Audi Communications China Site Communications Site Communications Johanna Barth Joachim Cordshagen Tel: +86 10 6531-3962 Tel: +49 841 89-36340 E -mail: [email protected] E-mail: [email protected] www.audi-mediacenter.com/en March 2017 B A S I C P R E S S INFORMATION Audi in China ► The China site 2 ► Highlights at the site 2 ► Important cornerstones 3 ► Engagement of Audi in China 6 ► The history of Audi in China 7 ► Facts and figures 9 ► Fuel consumption of the models named above 10 1/10 www.audi-mediacenter.com Audi Communications ► The China site Audi has been active in China since 1988 and has been the leader in the country’s premium segment ever since. AUDI AG is represented in China through its joint venture FAW-Volkswagen and its one-hundred-percent subsidiary Audi China in Beijing. The Audi joint venture FAW-Volkswagen produces the models Audi A4 L, Audi A6 L, Audi A6 L e-tron, Audi Q3 and Audi Q5 in Changchun, northern China. The Audi A6 L and the Audi A4 L were developed especially for China with a longer wheelbase. In 2017, the first locally produced Audi plug-in hybrid will be available in China: the Audi A6 L e-tron. In the plant in Foshan in the south of China, the joint venture produces the Audi A3 Sportback and the Audi A3 Sedan. In August 2016 the new Audi transmission plant at Volkswagen Automatic Transmission Tianjin (ATJ) was inaugurated. The plant supplies highly-efficient seven-speed S tronic transmissions for locally produced Audi models. The first car with the locally produced transmission is the new Audi A4 L. The new Audi facility can produce 240,000 transmissions annually. The modular production set-up would allow for this output to be doubled in a second phase. In 2016 the brand with the four rings increased sales by 3.6 percent to 591,554 cars in China including Hong Kong. The new record level made Audi the best-selling premium brand in China. ► Highlights at the site Audi China Audi China was founded in 2009 as a 100% subsidiary of AUDI AG in Beijing. The company has approximately 600 employees and coordinates business cooperation between AUDI AG, the FAW Group and the joint venture FAW-Volkswagen. The chief executive of Audi China is Joachim Wedler. The business areas of Audi China include Audi R&D Beijing, Audi China Sales, Corporate Strategy and Planning, Audi China Sourcing and Quality/Technical Services. Audi Sport customer racing Asia supports Audi’s customer motorsport program in Asia and organizes the Audi R8 LMS Cup, the first brand cup of AUDI AG worldwide. In 2017, Audi won the award for the best motorsport platform from auto motor und sport China. Growth drivers Growth drivers are the locally produced models with 539,000 deliveries. The Audi Q5 was once again China’s bestselling premium SUV with deliveries of 128,140 units (plus 11.6%). With the 2/10 www.audi-mediacenter.com Audi Communications Audi A3 Sportback, the Audi A3 Sedan and the Audi Q3, the brand with the four rings is the leader in the growth segment of premium compact cars. China’s car market is the biggest in the world. Deliveries in 2016 totaled 22.84 million units. Audi and FAW intend to intensify their partnership with a long-term business plan. This plan involves adding five locally-produced e-tron models to the Audi portfolio within the next five years, including pure battery-electric vehicles with a range of more than 500 kilometers (310.7 mi). In 2017 Audi and FAW plan to set up a joint company focusing on mobility and digital services. Furthermore Audi is strengthening cooperation with important Chinese top players like Tencent, Alibaba and Baidu. ► Important cornerstones Production The production of automobiles by the joint venture in Changchun includes the four major areas of car manufacturing: press shop, body shop, paint shop and assembly. At present, the plant produces the models Audi A4 L, Audi A6 L, Audi A6 L e-tron, Audi Q3 and Audi Q5. Production at the joint venture meets the standards set by AUDI AG for all of the company’s global plants. Audi had already brought ultra-modern automotive and manufacturing technology such as laser welding and hot-wax flooding to China in the late 1990s. And in 2012, the brand with the four rings was the first car manufacturer to integrate lightweight components into local production with the new Audi A6 L. The FAW-Volkswagen plant, completed in Foshan in southern China in late 2013, produces the Audi A3 Sportback and the Audi A3 Sedan. It is the first plant in China in which models are built on the basis of the new MQB platform. “The yearly capacity of Audi production in China is around 600,000 units. The flexible plant structure allows gradual capacity expansion.” Audi sales and marketing Audi cars are sold in China through an exclusive dealer network. Distribution is managed by the Audi Sales Division (ASD) at FAW-Volkswagen and comprises more than 450 dealerships in over 190 cities. 3/10 www.audi-mediacenter.com Audi Communications In addition to the locally produced models Audi A6 L, Audi A6 L e-tron, Audi A4 L, Audi Q3, Audi Q5, Audi A3 Sportback and Audi A3 Sedan, the following 34 models are also available in China as imported cars: Audi A8 L Audi A8 L W12 Audi S8 Audi S7 Sportback Audi A7 Sportback Audi RS7 Sportback Audi S6 Audi A6 allroad quattro Audi RS6 Avant Audi TT Coupé Audi TT Roadster Audi TTS Coupé Audi TTS Roadster Audi R8 Coupé Audi R8 Spyder Audi A5 Coupé Audi A5 Sportback Audi A5 Cabriolet Audi S5 Coupé Audi S5 Sportback Audi S5 Cabriolet Audi RS5 Coupé Audi RS5 Cabrio Audi A4 allroad quattro Audi A3 Sportback Audi A3 Sedan Audi S3 Sedan Audi A3 Sportback e-tron Audi A3 Cabriolet Audi A1 Sportback Audi Q3 Audi Q5 Audi SQ5 Audi Q7 In terms of customer satisfaction, Audi continues to set the standard for China’s premium segment. The brand with the four rings was placed first once again as the leading premium brand according to the J.D. Power Customer Service Index (CSI) 2016. The J.D. Power Sales Satisfaction Index (SSI) 2016 confirmed Audi’s first place for the seventh time in succession. In order to guarantee first-class Audi service in the sales network, Audi has nearly tripled the number of training days each year for sales and workshop personnel in the past four years. China is home to the two biggest Audi training centers in the world in Beijing and in Chengdu in western China. The two centers can each train more than 10,000 employees every year. Research and development Audi R&D Beijing was established at Audi China in 2013. The development center in Beijing is part of the global Technical Development division of AUDI AG. The teams of engineers work in 4/10 www.audi-mediacenter.com Audi Communications close collaboration with customers in Asia on regional product adaptations and tests. Furthermore, the R&D employees ensure that innovations and trends from Asia flow into the concept phase of future products of AUDI AG. Audi R&D Beijing covers all areas of the global Technical Development division of AUDI AG. The development center is located in the Audi China building in Beijing’s 798 Art Zone. Designers at Audi R&D Beijing create China-specific designs and concepts and collaborate closely with the headquarters in Ingolstadt. In the battery test laboratory, extreme temperatures from -40 to +120 °C and relative humidity of up to 95% can be simulated. Among other things, the battery for the Audi A6 L e-tron developed for China is tested here. At a special test stand, engineers work on driver assistance systems going as far as piloted driving. During the first Consumer Electronics Show Asia (CES) in Shanghai, Audi was the first premium manufacturer to demonstrate the traffic-jam pilot in daily road traffic in the Chinese metropolis. Audi R&D Beijing cooperates with strong local partners. Memorandums of understandings with Alibaba, Baidu and Tencent were signed to strengthen the cooperation in the areas of data analysis, internet-vehicle platform building and urban intelligent transport. Within the strategic partnership with Baidu the popular services of Baidu CarLife are being integrated into the car. Together with Tencent Audi is developing the integration of Tencent MyCar services into Audi models. In cooperation with Alibaba the brand with the four rings has become the first premium manufacturer in China to offer high-resolution 3D maps. In the area of data communication, Audi cooperates with telecommunications-equipment company Huawei and mobile-services provider China Mobile. Audi engineers in Beijing have been developing infotainment solutions for automobile customers in China, Japan and South Korea since 2008, including a touchpad for inputting handwritten Asian characters into the navigation system. Together with the Chinese partner FAW, Audi has been active in local car development in China for 29 years. This includes country-specific testing, for example, on the basis of local geographic demands such as fitness for desert conditions. The joint venture is also involved in the prequalification and testing of locally purchased parts. 5/10 www.audi-mediacenter.com Audi Communications In close cooperation with the partner FAW, special long-wheelbase versions have been designed for the Chinese market (Audi A6 L and Audi A4 L). The additional space and comfort in the rear of these cars is intended to satisfy the preferences of Chinese customers.