing urbanization are presenting new issues of interest to customers. In the light of these changes, the Audi Group placed its core brand Audi on a more future-proof footing in the 2010 fiscal year through Strategy 2020. With its vision of “Audi: the number one premium brand,” it has set itself the goal of taking on the lead role in the premium segment worldwide. The goals of Strategy 2020 focus on lasting corporate success, underpinned by sustainable actions. The Audi Group therefore regards it as a self-evident aspect of corporate responsibility that it takes account of the issues of ecology and social responsibility when defining the strategic direction of its core business.

Mission: “To delight customers worldwide”

The mission statement “We delight customers worldwide” is at the very core of the Company’s drive to become the number one in the premium segment. This means in practice that the Audi brand offers its customers emotional, technologically advanced products that are particularly noted for their sophistication and reliability. The brand with the four rings furthermore intends to delight its customers with the best brand experience available – hard evidence of the Audi brand values “sophisticated,” “progressive” and “sporty” is provided at every point of contact with the customer.

A highlight of 2010 for the Audi brand was the innovative market launch of the Audi A1. As well as making intensive use of the Internet and social media channels, it set up the “A1 City” world of discovery at Munich Airport. Between June and October 2010 the public was given the opportunity for an in-depth encounter with the new model. With the aid of the new showroom configurator, those interested were quickly able to configure their personalized A1 on large-dimension flat screens, giving them lifelike, three-dimensional impressions of their chosen version. Product and investment decisions likewise focus on delivering customer benefit. Their successful implementation hinges on the employees, who demonstrate immense expertise, agility and passion for the products of the Audi brand.

Superior financial strength

In keeping with a value-oriented corporate management approach, growth only meets the premium standards of the Audi Group if it is simultaneously profitable. It therefore remains a key focus of Strategy 2020 that qualitative growth is a priority strategic corporate goal. Long-term superior financial strength can be achieved above all through effective and efficient structures and processes, the ongoing optimization of costs and systematic investment management. A high level of self-financing furthermore helps to preserve the Audi Group’s ability to invest and act. The aim therefore remains to cover investment from self-generated cash flow.

Continuous growth

The basis for continuous growth is the Audi brand’s attractive product range, to which numerous new models were again added in the 2010 fiscal year as part of the long-term model initiative. The new Audi A8 as well as the Audi A1 and A7 Sportback models are delighting customers with their emotional design, sportiness, efficiency and everyday suitability. The market launch of the ultra-sporty models S5 Sportback, RS 5 Coupé and R8 Spyder as well as improved versions of the Audi A3 and Audi TT car lines were also part of the stunning new product portfolio. The model range of the Audi brand will continue to grow – it is set to reach 42 models by 2015.

The Company intends to achieve a delivery volume of 1.5 million vehicles of the Audi brand by 2015. The Audi Group will continue to place the focus on quality alongside continuity of growth. In order to realize its growth plans, the Company is furthermore stepping up its activities in international auto markets. The Audi Group is thus steadily expanding its production network and increasing the number of dealer and service outlets in important sales markets.

Image leader

A strong brand is the basis for lasting success. The Audi Group is therefore eager to keep steadily improving its image position above all through the Audi brand’s attractive product range, and to establish an emotional bond between its customers and the brand. The public’s enthusiasm for the Audi brand and its products was again reflected in numerous national and international awards in the 2010 fiscal year.

Most attractive employer

Steadily improving its appeal as an employer is of particular strategic importance to the Audi Group, because the Company is reliant both now and in the future on having well-qualified, dedicated employees if it is to realize its strategic goal of becoming the number one premium brand.

As well as being able to offer them challenging tasks, the Audi Group provides its personnel with attractive working conditions, commensurate pay and high job security. Regular internal surveys of the workforce confirm a high level of employee satisfaction. Numerous external surveys have additionally confirmed the high appeal of the Audi Group as an employer.