Audi: Innovation Leadership

Business
at Speed
Scott Keogh
President
Audi of America
14 years. 12 victories.
1.5 million
global sales by 2013
200,000
U.S. sales by 2020
Innovation
at Speed
Audi quattro®
Ferdinand Piëch
The Audi approach
88%
of Audi U.S. sales
with quattro® all-wheel drive
52%
of all U.S. luxury cars
sold with all-wheel drive
Innovations
S tronic®
OLED rear-view screens
Audi ultra®
Matrix beam LED
Audi LED technology
Following our lead
24
Hours of Le Mans
Efficiency
is everything
A dramatic revolution
2000
•
•
Average speed: 128 mph
368 laps completed
2010
•
•
•
Average speed: 140 mph
Fuel consumption reduced
more than 10% resulting in
fewer pit stops
397 laps completed
Audi TDI® hybrid technology
•
Introduced at Le Mans in 2012
•
Fuel consumption reduced 10%
further in just 12 months
•
Average speed increased 8 mph
•
23 additional laps (194 miles) covered
vs. 2011
7.2 million
gallons of fuel saved
since 2009
by Q7 TDI® and
A3 TDI® owners
A6
A7
A8
Q5
Audi 3.0 V6 TDI® engine
•
20%-30% reduction
in fuel consumption
•
Up to 30% reduction
in CO2 emissions
•
38 mpg highway (A6 TDI®)
•
More than 800 miles
on a single tank
in real world driving
Our business approach
Audi declared intent
Audi invested
• We will win Le Mans
• Spent heavily to define
• 1,500,000 global sales by
2015
• 200,000 U.S. sales
by 2020
Audi developed fans
our brand in U.S.
• $17 billion for new
models and technology
through 2016
14 models
35 variants
23 models
65 variants
70
70
60
50
55
52
55
50
45
42.0
Turning customers into Audi fans
40
52
55
55
2009
2010
45
42.0
40
30
30
2006
Awareness
Luxury
•
60
2007
Audi
2008
BMW
2009
Mercedes
2010
Lexus
2006
2007
Luxury
Luxury brand intenders would consider buying Audi
more than all luxury brands
Source: GfK Automotive Intentions and Purchases and Barometer of Automotive Awareness and Imagery Studies
Of Luxury Intenders aware of each brand *Q2 2013
2008
Purchase Consideration
Audi
BMW
Mercedes
Lexus
Turning customers into Audi fans
Brand most seriously considered by new IHG Buyers
BMW
Audi
Mercedes
Lexus
•
Source: Strategic Vision NVES, 2013 Wave 1
Audi has risen solidly to the 2nd
most seriously considered brand by
new Luxury Buyers
Turning customers into Audi fans
2012
Honda
-498
+32,049
Honda
+2448
Defectors
2061
Mercedes
-225
3813
Lexus
+2520
1293
Infiniti
+952
Acura
-346
Infiniti
-478
Toyota
-852
Audi
+18,848
5074
2286
Audi – Positive balance
Audi – Negative Balance
Conquests
Defections
Conquests
+51,404
+18,848
-32,556
VW
+94
2832
3369
Total
Balance
Defectors
Mercedes
+537
2216
Total
Balance
BMW
+2158
1881
-31,408
2097
Audi
+641
2350
2634
+641
3202
1647
Lexus
-987
VW
+1356
4329
Conquests
2595
BMW
-822
2006
Acura
+1826
Toyota
+2858
Source: Polk 2012 Full Year
•
Audi grew Conquest share and volume against all key competitors in 2012
MSRP and transaction price development
$70,000
$65,000
BMW MSRP
BMW TP
MB MSRP
MB TP
Audi MSRP
Audi TP
Lexus MSRP
Lexus TP
$60,000
$55,000
+27%
$50,000
+18%
+11%
+2%
~$9,300
trans. price
Improvement
Since 2006
$45,000
$40,000
$35,000
Source: JD Power PIN
Turning dealers into Audi fans
Turning dealers into Audi fans
•
Top NADA survey rankings
•
$600 million
facility investment
through 2015
Turning dealers into Audi fans
Turning dealers into Audi fans
2013 FC
150000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
Creating Audi fans delivers results
Volume
200000
150k +
100000
50000
0
Our global path to #1
Surpassed
Mercedes-Benz
Nearing
BMW
46%
Volkswagen Group
operating profit*
* First half 2013
of
The
Racer’sMentality
Audi Sport
250
Audi of America
267
Thank you.