Audi AG: SWOT Analysis & Company Profile by BusinessReview

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									Audi AG


Audi AG: SWOT Analysis & Company

Reference code: BRAT014CP10-Q4

Published: Jul 2010

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Audi AG - SWOT Profile                                                              Page 1
Audi AG


Audi AG - Company Overview

Audi AG (Audi) is a Germany-based company engaged in the business of designing, developing, production and sales of
premium automobiles throughout the world. The company under the control of its parent company Volkswagen AG,
develops, manufactures and markets cars and engines. The Audi Group comprises the Audi and Lamborghini brands.
The company has its production facilities in Germany, China, India, Italy, Hungary and Belgium. The company also
involves in manufacturing vehicles and engines for its parent company. The company is headquartered in Ingolstadt,

Financial Performance

The company reported revenues of (Euro) EUR 29,840.00 million during the fiscal year ended December 2009, a
decrease of 12.74% from 2008. The operating profit of the company was EUR 1,605.00 million during the fiscal year
2009, a decrease of 42.10% from 2008. The net profit of the company was EUR 1,300.00 million during the fiscal year
2009, a decrease of 40.31% from 2008.

Audi AG - Key Facts

Audi AG, Key Facts

                                  Auto-Union-Strasse, Ingolstadt, ,
                                                                      Ticker Symbol, Stock
Corporate Address:                85045, Germany
                                                                                                 NSU (XETRA)

Telephone                         + 49 841 890                        No. of Employees           57,723

Fax                               + 49 841 8932524                    Financial Year End         December

URL                      Revenue (in EUR Million)           29,840.00

Industry                          Automotive                          Revenue (in USD Million)   50,288.24

Locations                         China, India, Belgium, Germany, Hungary, Italy

Source: Annual Report, Company Website, Primary and Secondary Research


Audi AG - SWOT Profile                                                                                         Page 2
Audi AG


Audi AG - Business Description

Audi AG (Audi) is one of the leading premium car designer and producer based in Germany. The company is 99.55% held
by Volkswagen AG. Audi offers a range of premium passenger, SUV's and sports cars under the brand name of Audi and
Lamborghini. The company sells its products all over the globe through exports. Audi in coordination with its subsidiaries
operates in single business segment of manufacturing Cars. The company has its manufacturing facilities located across
Ingolstadt & Neckarslum in Germany, Brussels in Belgium, Bratislava in Slovakia, Changchun in China and Aurangabad
in India.

Audi‘s Ingolstadt plant is engaged in the manufacturing of A3, A3 Sportback and the A4 Sedan and Avant models, as well
as the new A5 Coupe and the ultra-sporty S3 and S5 Coupe versions. At Neckarsulm, Audi manufactures the A4 Sedan,
A6 Sedan, Avant and allroad quattro, S6 Sedan and Avant models, as well as the A8 luxury sedan, A8 W12 and S8
versions. The company's German plant provides a range of Audi models which include: A2, A3, A4, A6, A8 and TT and
the sports models Audi S4, S6, S6 Avant and Audi S8. The Audi R8 mid-engine sports car and the RS 6 Avant are built by
quattro GmbH (a wholly owned subsidiary) at Neckarsulm. The company is engaged in the manufacturing of Skoda (A4
&A6) Sedan through its manufacturing facility located across Aurangabad in India.

The company's Belgian subsidiary, AUDI Brussels S.A. /N.V builds the A3 Sportback and the VW Polo on behalf of
Volkswagen AG. This manufacturing facility will be solely responsible for the production of new Audi A1 from 2010. Its
subsidiary, Audi Hungaria Motor Kft. develops and builds engines for Audi and other Volkswagen Group companies (Seat
and Skoda), as well as for third parties, at its manufacturing facility in Hungary. For the year ended December 2009, Audi
Hungaria sold 32,603 vehicles.

The company's subsidiary Automobili Lamborghini S.p.A. in Italy builds the Gallardo Coupe, Gallardo Spyder, Gallardo
Superleggera, Murcielago LP640 Coupe, Murcielago LP640 Roadster and Reventon super sports cars. The company is
also into the production of Lamborghini Gallardo and Lamborghini Murcielago supercars at Sant’Agata Bolognese, in
Northern Italy. Further, Audi holds a 10% stake in FAW-Volkswagen Automotive Company, Ltd. which produces Audi cars
in China.

In Italy, Volkswagen Group Italia S.P.A., a subsidiary of Automobili Lamborghini Holding S.p.A., sells vehicles of the Audi
brand and of other Volkswagen Group brands. For the year ended 2009, Volkswagen Group Italia sold 194,116 vehicles.
The Audi Vertriebsbetreuungsgesellschaft, another subsidiary of the company, is engaged in offering the dealers support,
marketing and sales services for the Audi sales organization in Germany. In addition, the company provides financial
services to its customers through Audi Leasing and Audi Bank.

For the fiscal year 2009 the company sold over 1,145,360 cars; of which,949,729, were Audi branded, 1,515 Lamborghini
and 194,116 cars were of various other Volkswagen brands.

In terms of geography, the company has segregated its operations across Germany, Rest of Europe, Asia-Pacific, North
America, Africa and South America. For the fiscal 2009, operations across Germany, Asia-Pacific, North America, Africa
and South America accounted for 29.2%, 15.6%, 9.6%, 0.8% and 0.6%, of the total revenues, respectively. Approximately
44.2% of its revenues are from Rest of European segment.


Audi AG - SWOT Profile                                                                                            Page 3
Audi AG


Audi AG - Major Products and Services

Audi AG is one of the leading premium automotive companies in the world. It products' include

Audi AG, Major Products and Services


Sport Cars


Financial Services



Source: Annual Report, Company Website, Primary and Secondary Research


Audi AG - SWOT Profile                                                                          Page 4
Audi AG


Audi AG - History

Audi AG, History

    Year                Event type                                                  Description

                                                The company established its wholly-owned subsidiary Audi (China) Enterprise
   2009      Corporate Changes/Expansions
                                                Management Co. Ltd. in Beijing, China.

                                                Audi AG was awarded the 'Automotive Lean Production Award', jointly sponsored by
   2009      Corporate Awards                   the trade publication AUTOMOBIL-PRODUKTION and the management consultants
                                                Agamus Consult in September 2009.

                                                The company acquired Brussels production plant from its parent company an
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