2009 Audi Annual Report

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2009 Financials to Audi industry

Transcript of 2009 Audi Annual Report

Page 1: 2009 Audi Annual Report
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Editorial

Letter to Shareholders/Report of the Supervisory Board

Audi History

Global Cities (Charisma)

Financial Statements

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The Force of Color

5 Year financial Summary

Production

Research Partnership

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2009 was quite a remarkable year in quite a number of ways. For the

first time ever, Audi’s vehicles broke through the one

1,000,000 barrier, the crowning achievement of the 13th successive

record-breaking year. This was also the year in which the

Audi brand took its product portfolio to a new level by adding

a large number of attractive new models. As well as unvailing

completely new vehicles, such as the A3 Cabriolet, the A4 Avant

and the Audi Q5 Performance SUV. We carried out a thorough

update of our core car line A3 and A6, and brought numerous

shortly derivative versions onto the market.

2009 had turned out exactly as we had planned from the

outset: A thoroughly successful year in which passionate

enthusiasm for out exceptional car once again brought us a whole lot

closer to achieving our ambitous strategic objectives.

All the same, were not left unscathed by the global economic

crisis. Whatever happens in this current year, one thing is

certain: We will steadfastly adhere to our unique Audi

approach-innovative progressive, cosmopolitan

and responsible.

All of these qualities are Mirrored in out annual report, in which

leading authors probe intriguing aspects of the past, present

and future. In addition, the finalcial selection provides information

about our economic development and the record figures

achieved in the past year.

I wish you and interesting and entertaining read

Kind regards

Rupert Stadler

Chairman of the Board of Management

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The Audi Group again kept its word last year: despite an increasingly tough environment, we achieved our main goals and beat the record unit sales, sales revenue and earnings figures set in 2007.

Our nine Group brands delivered 6.3 million vehicles to their customers worldwide – corresponding to growth of 1.1 percent. We lifted op-erating profit, to which the Financial Services Division also made a significant contribution, by 3.0 percent to € 6.3 billion. In the light of this, we are proposing a dividend of € 1.93 for ordinary shares and € 1.99 for preferred shares.

Looking to the stock markets, 2008 was certainly an exceptional year for Audi, although the performance of our ordinary and preferred shares differed sharply. 2008 was also an eventful year in other respects: the automotive industry was hit by the full force of the financial and economic crisis in the fourth quarter. Markets have slumped worldwide – and there is no end in sight to the crisis. Our Group per-formed better than our competitors in this environment, as is illustrated by the fact that we were able to gain additional market share in many regions.

Of course, Audi is also facing huge challenges in 2009. Our goal is to lead the Group through this difficult phase safely and with a sense of proportion, although we do not know today how long it will last. Applying the strictest discipline to managing investments and current costs, systematically adjusting production to reflect market developments and leveraging all available flexibility options to safeguard our core workforce will help us achieve this objective.

“The Audi Group again kept its word late year dispite an increasingly tough environment, we achieved our main goal and beat the record unit sales, sales revenue and earning figured set in 2008”

The Audi Group is a strong business: financially, we rest on solid foundations. Today, we offer our customers the youngest, most attractive and most efficient range of models in the Group’s history. Good examples are vehicles such as the Audi A3 the Audi S4, the new Audi Q5, the SEAT Ibiza and the Škoda Superb, which we launched with great success in 2008. And, last but not least, we can rely on a motivated, highly qualified workforce. My colleagues on the Board of Management and I would like to express our sincere thanks to all employees for their tremendous commitment, without which our many successes in the past year would not have been possible.

These are all good reasons why the Audi Group can emerge stronger and more powerful from the current crisis. A key factor is that we will continue to invest selectively in the future of the Company a part of our “18 plus” strategy: in attractive new models and pioneering envi-ronmental technologies such as ever more fuel-efficient combustion engines, hybrid and electric vehicles, and second-generation biofuels.

Our mission remains the same: going forward, the Audi Group will continue to act responsibly in the interests of its customers, sharehold-ers, employees and society. For us, economic success, an intact environment and social responsibility are inseparably linked. That is also why the Group remains committed to the United Nations Global Compact.

2009 will be a very difficult year for the Audi Group. Nonetheless, I am confident that our Company brings with it all the conditions neces-sary to continue its profitable growth path in the long term. I would like to thank you for your trust and support last year, and I hope that you will continue to accompany the Audi Group on its way to the top of the automotive industry.

Sincerely,

Prof. Dr. Martin Winterkorn

Dear Shareholders,

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1899-1900On 14 November 1899, August Horch (1868 - 1951) established the company A. Horch & Cie. in the Ehrenfeld district of Cologne. Here he developed his first car, which was completed at the beginning of 1901. The company moved to Reichenbach in Saxony in March 1902 and converted to a share-issuing company two years later, which involved a further change in location. On 10 May 1904, A. Horch & Cie. Motorwagen-Werke AG was established in Zwicka

1901The first Horch car took to the road in 1901: it had a horizontal engine which developed about 4-5 hp. An additional small piston in the engine was designed to absorb the vibrations of the crankshaft. August Horch referred to this as his “impact-free” engine. Another new feature was the alloy crankcase, a pioneering achievement in car manufacturing

1902-1904Following the establishment of the company in Cologne in 1899 and its relocation to Reichenbach in Saxony in 1902, the success of Horch cars made it clear that the factory had to be expanded. On the advice of his business associ-ates, August Horch decided to establish a share-issuing company. New premises were found in Zwickau. Production started in 1904, the beginning of a long tradition of car manufacture in Zwickau

1905-19061906 saw the launch of the ‘Sulmobil’, a three-wheeled vehicle with a 3.5 hp motorcycle engine. However, the ‘Sul-mobil’ was not a success. As a result, the first ‘Original Neckarsulm Motor Car’, with a 1308 cc four-cylinder engine and 10 hp, went into production the same year.

1907-1908In 1904 Jörgen Skafte Rasmussen set up on his own as a manufacturer of boiler fittings. In 1906 he purchased a textile mill in Zschopau, Saxony. Production started there in 1907. During the First World War Rasmussen worked on a steam-driven vehicle (“Dampfkraftwagen”), from which the three letters DKW were derived

1909-1912In 1909 August Horch got into a dispute with the supervisory board of A. Horch & Cie. Motorwagen-Werke AG. Horch left the company he had set up. Shortly after, on 16 July 1909, he established a second company, Horch Automobil-Werke GmbH, in the same city. Horch lost the legal dispute over the company name. However, a solution to the prob-lem was found: the Latin translation of his name (the German word for “hark!”). The new company name, Audiwerke GmbH, became effective on 25 April.

1899-1912

August Horch

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1913-1914The International Austrian Alpine Run was one of the most famous races of its time. August Horch took part in an Audi for the first time in 1911 and won first prize. This encouraged him to enter an Audi team in the challenge trophy in the years 1912 to 1914. Audi won the team prize in each of these three years. The Alpine Challenge Trophy was presented to the Audi drivers on 27 June 1914.

1915-1921Right-hand drive originated from the age of the horse and carriage, when the coachman sat on the right-hand side. In September 1921 Audi became the first German car manufacturer to present a production car with left-hand drive, the Audi Type K. By giving the driver a better view of oncoming traffic, consequently making overtaking manoeuvres in particular safer, left-hand drive became established by the end of the 1920s.

1922-1925In 1922 the company Zschopauer Motorenwerke started manufacturing its own motorcycles. The sporting successes of the lightweight motorcycles with 2.25 hp two-stroke engine were remarkable. Victories in the Berlin Avus race in 1922 and the triple victory by the DKW team in the ADAC Reichsfahrt the same year made people sit up and take notice. The first DKW motorcycle was consequently called the “Reichsfahrt”. Over the next six years Zschopauer Motorenwerke/DKW established itself as the world’s biggest motorcycle manufacturer.

1926-1927In 1926 Horchwerke AG of Zwickau presented the Horch 303 Berlin. This was the first German eight-cylinder car to go into volume production. The engine designed by Paul Daimler had double overhead camshafts driven by a vertical shaft. With a displacement of 3132 cc, the engine initially developed an output of 60 horsepower.

1928-1929Rasmussen finally had access to a powerful engine for the DKW car (600 cc, 15 hp) in the form of the two-cylinder motorcycle unit (1927). The vehicle, which had a load-bearing body covered in imitation leather, had rear-wheel drive. It was produced in the Spandau district of Berlin from 1928.

1930-1931The first volume-built car with front wheel driveIn August 1928 J. S. Rasmussen acquired the majority of shares in Audiwerke AG. He had the DKW small car with front-wheel drive produced in large numbers at this company in Zwickau from 1931. This car also had a wooden body covered in imitation leather and the typical DKW two-stroke engine. This design formed the basis for one of the most successful German small cars of the 1930s, over 250,000 of which left the Zwickau plant up to 1942.

1913-1931

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1932On 29th June 1932, the four Saxon motor-vehicle brands Audi, DKW, Horch and Wanderer joined forces to create Auto Union AG, which had its head office in Chemnitz. The new company group was consequently able to serve all market segments, from light motorcycles to luxury saloon cars.

1933At the 1933 Berlin Motor Show, Auto Union AG presented the new Audi, its first standard-size passenger car with front-wheel drive. The company used a kind of modular design principle for the first time and the Wanderer six-cylinder engine.

1934-1935The new Auto Union received its greatest popularity boost with the success of a racing car design that was based on plans by Ferdinand Porsche. The sixteen-cylinder engine was installed behind the driver which had a very beneficial effect on the vehicle’s aerodynamics.

1936In 1936 the group management of Auto Union, which had previously directed the company from Zschopau, moved into its new main office building in Chemnitz. In the same year, central facilities for design, development and testing were set up in Chemnitz.

1937The Auto Union racing cars were high-tech products in their time. They stood for supreme achievements in motor-ve-hicle construction that concentrated above all on high-performance engines, aerodynamic design and the systematic use of lightweight construction. The Auto Union car with streamlined fairing and an output of 545 horsepower was the first to exceed a speed of 400 km/h on a normal road.

1938-1940From 1938 Auto Union AG carried out systematic rollover and crash tests, one of the first manufacturers in the motor-vehicle industry to do so. Various DKW models with sheet-metal, wooden and plastic bodyshells were tested in order to examine the various ways in which these bodies behave in a rollover.

1941-1944With the development and production of special vehicles for military purposes, Auto Union became an important supplier of vehicles to the armed forces in the mid-1930s. Following the outbreak of war, civilian production was interrupted in May 1940. After this, the company produced exclusively for military purposes.

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1945-1948On the orders of the Soviet military administration in Germany, the Saxon plants of Auto Union were dismantled in 1945 as reparations. Following this, the company’s entire assets were expropriated without compensation. On 17 August 1948 Auto Union AG of Chemnitz was deleted from the Commercial Register.

1949Loans from the Bavarian state government and Marshall Plan aid helped a new car manufacturing plant to be set up in Ingolstadt. Auto Union GmbH was established in Ingolstadt on 3 September 1949. Based on established DKW principles – front-wheel drive and two-stroke engine - production of a small but sturdy 125 cc motorcycle and a DKW delivery van started the same year.

1950 In August 1950 Auto Union produced its first post-war passenger car. This was the DKW Meisterklasse F 89 P, and was available as a saloon and a four-seater Karmann convertible. Since the facilities in Ingolstadt were not adequate for the production of this model, Auto Union used the premises of the company Rhein-metall-Borsig AG in Düsseldorf. DKW vehicles were built there until the end of 1961.

1951-1952As early as 1945, a modest number of motorcycles were built again at NSU in Neckarsulm. Within just a few years the plant developed to become one of the most important manufacturers in this sector. NSU motorcycles were state of the art. On 12 April 1951 the motorcycle racer Wilhelm Herz succeeded in setting a new world record on a section of the Munich-Ingolstadt autobahn by reaching a speed of 290 km/h on a supercharged 500 cc NSU racing motorcycle.

1953-1954Auto Union launched a new three-cylinder model in time for the 1953 German Motor Show. This went by the name of “3=6 Sonderklasse”. It was developed before the war in Chemnitz and was supposed to go into volume production in 1940. The name 3=6 referred to the fact that a three-cylinder two-stroke engine had the power characteristic of a six-cylinder four-stroke engine thanks to twice the number of combustion cycles.

1955-1956NSU Werke AG in Neckarsulm proudly announced a total production volume of 342,583 two-wheeled vehicles (including 45,747 bicycles). This made NSU the world’s leading manufacturer of two-wheelers. At the same time, motorcycle euphoria had reached its climax. As their wealth increased, customers became more and more demanding about their personal mode of transport. The car became the new people’s dream in the economic miracle years.

1957Following an absence of almost thirty years, NSU returned to car manufacturing in 1957. The company deliber-ately opted for a small car, designed for average earners and motorcycle owners. The NSU Prinz was unveiled at the 1957 German Motor Show and, from this date on, started to offset the losses on the collapsing motorcycle market.

1945-1957

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1958At the instigation of leading entrepreneur Friedrich Karl Flick, Daimler-Benz AG acquired the majority of and, sub-sequently, the remaining shares in Auto Union GmbH on 24 April 1958. From this date until the end of 1965, Auto Union was a fully owned subsidiary of the Stuttgart-based Daimler Group.

1959With Auto Union having stopped all motorcycle production activities in autumn 1958, its new car plant in Ingolstadt went into operation in the summer of 1959. This was one of the most modern production facilities in Europe. In 1962 the Auto Union plant in Düsseldorf was sold to Daimler-Benz.

1960-1963 The open-top two-seater on the NSU stand at the 1963 Frankfurt Motor Show was a sensation. Known as the Wankel Spider, this small two-seater had a single-rotor rotary piston engine at the rear. NSU had been working together with Felix Wankel on a new engine concept since the beginning of the 1950s: instead of a reciprocating piston, a rotor compressed the fuel/air mixture (rotary piston engine).

1964 Once again at the instigation of leading industrialist Friedrich Karl Flick, Volkswagenwerk AG acquired the majority of shares in Auto Union GmbH in December 1964. The Ingolstadt-based company became a fully owned VW subsidiary from the end of 1966.

1965All work on the two-stroke engine came to an end when Auto Union became part of the Volkswagen Group. A four-cylinder four-stroke engine developed previously under Daimler-Benz - known as the “medium-pressure” engine - was installed in the last DKW model F 102 and presented as an Audi in the summer of 1965.

1966-1967 In September 1967, NSU presented a completely new model in the upper mid-size category, the NSU Ro 80. Its out-standing feature was a 115 bhp twin-rotor rotary piston engine. Its modern body was ahead of its time and featured styling elements that only became the norm in body design several years later. The NSU caused a major sensation, but was unable to help the Wankel principle make the breakthrough hoped for.

1968 On 26 November 1968, Auto Union invited dealers and the press to attend the presentation of the newly designed Audi 100 at the Ingolstadt City Theatre. This model, developed by technical director Dr. Ludwig Kraus, took Audi into the competitive market segment of the upper mid-size class for the first time. The Audi 100 quickly became a best-seller and formed the basis for a new Audi model series that ensured the future independence of the Audi brand.

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1969In March 1969, NSU Motorenwerke AG, which had just been taken over by VW, and the Ingolstadt-based Auto Union GmbH merged to form Audi NSU Auto Union AG, which had its head office in Neckarsulm.

1970-1972In the summer of 1972, the chairman of technical engineering Dr. Ludwig Kraus presented the Audi 80, the continu-ation of the model policy started with the Audi 100. This car used a four-cylinder OHC engine which was later also adopted by the Volkswagen Group, ultimately becoming the engine with the highest production volume at VW. The Audi 80 was a smash hit. Over a million of this model were built and sold within six years.

1973-1974September 1974 saw the launch of the Audi 50, the smallest car in the Audi model range and Audi’s answer to the energy crisis of the early 1970s. Since this was planned as a high-volume model from the outset, the small Audi was built at VW in Wolfsburg. Six months after the appearance of the Audi 50, this model was also launched on the market as the VW Polo.

1975-1980In March 1980, a four-wheel-drive sports coupé caused a genuine sensation on the Audi stand at the Geneva Motor Show. The Audi quattro was the first high-performance vehicle with four-wheel drive. This drive concept had previ-ously only been used on trucks and off-road vehicles. The permanent four-wheel-drive system in the Audi quattro enjoyed worldwide success in motor sport and gradually found its way into the entire Audi model range.

1981-1982In autumn 1982, Audi NSU Auto Union AG presented the third-generation Audi 100 (known internally as C3). Thanks to lightweight construction throughout and, above all, the car’s low drag coefficient of cD = 0.30, the new Audi 100 was synonymous with progressive design. In the words of the German publication Auto-Zeitung, “in terms of aerody-namics, the new Audi 100 outclasses the rest of the automotive world.”

1983-1985When production of the Ro 80 was discontinued in 1977, the use of the name NSU as a product designation also came to an end. With effect from 1 January 1985, Audi NSU Auto Union AG was renamed AUDI AG. At the same time the company moved its head office from Neckarsulm to Ingolstadt. From this time on, products and the company had the same name.

1969-1985

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1986In autumn 1986, AUDI AG presented the third generation of the Audi 80, known internally as the B3. As with the Audi 100/200 model range the year before, the Audi 80 was now also given a fully galvanised body with a ten year warranty against rust penetration. With a drag coefficient of 0.29, the Audi 80 displayed excellent aerodynamics.

1987-1988In 1988 AUDI AG ventured into the premium class for the first time with the launch of the Audi V8. This new model was fitted with a 184 kW (250 bhp) 3.6-litre eight-cylinder alloy engine. Technical details included permanent four-wheel drive, four valves per cylinder and a four-speed, electronically controlled automatic transmission.

1989After over 13 years in development, Audi engineers succeeded in cultivating diesel direct injection, which had previ-ously only been used on trucks, for car diesel engines as well. In conjunction with a turbocharger, it was also possible to achieve an extremely low-loss combustion process which resulted in very economical fuel consumption. In the autumn of 1989, the Audi 100 was presented at the Frankfurt Motor Show with a 2.5-litre five-cylinder TDI engine.

1990-1991Audi presented two sensational sports car studies in the autumn of 1991: the Audi quattro Spyder at the Frankfurt Motor Show and the Audi Avus quattro at the Tokyo Motor Show. The consistent use of aluminium for the bodyshells of these two model studies made reference to the future use of lightweight construction in volume production at Audi.

1992-1993 For some years AUDI AG had been working together with the Aluminum Company of America on the development of a lightweight aluminium production car. The result was presented at the 1993 Frankfurt Motor Show: the aluminium study known as the Audi Space Frame. The body used new design principles: extruded aluminium sections connect-ed together by diecast nodes form a frame structure into which aluminium panels are integrated, where they have a load-bearing function.

1994 In March 1994, AUDI AG presented its new model in the premium segment, the Audi A8, at the Geneva Motor Show. This was the first production model with all-aluminium body. At the same time a new naming process was introduced for the Audi models. From then on the Audi 80 was known as the A4, the Audi 100 was called the A6. They were followed in 1996 by the Audi A3, the first representative of the compact class. Production of the Audi A2, the first volume-built aluminium car, commenced in June 2000.

1995-2008Audi Developing street legal R8 to promote turbo charged sports cars. Turbo charger is being developed to be stron-ger, harder and faster. The Frankfort Motor show displayed the R8 in multiple different colors to advertise the future of Audi.

1986-2008

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Charisma

Montreal, Sydney and Cape Town confidently set trends and cultivate their unique characters. Short stories by young literati have captured what it is that makes these cities tick, while a photo gallery of Audi’s latest models accompanies readers on their journey through these metropolises- this is no ordinary declaration of love.

The sensuous

The mysterious

The multifaceted

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EUR Million Notes 2009 2008

Revenue 1 34,196 33,617

Cost of Sale 2 -28,848 -28478

Gross Profit 5,348 5,139

Distrabution Costs 3 -3,240 -2,737

Administrative expences 4 -302 -266

Other operating income 5 1,588 1,266

Other operating expences 6 -622 -697

Operating profit 2,772 2,705

Results from invesments 7 57 47 accounted for using the equity method

Financing costs 8 -293 -237

Other Financial results 9 641 400

Financial Results 405 210

Profit befor tax 3,177 2,915

Income tax expence 10 -970 -1,223

Profit after tax 2,207 1,692

of which profit share of minority interests 29 38

of which profit whare of AUDI AG stockholders 2,178 1,654

Appropriation of profit share due to AUDI AG stockholders

Profit transfer to Volkswagen AG 11 -1,230 -1,412

Transfer to retain earnings 948 242

EUR Notes 2009 2008

Earnings per share 12 50.66 38.46

Diluted earnings per share 12 50.66 38.46

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ASSETS in EUR million Note Dec. 31, 2009 Dec. 31, 2008

Non-current assets 9,537 8,325

Fixed assets 8,190 7,379

Intangible assets 14 2,112 2,022

Property, plant and equipment 15 5,846 5,178

Investment property 16 5 9

Investments accounted for 152 121 using the equity method

Other long-term invesments 17 75 49

Defferred tax assets 18 691 660

Other receivables and other 19 656 286 financial assets 19 152 661

Current assets 16,519 14,253

Inventories 20 3,347 2,661

Trade Receivables 21 2,215 2,149

Effective income tax 22 w17 5

Other Receivables and other 19 5,318 1,365 financial asstes

Securities 23 789 1,333

Cash and Cash equivalents 23 4,833 6,740

Balance sheet total 26,056 22,578

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LIABILITIES in EUR million Notes Dec. 31.2009 Dec. 31, 2009

Equity 10,328 8,355

AUDI AG stockholders’ interest 24 9,960 8,312

Issued capital 24 110 110

Capital 24 1,617 911

Retained earnings 24 8,233 7,291

Minority interests 24 368 43

Liabilities 15,728 14,223

Non-current liabilities 6,029 5,269

Financial liabilities 25 3 4

Defferred tax liabilities 26 78 5

Other liabilities 27 447 288

Provision for pensions 28 1,946 1,957

Effective income tax obligations 29 853 588

Other Provisions 30 2,702 2,427

Current liabilities 9,699 8,954

Financial liabilities 25 673 527

Trade payables 31 3,302 2,794

Effective income tax obligations 29 128 375

Other liabilities 27 3,094 3,013

Other provisions 30 2,502 2,245

Balance sheet total 26,056 22,578

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Psychology

Red stimulates, blue soothes. Coffee served from a brown pot is precieved as strong.Colors have a greater influence on us than we think. experts try to decipher there impact and predict color trends. Outside the ever-changing world of fashion. This is also crucial in automotive design, where car color can make or break a sale.

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Like death and taxes, there is no escaping color. It is ubiquitous. Yet what does it all mean? Why are people more relaxed in green rooms? Why do weightlifters do their best in blue gyms? Colors often have different meanings in various cultures. And even in Western societies, the meanings of various colors have changed over the years. But today in the U.S., researchers have generally found the following to be accurate.

BlackBlack is the color of authority and power. It is popular in fashion because it makes people appear thinner. It is also stylish and timeless. Black also implies submission. Priests wear black to signify submission to God. Some fashion experts say a woman wearing black im-plies submission to men. Black outfits can also be overpowering, or make the wearer seem aloof or evil. Villains, such as Dracula, often wear black.

WhiteBrides wear white to symbolize innocence and purity. White reflects light and is considered a summer color. White is popular in decorating and in fashion because it is light, neutral, and goes with everything. However, white shows dirt and is therefore more difficult to keep clean than other colors. Doctors and nurses wear white to imply sterility.

RedThe most emotionally intense color, red stimulates a faster heartbeat and breathing. It is also the color of love. Red clothing gets noticed and makes the wearer appear heavier. Since it is an extreme color, red clothing might not help people in negotiations or confrontations. Red cars are popular targets for thieves. In decorating, red is usually used as an accent. Decorators say that red furniture should be perfect since it will attract attention.The most romantic color, pink, is more tranquilizing. Sports teams sometimes paint the locker rooms used by opposing teams bright pink so their opponents will lose energy.

BlueThe color of the sky and the ocean, blue is one of the most popular colors. It causes the op-posite reaction as red. Peaceful, tranquil blue causes the body to produce calming chemi-cals, so it is often used in bedrooms. Blue can also be cold and depressing. Fashion con-sultants recommend wearing blue to job interviews because it symbolizes loyalty. People are more productive in blue rooms. Studies show weightlifters are able to handle heavier weights in blue gyms.

GreenCurrently the most popular decorating color, green symbolizes nature. It is the easiest color on the eye and can improve vision. It is a calming, refreshing color. People waiting to appear on TV sit in “green rooms” to relax. Hospitals often use green because it relaxes patients. Brides in the Middle Ages wore green to symbolize fertility. Dark green is masculine, con-servative, and implies wealth. However, seamstresses often refuse to use green thread on the eve of a fashion show for fear it will bring bad luck.

YellowCheerful sunny yellow is an attention getter. While it is considered an optimistic color, peo-ple lose their tempers more often in yellow rooms, and babies will cry more. It is the most difficult color for the eye to take in, so it can be overpowering if overused. Yellow enhances concentration, hence its use for legal pads. It also speeds metabolism.

PurpleThe color of royalty, purple connotes luxury, wealth, and sophistication. It is also feminine and romantic. However, because it is rare in nature, purple can appear artificial.

BrownSolid, reliable brown is the color of earth and is abundant in nature. Light brown implies genuineness while dark brown is similar to wood or leather. Brown can also be sad and wist-ful. Men are more apt to say brown is one of their favorite colors. Colors of the Flag

In the U.S. flag, white stands for purity and innocence. Red represents valor and hardiness, while blue signifies justice, perseverance, and vigilance. The stars represent the heavens and all the good that people strive for, while the stripes emulate the sun’s rays. Food For Thought while blue is one of the most popular colors it is one of the least appetizing. Blue food is rare in nature. Food researchers say that when humans searched for food, they learned to avoid toxic or spoiled objects, which were often blue, black, or purple. When food dyed blue is served to study subjects, they lose appetite.Green, brown, and red are the most popular food colors. Red is often used in restaurant decorating schemes because it is an appetite stimulant.

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0 100 200 300 400 500 600

2004

2005

2006

2007

2008

2009

E U R O S

225.00 Euros

201.10 Euros

339.50 Euros

545.00 Euros

579.99 Euros

434.48 Euros

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YELLOWThe color of the sun conveys optimism and chearfulness but yellow also symbolizes negitive assocations deceit, anger, envy, disease- especially when combine with black. This imperial color is Asia it also carries poisitive connotations of wisdom and dignity. Its the car color of choice for the bold owner of a small vehical who wants to attract attention.

REDThe only color that counts among the 100 most important words in nearly all of the worlds languages. Symbolizing en-ergy and passion, it increased the heart rate and breathing. It is also a univeral warning signal. In China, it is also the color of good luck. This was a very popular car color in the 1990’s before it almost disappeared, it is making an historic comback. Conveys athleticism and impulsiveness.

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GREEN Represents health and nature, and also symbolizes envy orex-perience. The evergreen chrismas tree symbolizes eternal life. A safe haven between energetic red and passive blue. A green light signals that everything is OK, that the right solution has been found. Not currently a widespread car color.

BLUEUsed in uniforms, it communicates allegiance to the state and symbolizes loyalty, order and rationality considered to be a masculine color, it conveys distance, coldness and also melan-choly (blue). In southern countries, blue window shutters and doors are thought to attract good spirits. Blue (specificly dark blue) is the third most popular car color. Revitalized by metal-lic colors with turquise hues.

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Conservative, but always in fassion. Functional not flashy: that’s the message communicated by this classic color. Though the color radiates respectability and strength, it also symbolizes death and mourning. That is, with the exeption of China, where black is associated with power and money. Black is the color of the Government vehicles. Dark cars appear more serious and distinguished than light colored cars.

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White standard for techniqual progress, immaculant innocence and pure nature. In Asia, it is the color of sorrow and symbolizes the tradition into a new state; rebirth. More popular as a car color in North America and Asia than it is in Europe, where it is on the rise. White cars come across as light and airy. White offers a wide range of hues and shades.

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Color Makes Cars Psychology Vorsprung

Painting a car is a complex process. What does it look like when an Audi

is dressed up? Find out here at: www.audi.com/ar2009/psychology

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Production

In the past years, the Audi Group increased vehicle production by 4.9% to 1,029,041

(980,880) vehicles. This also marked a new all-time record for the company. The total

comprised 1,026,617 (978,300) vehicles of the Audi Premium brand and 2,424 (2,580)

supercars of the Lamborghini brand.

VEHICLE PRODUCTION BY MODEL

2009 2008

Audi A3 57,190 70,744

Audi A3 Sportsback 146,436 160,171

Audi A3 Cabriolet 18,570 216

Audi TT Coupe 31,101 40,417

Audi TT Roadster 10,688 16,349

Audi A4 Sedan 210,288 156,281

Audi A4 Avant 150,990 129,805

Audi A4 Cabriplet 16,790 23,641

Audi RS4 Sedan 320 2,401

Audi RS4 Avant 320 2,191

Audi RS4 Cabriolet 201 700

Audi A5 Coupe 57,324 25,549

Audi A5 Cabriolet 326 5

Audi Q5 20,324 162

Audi A6 Sedan 154,002 157,645

Audi A6 Avant 52,870 71,945

Audi A6 Allroad Quattro 10,283 16,340

Audi RS6 Sedan 454 5

Audi RS6 Avant 3,326 30

Audi Q7 59,008 77,396

Audi A8 20,140 22,182

Audi R8 5,656 4,125

Total, Audi Brand 1,026,617 978,300

Lamborghini Gallardo 1,787 1,951

Lamborghini Murcielago 637 629

Total, Lamborgini Brand 2,424 2,580

Total, Group 1,029,041 980,880

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Research Partnership

A fifty partnership between the Audi Group and a University was launched at the ingolstadt site

in 2008, Called INI.KU (Ingolstadyinstitute of the Cathalic University of Eichstatt-Ingolstadt),

it promotes research projects in the fields of Humanities, Social Science and Economics.

One result of the close partnership between the company and the research world was the

hosting of the four Doctoral students conference “Pro.Motion” in June of Last year, during

which young reesearchers were able to present the current status of their projects. The research

area spanned such a topic as lightweight construction, aerodynamics, suspention

control systems, production and logistics, electronic and software, and vehicle safety. These

conferences provided a vital forum not only for techniqual discussion among Doctoral students

but also for employees and managers of the Audi Group.

Within the Audi Group, some 120 research students are currently preparing their Doctoral theses.

80 of these doctoral projects are being carried out in partnership with universities. With a view of

promoting young talen, the company offers two different doctoral student programs, each running

for three years

Furthermore, the Audi Group promotes interaction between academia, school and the public.

throughout the past year, some 300 students and teachers of high schools in Ingolstadt took part in

a youth educational forum; a series of events staged in tandem with the Friedrich-Alexander

University of Erlangen-Nuremberg (INI.FAU). Over the past year, around 1,500 guests have attented

13 public colloquiums of the research partnership INI.TUM (Ingolstadt-Institute of the Techniqual

Instatute of Munich) and HIN Neckarsulm University Instatutes: Techniqual University of Karlsruhe

and the University of Stuttgart.

Ingolstadt-Location

• INI.KU- Ingolstadt Institutes of the Catholic University of Eichstatt-Ingolstadt Since 2008; focus: Human Resources, Management, Procurement.

• INI.LMU- Ingolstadt Insti-tutes of Ludwig-Maximilian University of MunichSince 2008; focus: Human Resources, Marketing, Sales.

• INI.FAU- Ingolstadt Institutesof Friedrich-Alexander University of Erlangen-NurenbergSince 2006; focus:information technology and New Materials.

• IAF- Institute for AppliedResearch, Ingolstadt Univer sity of Applied Science Since 2004: focus; Development of Production.

• INI.TUM- Ingolstadt Insti-tutes of the Techniqual University of Munch Since 2003; focus: Driving Analysis, Simulation.

Other Partner Universities

• EBS- European Business School,Destrich WinkelSince 2007; focus:Human Resources Managment and Business Administration

• ALL- Audi Logistics Labora-tory, Technical University of DortmundSince 2007; focus:Logistics

• Audi Lab for Market Research-University of St. Gallen Since 2006: focus: Market Research

Neckarsulm location

• HIN- Neckarsulm UniversityInstitutes: Technical University of Karlsruhe and University ofStuttgart Since 2005; focus: Construction

Gyor location(AUDI HUNGARIA MOTOR Kft.)

• Audi Hungaria Chair of Internal Conbustion Engine - SZE Gyor Since 2008; focus: Technology.

• AHI- Audi Hungaria Institute:Technical University of Budapestand SZE Gyor Since 2006; focus; Engine and Production.

AUDI GROUP PARNERSHIP WITH UNIVERSITIES

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