Audi 2006 Annual Report Download - page 133

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Statutory requirements and provisions under the articles of incorporation on the
appointment and dismissal of members of the Board of Management and on the
amendment of the articles of incorporation
The appointment and dismissal of members of the Board of Management are laid down in
Sections 84 and 85 of German Stock Corporation Law. Members of the Board of Manage-
ment are accordingly appointed by the Supervisory Board for a period of no more than five
years. Reappointment or an extension of the term of office, in each case for no more than
five years, shall be permitted. Section 6 of the articles of incorporation moreover stipulates
that the number of members of the Board of Management shall be determined by the Su-
pervisory Board and that the Board of Management must comprise at least two persons.
Key agreements by the parent company that are conditional on a change of control
following a takeover bid
AUDI AG has not reached any key agreements that are conditional on a change of control
following a takeover bid. Nor has any compensation been agreed with members of the
Board of Management or employees in the event of a takeover bid.
Strategy
The management of the Audi Group is systematically focusing its business activities on the
objective of establishing Audi as the most successful premium brand in the world by 2015.
The 2006 financial year consequently again saw the development of a detailed set of meas-
ures designed to ensure that the defined milestones along this ambitious path are reached.
There are four strategic objectives that serve as the cornerstone measures:
Substantial rise
in profitability
Customer enthusiasm and
image leader for emotion
and quality
Most attractive
employer
Volume growth to
1.5 million vehicles
Audi – the most successful premium brand
The underlying conviction behind the strategic pillar of being the most attractive employer
on the market is that the company needs to engender long-term loyalty in its expert, dedi-
cated employees. One means of achieving this is to propagate an outstanding external im-
age as an employer. The central aim is also to offer a context in which a highly motivated
team is permanently able to keep developing. A highly motivated workforce will also reap
rewards in monetary terms: the employees’ performance-dependent profit share was reor-
ganised in 2005 to make it even more attractive.
Only with such a high-performing team can the fascinating cars of the Audi brand be de-
veloped and built to the exacting standards that customers expect. Representative surveys
confirm that the products themselves are one of the key driving forces behind a brand’s
image and prestige rating. Particularly at times of growing competition, having as strong
and desirable a brand as possible provides the basis for sustained success. The aim for the
next few years therefore remains to continue strengthening the image position of the Audi
brand worldwide. The Audi Group again made good progress in that respect in 2006. The
brand’s sporty credentials are underlined by the historic victory of the new R10 TDI in the Le
Mans 24 Hours, where it won the overall standings with the first racing car ever to be pow-
ered by a diesel engine. The A3, A6 and A8 each came top of their respective categories in
the reader poll staged by the major German motoring magazine auto motor und sport. In
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