Audi AG registers net profit of €4.7 billion, plans €40 billion investment in next 5 years

MUMBAI: Volkswagen Group owned, Ingolstadt based luxury car maker, Audi has registered net profit of €5.1 billion before special items in a challenging year 2017.
Post provisioning for diesel settlement agreement for North America of €387 million in 2017, the company registered an operating profit of €4.7 billion and the operating return on sales of 7.8%.

The company has surpassed a turnover of €60 billion for the first time ever, more than doubling in the last eight years.

With large part of the existing portfolio in a phase out mode, the company expects the year 2018 to be another challenging year and the expects the fruits of new launches in 2019. On its part Audi aims to launch 20 new models during the year which is biggest product onslaught in the history of the company. This also includes first fully electric series produced model the E-Tron

Audi is investing heavily in the future and is applying a comprehensive program of measures to pave the way for the profitable restructuring of its business model in line with the “Audi. Vorsprung. 2025” strategy, the company said in a statement.

Reviewing the annual earnings Rupert Stadler, Chairman of the Board of Management of AUDI AG stated, “In 2017, we demonstrated entrepreneurial strength and above all formulated a determined master plan for the coming years, we intend to play a leading role in the tremendous upheaval facing our industry.”

By 2022 alone, we have planned more than €40 billion for development activities and investment. We are making Audi fit for this mission with our Action and Transformation Plan.”

The Four Rings have significantly broadened their electrification roadmap across the entire model portfolio. For the electric mobility of tomorrow, the brand is collaborating closely with Porsche and Volkswagen. This will result in vehicle architectures that are tailored for electric driving, and which allow major synergies within the VW Group.

By 2025, Audi will offer more than 20 electrified models that will account for one third of unit sales said the company.

As a sporty spearhead, the premium manufacturer announced at its annual press conference a highly dynamic, four-door Gran Turismo with purely electric drive. Production will start early in the coming decade at the Böllinger Höfe site near Neckarsulm. “We interpret sportiness very progressively with our fully electric e-tron GT, and this is how we will take our high-performance brand Audi Sport into the future,” says Stadler.

Even in China, Audi along with its joint venture partner FAW will significantly expand its model range, especially electric drive and sporty SUVs.

Ten SUV versions without predecessors are planned for the coming five years, seven of which will be produced locally. This means that the Audi portfolio produced locally at FAW-VW will be more than doubled by 2022, the company informed.

With the joint establishment of a new sales company and a joint venture for mobility and digital services, Audi and the FAW Group are restructuring their business in China for the next growth phase. Alternatively, AUDI AG is in constructive talks with SAIC about future cooperation in order to further strengthen its involvement in the Chinese market.

With more than 20 market launches this year, Audi will manage the biggest model initiative in its history. The brand will present new automobiles in six of its core model series and successively start their production. Late this year, the Four Rings’ first fully electric series produced model will be launched: the Audi e-tron. This SUV allows fast-charging at up to 150 kilowatts, making it ready for long-distance use again in less than half an hour. The e-tron will be produced completely CO2-neutral at the converted Brussels plant where also the model’s batteries will be assembled. Audi Hungaria is ready to start production of the SUV's electric motor in Gyor, Hungary

With the conversion of the Brussels plant for the Audi e-tron, the brand is this year reorganizing the production network for important models in order to further optimize efficiency.

Manufactured in Brussels today, the Audi A1 will be located in its next generation at the SEAT plant in Martorell, Spain.

The Audi Q3 currently produced there will be assembled by Audi Hungaria after the model change.

From early 2019 on, the A3 Sedan will be produced in cooperation between its current production site in Gyor and the Ingolstadt plant. With regard to the numerous changes in the Audi portfolio and its production network, Seitz says: “2018 is an exceptional year and requires a feat of strength from Audi, which will pay off in the long term from 2019 on.”