Audi's sales have never been this high (again)


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March 11, 2008 :: Audi's sales has never been this high

( This is Audi's 12th consecutive year with increases )

Audi: Most successful fiscal year of all time

? New record figures for vehicle sales, revenue and profit: 964,151 vehicles sold, revenue of ? 33,617 million, profit before tax of ? 2,915 million

? Audi Chairman Rupert Stadler: ?Highest profit from operating activities in our company?s history to date?

? Board Member for Finance Axe l Strotbek: ?Audi is one of the most profitable companies in the international automotive industry?

? Profit-sharing: Average of almost ?5,300 per employee

Ingolstadt ? In the 2007 fiscal year, AUDI AG once again achieved record figures for production, vehicle sales, revenue and profit. ?We?re looking back on the most successful fiscal year in the history of our company: We have achieved the twelfth consecutive record year for vehicle sales and we were able to increase all of the key financial figures to new record levels ? we call that qualitative growth, since only profitable growth can secure our competitiveness in the long term,? said Rupert Stadler, Chairman of the Board of Management of AUDI AG, at today?s Annual Press Conference in Ingolstadt.

With a rise of 5.7 percent in vehicle sales, the Audi Group?s sales revenue for the 2007 fiscal year attained a new record high of ?33,617 million (?31,142)* ? an increase of 7.9 percent. With an operating result of ?2,705 million (?2,015), the company has registered significant growth of 34.2 percent. ?This marks the highest profit from operating activities in the history of the company while also providing convincing evidence of the healthy and sustained growth of the Audi Group,? emphasized Axel Strotbek, Member of the Board of Management for Finance and Organization of AUDI AG.

This success is particularly attributable to further improvements in the model mix through the sale of highly exclusive cars such as the Audi Q7, models from the TT family, the Audi A5 and the Audi R8 supersportscar. ?This is reflected especially in the below-average rise in production costs in relation to the sales revenue ? this is what we consider qualitative growth,? Strotbek said.

At ?2,915 million (?1,946), the company once again recorded a new best figure for profit before tax. This represents a rise of 49.8 percent. Profit after tax was at ?1,692 million (?1,343), up 26 percent. The Audi Group achieved significant growth of 4.4 percentage points in the return on investment, to 18.6 (14.2) percent. The disproportionately sharp rise in earnings compared with revenue is also shown by the increase in the rate of return from 6.2 to 8.7 percent. ?This means that Audi is one of the most profitable companies in the international automotive industry today,? was Strotbek?s evaluation of this development.

Twelfth successive record year for vehicle sales

Audi sold 964,151 (905,188) cars in the past year, an increase of over 6.5 percent compared with the previous year. The brand with the four rings chalked up record results in more than 50 markets.

In an otherwise declining overall market, Audi sold 254,014 cars in Germany (257,792, down 1.5 percent). With a record market share of 7.9 percent, the company achieved its best level in the national competitive environment in its history as a premium manufacturer.

AUDI AG further developed its position as a premium brand in growth markets as well as in mature markets: The company sold a record number of cars in Western Europe, at 650,407 (631,380, up 3 percent). The United Kingdom achieved the highest growth, with 100,712 cars sold (up 17.1 percent). In Eastern Europe, vehicle sales increased by one-third to 36,073 (27,083) units.

The biggest single foreign market in 2007 was China (including Hong Kong), with 101,996 cars sold (81,708, up 24.8 percent). In China, Audi remains the market leader by some distance in the premium segment. In J.D. Power?s customer satisfaction survey, the carmaker once again took first place in this growth market. Audi sold 93,506 cars in the USA (90,116, up 3.8 percent).

The subsidiary Lamborghini recorded 15 percent growth, selling 2,406 of its supersportscars during 2007.

Record levels of car and engine production

The Audi Group produced 980,880 cars (including Lamborghini), thereby once again achieving a production record (up 5.9 percent, 926,180). Another all-time high: 82 percent of total production came from Audi?s Ingolstadt and Neckarsulm locations. Engine production by the Audi Group climbed 1.1 percent to 1,915,633 units.

Growth secures employment and creates new jobs

Audi invests ?2 billion per year in new products alone. The carmaker will expand its product portfolio over the next eight years from the current 25 models to 40. In 2015, the brand is targeting sales of 1.5 million cars. ?In order to achieve our ambitious growth objectives, we need a dedicated team,? Stadler emphasized. ?After all, the basis of our success, aside from our cars, is the people who develop, produce and sell the cars ? our employees.?

Audi is rewarding employee performance with a performance-related profit share, which will be distributed in May. This year?s total profit-sharing bonus will amount to an average of almost ?5,300 per employee. ?Compared with the competition, we are in an extremely strong position with this high profit-sharing bonus and are thus once again proving our attractiveness as an employer,? Stadler said.

Audi recognized the company?s growing need for university graduates, especially engineers, with 600 new hires in 2007. ?While many other carmakers are cutting back on jobs, we?re creating additional ones,? Stadler added. This year, Audi will hire 800 university graduates and around 700 apprentices.

The number of employees in the Audi Group went up slightly on average to the previous year to 53,347 people (up 2 percent, 52,297). Of these, 44,698 (44,701) were employed at AUDI AG, including 31,369 (31,276) in Ingolstadt and 13,329 (13,425) in Neckarsulm. With 2,002 (2,031) apprentices in 20 different trades, AUDI AG has maintained the number of those in training at the German plants at the previous year?s high level.

Outlook for 2008: securing sustainable, profitable growth

Audi has experienced a superb start to 2008: The brand recorded a sales increase of 4.7 percent in January. This positive trend continued with 71,348 vehicles sold in February, a rise of 2.6 percent. The new Audi A4 Avant will have positive effects in both quantitative and qualitative growth this year. ?We are on course to exceed the million mark for vehicle sales this year. We are going to consistently follow our path of profitable growth,? Stadler said. With the record levels achieved in 2007, Audi is among the most profitable companies in the international automotive industry. ?This lays the financial foundation for future growth based on our own strength,? Stadler emphasized.

Audi will also meet the external challenges to the automotive industry. The company has long been conscious of its responsibility toward protecting the environment: Compared with 1990, Audi now requires 36 percent less fuel to generate a kilowatt (1.36 hp) of power. And in the future, the carmaker will offer an efficiency model in each of its high-volume model lines. ?We will further strengthen our capabilities in lightweight design, improve aerodynamics, minimize frictional losses and optimize electronic components,? was the Audi Chairman?s outlook.

The company will continue to focus on a host of measures as part of its innovation strategy, and on diesel technology in particular. ?Our TDI will become the cleanest diesel in the world this year, and will achieve this through our ultra low emission system,? Stadler said. This will reduce nitric oxide emissions by up to 90 percent. ?With systems like this, we will play an active part in shaping the future of the automotive industry.?

Source: Autoblog.nl

This is definitely something for Audi fans. The brand is growing even more and more. If you look out on the street you start seeing - too - many Audis around. I'm still debating whether this is a good or bad point.

Why would it be bad?

An ironic statement about exclusivity.

Q7 and R8 is enough said really.

How about the RS4 and RS6? Not to mention the S3, S4, S5, S6 and S8. Lets also not forget the best selling model numbers which are the A3, A4, A5, A6 and A8. The sales won't significantly go up with the Q7 and definitely not with the R8. The latter is purely a show car reserved for people with a thick, thick wallet and patience.

An ironic statement about exclusivity.

How about the RS4 and RS6? Not to mention the S3, S4, S5, S6 and S8. Lets also not forget the best selling model numbers which are the A3, A4, A5, A6 and A8. The sales won't significantly go up with the Q7 and definitely not with the R8. The latter is purely a show car reserved for people with a thick, thick wallet and patience.

You forgot about my TT =P

The reliability also seems to be vastly improving....

ive never known it to be bad personally.

Ive always Driven ######, and I cant see me ever being without an Audi in the future.

it is a shame the exclusivity has been reduced, but its not like a ford focus or anything (hopefully never will be that common).

Audi :wub:

Why would it be bad?

Some companies may experience a lot of problems in relationship to adapting to growth; so many things can happen that, ultimately, quality may suffer; but fear not, Audi is in good hands: thier executives obviously knwo what they are doing and their major shareholder, VW, is not some greedy irresponisble corporation. So I can only see a bright future for this brand.

Actually i've gone off Audi a touch in recent years. Only because I dislike certain cars in certain market segments so I was really disappointed when Audi made the Q7 - just like how when Porsche made the Cayenne :(

But there is no doubting that they're REALLY on form with some of their current cars. The R8 is a staggeringly beautiful car, the RS4 and RS6 just rock so so hard.. even the new TT seems to be an improvement on the original, with a nice refreshing take on the original design.

Vorsprung Durch Technik!

I'd like to think of it this way: Q7 and Cayenne are the cash-cows that Audi and Porsche milk to fund the development of their future super-cars :) Well, Audi had been doing pretty good before Q7 was out, but Porsche really needed Cayenne to survive financially.

Audi has made an awsome turnaround. I used to hate them (before 2000), but now I love them. Their styling, performance and market reach is impressive indeed. RS4>M3, R8>Porche

Sorry buddy, RS4 is NOT > M3 ... not sure if you've ever owned either of these cars, they are totally different in that one is RWD 2 door coupe and other All wheel drive 4 door; this makes for very different driving dynamics. FYI, Top Gear reviewed them back to back incl the next C merc, guess which car won :)

The new Audis are nice tho, I'd take a RS4 over new unreleased 4 door M3.

Actually i've gone off Audi a touch in recent years. Only because I dislike certain cars in certain market segments so I was really disappointed when Audi made the Q7 - just like how when Porsche made the Cayenne :(

I didn't like the Cayenne and I still don't, not even the GTS. Why? I don't know but it's just not appealing to me. Porsche's name is automatically linked to "sports car" and the Cayenne doesn't follow that linking. Audi, on the other hand, doesn't have such linking allowing it to - almost - release any model they can think of. The Q7 was a smart move if you look at its sale figures. As I said before, I might get the Q7 as my new lease car, it's just one hell of a SUV. Just look at the new Q7 V12 TDI and its details.

I'd like to think of it this way: Q7 and Cayenne are the cash-cows that Audi and Porsche milk to fund the development of their future super-cars :) Well, Audi had been doing pretty good before Q7 was out, but Porsche really needed Cayenne to survive financially.

Do you know who buys the most Cayennes? Wives of men who already drive a Porsche to get the fake safety feeling but still drive a "Porsche". ( fact )

Sorry buddy, RS4 is NOT > M3 ... not sure if you've ever owned either of these cars, they are totally different in that one is RWD 2 door coupe and other All wheel drive 4 door; this makes for very different driving dynamics. FYI, Top Gear reviewed them back to back incl the next C merc, guess which car won :)

Define winning. In the battle between the RS4, the M3 and the C AMG there is no winner to me. I drove all three of them separately and then together in a challenge (lap around the track + cruising in normal traffic) and I still didn't choose a winner. Why? Because, in my opinion, there is none. I would pick the RS4 (Avant) because I drive one myself but that wouldn't be objective. Then again, I'm selling my RS4 so would it really be the winner?

However, we do have to understand and accept that Audi is making great numbers as of lately. I wonder what the future will bring them but I'm sure BMW and Mercedes have some strong competition awaiting them, really strong.

The Q7 was a smart move if you look at its sale figures. As I said before, I might get the Q7 as my new lease car, it's just one hell of a SUV. Just look at the new Q7 V12 TDI and its details.

You could say that about any number of things though mate - just because it made them good money, doesn't mean it is a good thing overall! Great that it lined Audi's pockets and has made them lots of money but as a trend it's just so tragic.

I'm sorry to be so narrow minded but I really really really dislike SUV's, mostly because of the sorts of people that drive them! There is this artificially inflated sense of superiority that drivers of SUV's seem to inherit once they get behind the wheel. I just dislike the way they look, the huge capacity engines required to make them go at anything more than 60MPH, and the attitude that goes with them. For what they cost i'd have sports car alternatives EVERY time - be it Porsche, VW, or BMW!

And yes I appreciate that it is down to individual opinion and not everyone wants sports cars but.. anyway.. I could go on about this all day!

Do you know who buys the most Cayennes?

Yes I do. People who have 80+ grand to spend on a car obviously :D ... want safety, performance, and large space, but don't want to drive a minivan. - this basically applies to all SUV buyers.

You could say that about any number of things though mate - just because it made them good money, doesn't mean it is a good thing overall! Great that it lined Audi's pockets and has made them lots of money but as a trend it's just so tragic.

You can't afford not to follow the trend anymore. People will start switching, that's the big problem.

I'm sorry to be so narrow minded but I really really really dislike SUV's, mostly because of the sorts of people that drive them! There is this artificially inflated sense of superiority that drivers of SUV's seem to inherit once they get behind the wheel.

You're saying that as a reply when I said I might get one as my next business car? Damn you! :p

No seriously, most of the time you're right. The average SUV owner don't know what they own and their neck barely fits in the car.

I just dislike the way they look, the huge capacity engines required to make them go at anything more than 60MPH, and the attitude that goes with them. For what they cost i'd have sports car alternatives EVERY time - be it Porsche, VW, or BMW!

Some of us have to bare space in mind. That's also the reason why I'm driving an Audi RS4 Avant and no Porsche 911 Turbo (4)S for example.

Then again, define the term "sports car". To me my Audi RS4 is a sports car but the Q7 V12 TDI is as well. That engine has enough power to pull its weight and have some extra. I'm still anxiously waiting to test drive it and then make my decision.

Yes I do. People who have 80+ grand to spend on a car obviously :D ... want safety, performance, and large space, but don't want to drive a minivan. - this basically applies to all SUV buyers.

What SUV cannot be classified as mini van in terms of size nowadays? ;)

Audi has made an awsome turnaround. I used to hate them (before 2000), but now I love them. Their styling, performance and market reach is impressive indeed. RS4>M3, R8>Porche

Agreed, I never really liked Audi until a few years ago but their new models just seem to get better and better, although I still think they are overpriced.

I love the R8, A5 and new A4.

Some of us have to bare space in mind. That's also the reason why I'm driving an Audi RS4 Avant

See, now I have boundless respect for that choice of car. I'd argue that it offers all of the practicality of the Q7 (apart from ground clearance - but then how many Q7 owners drive off road?), blistering performance and the knowledge that there aren't that many cars on the road that'll touch it.

I can't tell you how envious I am of you owning one of those mate :)

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