From：Internet Info Agency 2019-03-21 11:15:16
1.2 billion euros FINE for DieselGate, the former Audi president Stadler being arrested and some models failing to pass the WLTP, all of this caused a 3.5% drop in sales of Audi. 2018 is indeed not a lucky year for Audi. Even so Audi still had a sales profit of 3.5 billion euros with a profit margin of 6% and a profit bonus of 3,630 euros per qualified employee. This also shows Audi’s power as one of the world’s leading luxury automakers. What about the future of Audi? There is some information that we should focus on during 2019 Audi News Congress.
Q: What is the most impressive thing you remember about this year’s Audi News Congress?
A: this is the first time I went to the Audi News Annual Congress in 4 years. Before that, I went to the news congress almost every year from 2001. The most obvious change this time was the performance of Audi's senior executives: Before, senior executives sat on the stage from start to finish, but this year senior executives only went to the front desk when speaking and answering questions, and still stood there even when answering questions, the president did not wear a tie, giving a humble and easy-going impression; second, the speech of senior executives was not so high-profile as usual.
President Schot said "no doubt, we are not satisfied with these numbers...", "The most important thing is that we learned the lesson from the mistakes and reached the correct conclusion," Finance Director Alexander Seitz said. "At the end of the year, we didn't have Realizing our goals, which disappoints us and myself... It clearly reflects our failure at WLTP." "We have many plans for 2019 and beyond. Many, but not too many. This is ambitious. But it is not unrealistic. I am convinced that the potential of the Audi brand is "...these words are very decent, both humble and confident, reflecting Audi senior executives’clear understanding of reality and the future, which is called" attitude matters the most".
Q: Audi has not been in the second place of the world's luxury cars for a few years, and once again returned to the third. In the past three years, the gap with Mercedes-Benz and BMW is still widening. How Audi see that coming?
A: Audi is the only brand in the Volkswagen Group that could integrate and use all platforms and technologies. It also enjoys the synergy and economies of scale of the Volkswagen Group in various aspects such as procurement and logistics. Volkswagen has lost more than 28 billion euros in the four years because of the DieselGate Scheme and it can still quickly turn a profit. Last year's profit reached 17 billion euros. It has maintained its position as the TOP1 automaker in the whole world for three consecutive years. Relying on the technology and cost advantages brought by the Volkswagen Group, Audi's two German rivals are far behind.
Q: The most sensitive question is whether SAIC Audi and Audi will increase their shareholding ratio in Chinese joint ventures. Alexander Seitz, director of Audi's finance and China Business, said: We will have more news at the end of this year or early next year. We welcome the opening of the Chinese market. Any of our decisions will not be made by ourselves alone - all of our stakeholders will be involved in the process. What do you think?
A: I think that there are variables in the relationship between SAIC Audi and FAW Audi shares, which is a major point of view for Audi's future China strategy. This question was repeatedly asked by Chinese reporters during the annual meeting and subsequent interviews and dinners, but the Audi executives answered not much. Although Audi's statement is very cautious, it seems to back off a little in the issue of SAIC Audi. It is not as certain as before. It seems that the FAW Audi sales company also intends to change. China will cancel the corporate stock ratio and quantity restrictions for joint ventures of the whole vehicle in 2022. Alexander Seitz said at the annual meeting: If we incorporate Chinese business into operating profit like our competitors, the profit margin will be more than 1% higher. This is a profound statement, apparently dissatisfied with the current situation. I saw in Audi's annual financial report that the total after-tax profit of FAW-Volkswagen in 2018 was 3.78 billion euros. After deducting some expenses, Audi earned 327 million euros on the basis of 10% dividends, accounting for only 1/10 of Audi's total global profits. about. The sales of FAW-Volkswagen Audi accounted for one-third of Audi's global sales. This situation lasted for many years. I wrote an article called“Is FAW AUDI coming soon”many years ago. According to the existing solution, FAW Audi sales company is a wholly-owned subsidiary of FAW-Volkswagen. In other words, Audi still only has a 10% share ratio, which cannot solve Audi's interests. Therefore, FAW Audi is still not a done deal yet. For SAIC AUDI, the thing just becomes more complicated. There are many stakeholders and the game tends to be more tensive.
Q: What do you think about it?
A: It's hard to say. What is certain is that the introduction of the new policy has increased the bargaining chip of Audi, and the scope of the selection has greatly increased. It doesn't matter if you don't agree with my conditions. I can also use another partner or even build a factory. On the contrary, both FAW and SAIC should realize that the bargaining chips in their hands have become lighter. If there is no way to compromise and cooperate with Audi, once Audi has built a new enterprise, it will gradually transfer resources to the new enterprise. Although this may be a long-term process, for FAW and SAIC, it is definitely not a good thing.
Q: If Audi chooses a new partner, which one it might choose?
A: I don't think Audi will choose a traditional car company. It is very likely to choose a new independent automaker in China. Such enterprises have their own advantages in car networking and digitization, and can complement Audi. More importantly, they have no traditional burden, can maximize the business logic, value orientation, and two parties’interests will be more coordinated, and cooperation will be simpler and more efficient.
Of course, not just Audi, other international giant automakers are likely to make such choices.
BMW will take controlling stakes in the joint venture, and Tesla will build the plant independently. Who will be the next one?
Q: By 2025, Audi will launch about 30 electric models, of which the Audi Q2L e-tron model for Chinese customers will be launched in 2019. Audi said that in order to provide more financial support for electric transportation, Audi's transformation plan capital savings target will be raised to about 15 billion euros. What do you think?
A: Electrification is undoubtedly the top priority of Audi's future strategy. But what impressed me most at this annual meeting is not how many electric models Audi will produce, but what Sauter said: In the future, driving a car will be less important, and more importantly, the car network, which is why we Value-added digital services are being developed. Alexander Seitz also used the phrase "smartphones on wheels".
Schot also said: Many Europeans have also begun to follow the needs of Chinese customers for the Car Networking. China's iteration is fast and its potential is unlimited. It is also very enterprising and worth learning from people all over the world. So I prefer to expand its definition and say "in China, for the world."
In the past, German cars had to be lengthened, softened, and more luxurious in China, but that was only to adapt to the needs of Chinese characteristics, but it did not attract the interest of European and American consumers. Nowadays, in order to adapt to the needs of Chinese users for the Car Networking, German cars must learn from their own brands, make corresponding improvements, and promote them to Europe. It is really a moment, what will happen, it is worthy of attention.
Therefore, I believe that electrification + digitization will be another major attraction of Audi's China strategy in the future.
