Audi announces record profits for 2008

Despite the already noticeable effects of the financial crisis, Audi Group ended the 2008 fiscal year with yet more record-breaking figures for production, vehicle deliveries, revenue and profit.

"With our 13th successive deliveries record, 2008 was the most successful fiscal year in the history of our company. We have been steadily improving our productivity in recent years, and the main financial figures for 2008 reflect this. These positive effects make it easier for us to respond appropriately to the crisis," remarked Rupert Stadler, Chairman of the Board of Management of AUDI AG, at today's Annual Press Conference in Ingolstadt.

"In the current year too we have succeeded so far in increasing our market share in the premium segment with an attractive model range," added Stadler.

With deliveries of Audi brand vehicles up 4.1 percent to the record total of 1,003,469 automobiles, revenue for fiscal 2008 also reached a new all-time high of 34,196 million (about S$68,000 million), representing growth of 1.7 percent. Operating profit improved by 2.5 percent to 2,772 million.

Profit before tax reached another all-time high of 3,177 million (about S$6,325 million), representing growth of 9.0 percent. Profit after tax was 2,207 million (about S$4,394 million) - a rise of 30.4 percent.

"These outstanding key figures - the best ever in the history of the company - provide Audi with a sound basis for funding capital investments in its ambitious model range from its own resources over the next few years," explained Axel Strotbek, Member of the Board of Management for Finance and Organization at AUDI AG.

This success has been made possible by the newest and most attractive model range in the premium segment of the market. The new Audi A4, which also appeared on the market in an Avant body version in April 2008, was particularly successful.

Outlook for 2009: new products for an increased market share

"We are responding flexibly and proportionately to changes in the volume of orders and adjusting production at short notice in order to keep stock levels down," explained Stadler. He also made it clear that Audi would carefully assess all investments and costs that are not product-related, and prioritise.

"The 17 new models we launched last year were only possible thanks to the incredible dedication of our workforce," emphasised Dr. Werner Widuckel, Member of the Board of Management for Human Resources at AUDI AG. The company is using its entire battery of human resources measures to protect jobs and offer bright employment prospects for the future. Human resources and production turntables between the plants have long been successfully used as a means of utilising the capacity at the two locations as evenly as possible.

"The market may be in crisis, but Audi is not. We are using short-time working to protect the jobs of our core workforce. And we stand by the 'Audi's Future' agreement, which rules out any redundancies before 2011," added Widuckel.

Diesel technology will likewise remain a vital cornerstone of Audi's efficiency strategy. "This year we will launch the cleanest diesel engine in the world - we call it the 'TDI clean diesel' - in the Audi Q7 3.0 TDI," declared Stadler. This system will reduce nitrogen oxide emissions by up to 90 percent. The Audi Q7 3.0 TDI consequently already complies with the limits of the Euro 6 standard due to take effect in 2014. "This engine is impressive proof of just how much potential the diesel engine still offers," says Stadler.

2010 will see the arrival of a premium compact car in the guise of the Audi A1, with which Audi will be venturing into a new segment. "The response to the A1 studies shown at Tokyo in 2007 and Paris in 2008 was very encouraging. The A1 will enable us to tap into a new, attractive target group. With its typical Audi DNA, this car will round off our model range at the lower end and boost the appeal of the Audi brand particularly among younger customers," explained Audi boss Rupert Stadler.