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Form in color:
the Audi R8 V10
Audi
2008 ANNUAL REPORT
PIONEERING SPIRIT A new lightness in car design. AUTHENTICITY Clint Eastwood makes
self-will his trademark. ORIGINS 100 years of Audi. EFFICIENCY Endurance test for TDI clean
diesel. PROGRESSIVENESS Technology meets design. One annual report – 49 x Vorsprung.

Table of contents

  • Page 1
    ... in color: the Audi R8 V10 2008 ANNUAL REPORT Audi PIONEERING SPIRIT A new lightness in car design. AUTHENTICITY Clint Eastwood makes self-will his trademark. ORIGINS 100 years of Audi. EFFICIENCY Endurance test for TDI clean diesel. PROGRESSIVENESS Technology meets design. One annual report - 49...

  • Page 2
    ...in color: the Audi A5 Cabriolet 2008 ANNUAL REPORT Audi PIONEERING SPIRIT A new lightness in car design. AUTHENTICITY Clint Eastwood makes self-will his trademark. ORIGINS 100 years of Audi. EFFICIENCY Endurance test for TDI clean diesel. PROGRESSIVENESS Technology meets design. One annual report...

  • Page 3
    Form in color: the Audi Q5 2008 ANNUAL REPORT Audi PIONEERING SPIRIT A new lightness in car design. AUTHENTICITY Clint Eastwood makes self-will his trademark. ORIGINS 100 years of Audi. EFFICIENCY Endurance test for TDI clean diesel. PROGRESSIVENESS Technology meets design. One annual report - 49...

  • Page 4
    Audi Group Key Figures 2008 Production Cars Engines Vehicle sales Audi brand Germany Outside Germany Lamborghini brand Other Volkswagen Group brands Employees Revenue Profit from operating activities Profit before tax Profit after tax Operating return on sales Return on sales before tax Return ...

  • Page 5
    ...as the A3 Cabriolet, the A4 Avant and the Audi Q5 performance SUV, we carried out a thorough update of our core car lines A3 and A6, and brought numerous sporty derivative versions onto the market. 2008 turned out to be exactly as we had planned from the outset: a thoroughly successful year in which...

  • Page 6
    ... the resolution and the trading prices of Audi shares during the period of the offer, the Supervisory Board and Board of Man- Prof. Dr. rer. nat. Martin Winterkorn Chairman of the Supervisory Board The Audi Group succeeded in maintaining the growth of recent years in the 2008 fiscal year, amid an...

  • Page 7
    ...The following change to the composition of the Board of Management of the Company took place in the past fiscal year: Effective end of February 22, 2008, Ralph Weyler, Member of the Board of Management for Marketing and Sales, left the Board of Management of AUDI AG. The Supervisory Board takes this...

  • Page 8
    //////// THE BOARD OF MANAGEMENT AXEL STROTBEK Finance and Organization MICHAEL DICK Technical Development RUPERT STADLER Chairman of the Board of Management

  • Page 9
    /////////////////////////////////////////////////////////////////////////////// DR. WERNER WIDUCKEL Human Resources FRANK DREVES Production PETER SCHWARZENBAUER Marketing and Sales ULF BERKENHAGEN Purchasing

  • Page 10
    PROGRESSIVENESS Ambra Medda and Rupert Stadler above the rooftops of New York. PAGE 26 CHARISMA The Audi TTS journeys into the colorful life of Montreal. A photo portrait based on a young author's short story. PAGE 55 6

  • Page 11
    ... meets with the director of Design Miami/, Ambra Medda 32 PROGRESSIVENESS "Timo wanted this title" Audi defended its DTM title in 2008. At the wheel: Timo Scheider 55 WINNING MENTALITY UNDERSTANDING Service in the taiga Audi Service can be relied upon worldwide - a visit to the Siberian city...

  • Page 12
    ... exciting history of the Audi brand 120 94 FORESIGHT PERFECTION Making our own luck 24 hours of hard racing at Le Mans showed that teamwork is the key to success Opportunities in crisis Audi CFO Axel Strotbek meets with economics professor Max Otte 125 SUCCESS Audi Group Finances 2008 Fuel...

  • Page 13
    PRIDE Lamborghini is at home in the narrow streets of Sant'Agata. PAGE 102 DEVOTION DTM driver Martin Tomczyk is fully focused - not only behind the wheel of his R8, but also on the PlayStation. PAGE 12 AUTHENTICITY Clint Eastwood may not be a man of many words, but as his recent films show, he ...

  • Page 14
    ..., only two of the birds showed any interest in the car on the beach. Strong winds kept Morar busy tossing the treats to get the perfect constellation of seagulls and Audi A4 for the shot. "I love capturing the exceptional amidst the ordinary," says the 36-year-old photographer. PAGE 55 01 10

  • Page 15
    ... and Appel piloted an Audi R8 around the Nordschleife - on the game console and on the circuit itself. PAGE 12 CAROLE CAPITAINE Motorsports Editor at L'Équipe, Paris For years, the 36-year-old editor has been a fixture at Formula One races. But for the 24 Hours of Le Mans, she even regularly misses...

  • Page 16
    Devotion Reality and illusion Smoking tires, roaring engines. Two Audi R8 cars charge around the track. Professional drivers are at the wheels. The one chases points in the DTM series; his opponent is a professional gamer and develops car racing games. They storm around the Nordschleife - real and ...

  • Page 17
    .... And so pedantically close to reality that the digital Nordschleife deviates from the original by no more than five centimeters at any one point. The latest, fifth version of "GT," as fans like to call their game, is coming out in 2009 with new models and new tuning options. Until then, there...

  • Page 18
    ... outside influences. Everyone around him notices as well: While Tomczyk is driving, no one utters a word. If you've never tried out another PS3 racing simulation before, you won't believe your eyes and ears when you get behind the virtual wheel of the R8. The game is so realistic that you are sucked...

  • Page 19
    ... to do with the actual driving. The sun, for example, which either blinds the driver on some parts of the track or plunges the cockpit into ...years old; the average age in Europe is between 27 and 33. The game industry has long since overtaken Hollywood in terms of global sales. And the production...

  • Page 20
    ...selection of vehicles and tracks. And we will provide more features for online communities. We are also working at full speed to create lifelike graphics that depict rain and the night. How do you recreate the cars so realistically in the game? We need the actual models in order to recreate the cars...

  • Page 21
    ... (May 6, 2008). An ASF vehicle body is not only stronger and safer than its steel counterpart; it also makes the car much lighter and consequently more fuel-efficient. But this prestigious award is just one indication of the company's innovative prowess. For the fifth successive year, the AUDI AG...

  • Page 22
    ... valuable fuel and resources. The auto industry is caught in the same "weight trap." AUDI AG has been meeting this challenge since the 1980s. Back then, out-of-the-box thinkers in the company revolutionized body design in volume production by building an aluminum frame structure, whereas today...

  • Page 23
    ... Space Shuttle's body, where engineers have been able to achieve a 45 percent reduction in weight by using innovative, fiber-reinforced alloys to replace the conventional aluminum solution. Aeronautics and space travel have always been trendsetters in lightweight design. Though the issues facing car...

  • Page 24
    Vorsprung Pioneering spirit LIGHT IS FAST Developed for the air, used in the water: Thanks to carbon fiber composite materials, this 5.2-meter kayak weighs only 12 kilograms.

  • Page 25
    "A scale mirrors the world at large. What's light will rise; what's heavy will fall." Gotthold Ephraim Lessing 21

  • Page 26
    WEIGHTLESS Light materials are essential for space travel. Whether it's the ISS or the Space Shuttle, overcoming gravity is always the first task on the path to outer space.

  • Page 27
    ..."The bottom line is that 30 percent fewer parts means 30 percent less logistics and 30 percent fewer joins. So we immediately took another look at our production processes and sought new ways to optimize our design geometry by selecting the most suitable materials," recalls Timm. AUDI AG has already...

  • Page 28
    ... design simply means that we use the best of all material worlds." Heinrich Timm, Head of the Aluminum and Lightweight Design Center, AUDI AG Engineers today are using all variations of these different components to develop an appropriate architecture. In the past several years, the Audi Group...

  • Page 29
    ... of steel - Audi Space Frame technology revolutionized auto-body design. The company has been repeatedly honored for this lightweight construction concept - most recently with the European Inventor of the Year Award. Photos: Oli Tennent/gallerystock, Christoph Mattes, nasa/actionpress, AUDI AG

  • Page 30

  • Page 31
    Progressiveness "Our design is like a fingerprint." Why does a car need to be beautiful? Ambra Medda, Director of the "Design Miami/" fair, discusses this issue with Audi boss Rupert Stadler. Both have a passion for the extraordinary. 27

  • Page 32
    ...'t a company today that can afford to sidestep the unique selling point design has to offer. Of course, that has a lot to do with the growing importance of marketing. Anyone who wants to set themselves apart from the competition is going to have to articulate this. At the latest, that's when product...

  • Page 33
    Ambra Medda and Rupert Stadler find inspiration in the diversity of color and form at the New Museum of Contemporary Art in New York City.

  • Page 34
    ...each and every detail of our cars. And that applies to both the visual and tactile appeal of our vehicles." Rupert Stadler, Chairman of the Board of Management, AUDI AG completely normal to find a product being manufactured in countless variations - options a customer can choose for himself. Anyone...

  • Page 35
    ...Audi models? Stadler: The role our company's history plays should not be underestimated. We continue to draw on a specific design language from our past and develop it further and further. In this way we are able to build an esthetic bridge to the past and the tradition of our brand. The Audi design...

  • Page 36
    ... of their vehicles. Take 35-year-old Sergei Sorin. His vehicle of choice? An Audi Q7. "A good investment," says the head of two dental clinics. It's the ideal vehicle for winter roads buried under snow - even in the city. As soon as you leave Novosibirsk's main thoroughfare, Red Prospect, ruts in...

  • Page 37
    ...alone. Machine building, energy and metallurgy also play pivotal roles in the local economy. The cockpit and tail of the Superjet 100 passenger plane, which holds great promise for Russian aviation, are manufactured here. And Akademgorodok, the internationally renowned research center, has developed...

  • Page 38
    Vorsprung Understanding 01 02 03 34

  • Page 39
    ... Schwarzenbauer, Member of the Board of Management for Marketing and Sales, AUDI AG True understanding to me means ...Half of the Audi models in Novosibirsk are pre-owned cars. Though most come from Germany, some are imported from Japan and so are right-hand drive, explains a service mechanic who...

  • Page 40
    ... that counts among the 100 most important words in nearly all of the world's languages. Symbolizing energy and passion, it increases the heart rate and breathing. A universal warning signal. In China, it's also the color of good luck. A popular car color in the 1990s before almost disappearing, it...

  • Page 41
    ... between light and dark, helping tele- vision become popular during its early black-and-white phase. And yet, Goethe's observation rings true for the colorful world: "The eye needs color as much as it needs light." This may explain the proclivity for colorful houses in Scandinavian countries, where...

  • Page 42
    ... classic color. Though the color radiates respectability and strength, it also symbolizes death and mourning. That is, with the exception of China, where black is associated with power and money. Black is the color of government vehicles. Dark cars appear more serious and distinguished than light...

  • Page 43
    ... innocence and pure nature. In Asia, it is the color of sorrow and symbolizes the transition into a new state; rebirth. More popular as a car color in North America and Asia than it is in Europe, where it is on the rise. White cars come across as light and airy. White offers a wide range of hues and...

  • Page 44
    .... The evergreen Christmas tree symbolizes eternal life. A safe haven between energetic red and passive blue. A green light signals that everything is OK, that the right solution has been found. Not currently a widespread car color. BLUE Used in uniforms, it communicates allegiance to the state and...

  • Page 45
    ... is still limited on China's roads. Uniqueness is an important selling point in Japan, where many car companies develop special colors for certain models. Customers tend to seek small cars that match their other 'accessories': car, cell phone and handbag all in cute pink, for instance." However...

  • Page 46
    Originality Fit for an emperor Purchasing a vehicle is a truly important event in a Chinese customer's life. Audi therefore relies on select dealers like Beijing DAD Automobile Sales (Deaoda) - an emporium with beauty oasis and shopping center. A visit to an unconventional dealership.

  • Page 47
    ... of Beijing DAD Automobile Sales open and senior staff welcome him like royalty. Today, Cai is taking delivery of his new Audi TT. Meticulously polished, his sports car shines in this new glass building near Beijing's 4th Ring Road. Deaoda is one of the largest Audi dealers in the world and one of...

  • Page 48
    ... showroom models are not arranged by chance; instead, their placement represents an unwritten code of harmony necessary to promote customer satisfaction and successful business. The salesroom is immaculate. The new Audi customer Cai Zhengdong himself is visibly impressed. Even the 36 service points...

  • Page 49
    ... were spent in meagerly equipped compact cars. The "Audi experience" is terra incognita for them. Therefore, 02 This emporium offers much more than just cars. 03 Customers can also make use of the time to get their hair done. 04 Air fresheners, seat covers, good-luck dragons: all available at the...

  • Page 50
    ...for him. "He left here a happy man after we showed him again how to use the MMI module to switch the suspension from Sport mode to Automatic or Comfort." It's thanks to companies like Beijing DAD Automobile Sales and managers like Shi Guiyuan and Ji Hongbo that Audi has seen such rapid growth in the...

  • Page 51
    ... 15 years of growth and consistent success: AUDI HUNGARIA MOTOR Kft. in Gyo ´´r, Hungary, celebrated a notable anniversary in spring 2008. By the end of 2008, over 16 million engines had been built at one of the world's largest engine plants since production started there. Car manufacturing...

  • Page 52
    When not on stage, Juan Diego Flórez (here at London's Royal Opera House) is devoid of attitude. His breakout role: the cocky tyrant Corradino in Rossini's "Matilde di Shabran."

  • Page 53
    ... trumpet appear on the horizon, igniting an absolute fireworks display of color and embellishments. How effortlessly the tones seem to flow forth from a man that arts reviews have come to call the tenor "the world has been waiting for." Rossini, however, would have seen it differently. In 1837, when...

  • Page 54
    ...to driving a sports car: "The various registers I sing in are like the gearshift. When I start to move towards a high note, then I will probably have to shift into fourth or fifth gear. I use a special breathing technique to exert just the right pressure, just as if I were stepping on the gas pedal...

  • Page 55
    ...the car demands an even greater level of precision. I never stop working on something until everything fits together precisely. I see the same passion, the same sparkle in the eyes of our employees. In line with our continuous improvement process, they continue to question the status quo in order to...

  • Page 56
    ... with Sebastian Wilfert. With the exception of two short pit stops, Wilfert was relegated to being a spectator during the race. Winning mentality "Timo wanted this title." Audi successfully defended the DTM title in the 2008 season. Winning driver: Timo Scheider. One of his closest associates...

  • Page 57
    ...such a victory. I have been working for Audi Motorsport in the DTM for four years now, the last two years on Timo's car. But 2008 was my first season as his chief mechanic. If asked to characterize Timo, there are a number of traits that would spring to mind: friendly, funny, active in the community...

  • Page 58
    ... to success in 2008. The year kicked off with the reader poll staged by the trade magazine auto motor und sport, which saw four Audi models - Audi A3, A4, A6 and R8 - finish top of their respective categories (issue 4/2008). In the Chinese edition, the Audi A6L and Audi Q7 were also voted "Best Cars...

  • Page 59
    Charisma Global cities Montreal, Sydney and Cape Town confidently set trends and cultivate their unique characters. Short stories by young literati have captured what it is that makes these cities tick, while a photo gallery of Audi's latest models accompanies readers on their journey through these...

  • Page 60
    Vorsprung Charisma The colorful shop windows of Mile End reflect tree branches, most of whose autumn leaves have already fallen. 01 Montreal, the sensuous Mile End is a creative melting pot. Moving amidst art and design, the TTS is at home in the streets of this quarter. The multicultural flair ...

  • Page 61
    57

  • Page 62
    "The air smells of dried leaves. Up and down the street, there's life and movement, like when I was a child." The plentiful fall harvest brings the colors of an Indian summer into the city's market halls. 58

  • Page 63
    Charisma Vorsprung Clockwise The city wind twirls the autumn leaves through the streets of Montreal. The traditional eatery Wilensky is famous for its sandwiches. The smell of foreign spices; the sound of foreign languages. Mile End has many faces.

  • Page 64
    Vorsprung Charisma Nature isn't the only one who likes to play with color. Life in Mile End, Montreal's artist district, is colorful.

  • Page 65
    The autumn sun's rays break through the canopy of the trees. "I imagine the city in superb detail and when I open my eyes I want the city to look back at me, to meet me halfway." 61

  • Page 66
    Vorsprung Charisma Moving along steel and glass facades, a fleeting glance into the depths is greeted by empty streets, by shadows and light; by elegance. * Fuel consumption and emission figures at the end of the Annual Report.

  • Page 67
    02 Sydney, the mysterious As darkness sets in, night enfolds the Australian metropolis in a veil of mystery. The search for a vanished beauty begins, hastened by a sporty and elegant companion - the Audi A3 Cabriolet*. 63

  • Page 68
    ... of Sydney at night, penetrated only by the light of street lamps. Hidden well below the city's powerful foundations, underground tunnels and passageways lead to places long since forgotten. Office lights transform the facades of city skyscrapers into works of art - or are they secret messages being...

  • Page 69
    "I don't think she wanted me to find her, she just wanted me to remember what we'd both forgotten." The movements are only fleeting shadows.

  • Page 70
    "She was always trying to find out what the city was hiding. She wasn't happy with its dazzling beauty. But beneath the surface there was only another surface." The night-time tangle of roads, bridges and underpasses is deserted - almost.

  • Page 71
    Charisma Vorsprung Sydney doesn't come alive again until nightfall - inviting another encounter. 67

  • Page 72
    Vorsprung Charisma 03 Cape Town, the multifaceted Anyone willing to tear themselves away from the city's picture postcard perfection will discover the raw side of the South African metropolis. A city buffeted by history. A city that also invites the Audi A4 to leave the beaten tourist paths.

  • Page 73
    Old cargo ships are overhauled in the dry docks of the port. The A4 rests without a sound in the shadows of the rusty giants. 69

  • Page 74
    Within sniffing distance of two oceans, a colony of black-footed penguins: The A4 nestles within the city walls.

  • Page 75
    ... you might catch a glimpse of the grazing quaggas, early relatives of the zebra. A tour through Cape Town is rich with new images, fragrances and sounds at every turn. Some impressions, however, remain unforgettable. Porcelain-blue heavens meet the dunes of the expansive beaches framing the sea. 71

  • Page 76
    Vorsprung Charisma Goodbye paradise: Cape Town, where the Atlantic meets the Pacific, is considered one of the most beautiful cities in the world. 72

  • Page 77
    .... At a ripe old age, when many people's minds are on retirement, this multitalented artist has reinvented himself. As a director, he has tackled hot social issues and taken a clear stand. A true original. Copy Holger Christmann H ow do you remain successful over a 40-year career? By staying true...

  • Page 78
    TOUGH, BUT FAIR Whether as an actor or director, justice is Eastwood's main theme.

  • Page 79
    Vorsprung Authenticity Dr. Werner Widuckel, Member of the Board of Management for Human Resources, AUDI AG / face - until a studio boss decided that Eastwood's Adam's apple was too large, which put a temporary stop to his career. He eventually landed a role in the TV western Rawhide and attracted...

  • Page 80
    ... Doubly successful: The Audi R8 came away from the 2008 World Car of the Year Awards (March 20, 2008) with the dual titles of World Performance Car and World Car Design of the Year. The international jury based its choice on the outstanding handling characteristics that keep the R8 responding safely...

  • Page 81
    There is no final frontier: In winter, extreme athlete Bubendorfer looks for new challenges on frozen waterfalls.

  • Page 82
    ...a member of a small, global community of extreme athletes whose careers and training schedules resemble a scientific experiment. The research questions are: What are the limits of human performance? What is the maximum blood volume, muscle contraction, energy efficiency? And can they be pushed just...

  • Page 83
    ... both work as management trainers, where they share the insights and routines gleaned from extreme situations with managers and business consultants. One of their most important lessons: "Success is dangerous - it makes you satisfied, contented and slow. A company that produces a successful product...

  • Page 84
    ... the wall," as he calls the low point of a run, "I break the task up into a lot of small parts; I take one good step and then the next good step, and at some point I am there." This form of selfhypnosis is called dissociation. Trubridge also tries to program his brain before the dive. He visualizes...

  • Page 85

  • Page 86
    ... Haute couture for the soul An Audi unleashes feel-good hormones. That's especially true for the creations from quattro GmbH. This luxury manufacturer converts production cars into unique works of art. To make sure that every customer's wish is fulfilled, the number one rule in Neckarsulm is...

  • Page 87
    ... high-end sector as far as price and models go, with the Audi R8, A8 and RS 6 models in the lead. But since there are important differences between individual markets, the watchword is "Think globally and act locally." That's why quattro GmbH maintains designated sales customer representatives with...

  • Page 88
    ... 2008," 3,600 existing and prospective customers were also able to find out for themselves how efficient Audi models are. The two-day fall event held in 10 German cities sought to identify the most efficient driver. Photos: AUDI AG * Fuel consumption and emission figures at the end of the Annual...

  • Page 89
    ... the trail of the Audi Mileage Marathon, U.S. writer and music journalist Marc Spitz tracks the sounds of rock 'n' roll, country and blues. The result is a deeply personal travel diary about well-known and lessthan-famous sites of cult worship in American music. A lot of careers kicked off in CBGB...

  • Page 90
    ...stop to consider them. Occasionally there's a bronze plaque out front that catches the eye, forcing you to slow down and acknowledge who slept, worked or died... to try and cover as much rock 'n' roll hallowed ground as I can. The journey begins in my town: New York City. First, I drive up the Joe ...

  • Page 91
    88

  • Page 92
    ...though the glass pyramid designed by a celebrated architect has long been a city landmark. There's good reason that Cleveland of all places was chosen to house the pantheon of the 20th century's most successful music: For years, the city had a tremendous influence as a radio bastion of rock 'n' roll...

  • Page 93
    ...best rock venues in the world," says James Iha of Smashing Pumpkins, who played one of their first concerts here some 20 years ago. "It has great sound, a great room, and a history of booking classic... Memphis. A center of the slave trade and hard-fought key city in the American Civil War, Memphis was...

  • Page 94
    ... the nuke scares in the 1950s," recounts Brendan Mullen, the club's founder. The entrance is now closed off by a chain-link fence. If you want to search for the milestones of American music history in this country, you will have to drive from ghost to ghost. So you should have a really good car. 91

  • Page 95
    ... on October 6, 2008. The Audi fleet, consisting of 23 vehicles from four model lines, mastered Manhattan traffic en route to the first-stage destination: Washington, D.C. From there, the route proceeded via Cleveland to 92 * Fuel consumption and emission figures at the end of the Annual Report.

  • Page 96
    ... Motor Sports Association, these statistics emphasize the efficiency of TDI technology. The best Audi A4 3.0 TDI consumed an average of just 5.3 liters of diesel per 100 kilometers. And the new performance SUV Audi Q5 3.0 TDI required just 6.1 liters. The Audi Q7 3.0 TDI clean diesel achieved a best...

  • Page 97
    ... own luck Peugeot was hoping its extremely fast racing cars would win this year's 24 Hours of Le Mans. What followed was one of the most exciting duels in the history of the endurance classic. In the end, a well-practiced team prevailed: Audi. The French motorsports journalist Carole Capitaine from...

  • Page 98
    ...Peugeot team announced that it planned to end Audi's dominance the next year. They wanted nothing more than to finally bring the Le Mans trophy back to France. The 76th running of the 24 Hours of Le Mans had every chance of going down as one of the most exciting in history. A promising stage was set...

  • Page 99
    ...can find out why: www.audi.com/ar2008/perfection Michael Dick, Member of the Board of Management for Technical Development, AUDI AG The pit stops are the only thing that will keep man and machine intact over the 381 laps. So much for the bare facts. But the 24 Hours of Le Mans is notorious for its...

  • Page 100
    ... pole positions and six victories in its debut year, the new Audi A4 DTM was the season's most successful car. 02 24 HOURS OF LE MANS The Audi R10 TDI remains undefeated in the 24 Hours of Le Mans. In June 2008, the diesel-powered racing car won the French endurance classic for the third year in...

  • Page 101
    98 Sustainability In-house ecosystem A new generation of skyscrapers features impressive climate-friendly technology. Top architects of our times are designing and building self-sustaining showcase structures around the globe, including New York's Hearst Tower.

  • Page 102

  • Page 103
    ... usually produces more energy than the building actually needs. The giant wind turbines and photovoltaic facades used to produce the energy turn skyscrapers into power plants. One innovative example of this revolutionary approach is the planned 309-meter high Pearl River Tower designed by Skidmore...

  • Page 104
    .... If all goes as planned, the structure should be completed by mid-2010. "We are living in a dynamic world, so the spaces we live in should also be dynamic," says David Fisher. "Buildings will flow with the rhythm of nature; they will change their direction and their form from spring to summer, from...

  • Page 105
    Pride Tracing history in Sant'Agata A Lamborghini is probably the most Italian of all sports cars. A car like its country: passionate and bursting with energy. The cult brand was born decades ago in the narrow streets of Sant'Agata, and the legend remains alive and well today. Here, in the ...

  • Page 106
    TOWN OF CONTRASTS In Sant'Agata, the common presence of the conspicuous Lamborghinis is taken for granted.

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    ... Lamborghini's auto plant delivered the first sports car in 1964, it has shown the automotive world what is possible. Miura, Diablo, Murciélago and Gallardo - these models are good examples of what sets the Lamborghini apart: a unique mixture of Italian design, uncompromising driving performance...

  • Page 108
    ... with the success. 03 Commonplace: Lamborghini is at home in the narrow streets of Sant'Agata. 04 A real find: Miura engine hood on a farm. 05 Deceleration: Rustic idyll plays counterpoint to the Lamborghini temperament. 06 Extreme athlete: Lamborghini derives its power from the country and its...

  • Page 109
    01 01 Memorable: the Lamborghini Museum, Centro Eccellenza. 02 Family ties: Moreno Conti (left) works as a test driver, his brother Maner in quality control. 03 Loves the finished form: Claudio Carretti designs auto bodies. 04 Woman power: Engineer Giulia Ganzerla is also from this area. 05 Test ...

  • Page 110
    ... heart. Many key positions remain firmly in Italian hands. Audi sees itself as the big partner who provides knowledge and technology, but who appreciates Italian skill and competence in building sports cars. "Lamborghini has become more international," auto-body designer Claudio Carretti summarizes...

  • Page 111
    ... the company decided in 1984 that design shouldn't just take place in Ingolstadt. A workshop large enough to create full-scale models is only one part of the studio. There's also a large atelier where interior and exterior designers sit at their computers, discussing the contour of rooflines, wheel...

  • Page 112
    ...abstract ideas like "lightness" are gradually worked into real objects until a finished full-scale model ultimately emerges in the modeling hall. Under the strictest secrecy, creative minds headed by Carsten Monnerjan (above) are allowed to give their imaginations free rein - even if it means coming...

  • Page 113
    ...California, come up with new concepts for automotive architectures and new interior design approaches. But there is a lot of competition between the creative professionals at Santa Monica Airport and their colleagues in Ingolstadt and Munich to come up with the best design for new production models.

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    ... of Audi Design. Ideas generated here in close cooperation with Ingolstadt's design chief might show up years later as a concept car at one of the big auto shows or even in production models. Examples include the conceptual design of the Audi A4, the first generation of the TT as well as the current...

  • Page 115
    ...much more emotionally and less technically in the United States than it is in Germany." Claus Potthoff, Executive Design Director, Audi Design Center California and gearshift knobs or fabrics for trim panels, some of the trendiest materials now have a patina, or signs of use. The worn denim look is...

  • Page 116
    ... The Audi Forum Ingolstadt reopened to customers and visitors in March 2008 after the completion of remodeling work in record time - just 10 weeks. The new car collection center, museum, factory tours, catering, independent cinema, events and service facilities create an even more exclusive world of...

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    Copy Jürgen Lewandowski Collage Arndt Knieper 1989 1929 1999 1935 1 965 1 998

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    ... the year German engineer August Horch created Audi - a Latin translation of his surname, which means "Listen!" One year later, the first Audi rolled off the Zwickau assembly line. An excursion through 100 years of automotive history with models from Audi's past. The key to their success: Vorsprung...

  • Page 119
    ... with the small DKW models, pounced on an initiative by the State Bank of Saxony and, in 1928, Audi was taken over by DKW. Rasmussen believed Audi had a future in the full-size category. From the wreckage of the collapsed U.S. motor company Rickenbacker, he bought equipment to build six- and eight...

  • Page 120
    ...destined to secure Auto Union's future. The first post-war Audi rolled off the production line on August 13, 1965 in Ingolstadt and went on sale at a price of 7,690 German marks. It was later designated "72" to denote the number of horsepower. 1 980 AUDI QUATTRO Rarely has a new technology had such...

  • Page 121
    ... Motor Show a month later. Journalists and customers alike unanimously insisted that the Coupé and Roadster - names reminiscent of the memorable sporty NSU TT models of the 1960s - go into production. Volume production started in 1998. Customers were especially attracted by the study car's original...

  • Page 122
    ...-the-line TT model celebrated its debut at the Geneva Motor Show: The successful TT is now available as an RS version.* THE BIRTH OF THE FOUR RINGS In the late 1920s, the German automotive industry underwent radical change: The pressure to rationalize, create new products and finance sales required...

  • Page 123
    ... coming" two years ago, what were the warning signs? Max Otte: Well, my basic observation was that a nation's economy, just like a business, becomes overleveraged if it takes on too much debt. And we had reached a point where total U.S. debt was almost 400 percent of its gross domestic product. Such...

  • Page 124
    Summit talks: Axel Strotbek (left) and Max Otte believe entrepreneurial action is the way out of the crisis. 121

  • Page 125
    ... in Europe. So imposing conditions on injections of capital into the European auto industry - e.g. to fund future technologies - undoubtedly makes sense and may even be essential. The German car manufacturers' banks have just tried to obtain such state aid. Is that part of such an emergency plan...

  • Page 126
    ...have moved forward. "2009 is going to be an extremely hard year, but I'm very confident that, thanks to our youthful model range, we'll fare much better than markets as a whole." Axel Strotbek, Member of the Board of Management for Finance and Organization, AUDI AG Although sustainability has been...

  • Page 127
    ... the first production car to feature the revolutionary lightweight Audi Space Frame, reducing its weight by some 140 kilograms compared with a conventional sheet steel body. PRODUCTION HYBRID MODEL AUDI DUO III The Audi brand is a pioneer in hybrid research, unveiling the Audi duo hybrid model with...

  • Page 128
    ... Written for the Audi 2008 Annual Report Montreal Mile End MADELEINE THIEN Sydney MATT RUBINSTEIN The Secret Heart HENRIETTA ROSE-INNES Cape Town The Other Safari Three award-winning young authors describe in three uniquely individual short stories what makes their cities so special.

  • Page 129
    ... her way up the staircase, Ren in the day-to-day morning ritual of opening the curtains and letting the sky in. I imagine the city in superb detail and when I open my eyes I want the city to look back at me, to meet me halfway. Instead what I see is the great empty centre of the room...

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    ... up in Mile End, I used to study the disjointed architecture - equal parts rectangle, crescent moon, and pointing finger - I tried to imagine a way up to the centre of the vast, domical roof because I wanted to see the city without myself being seen. I tripped and my right knee bruised against...

  • Page 131
    ... out to steady myself. Someone was blotting out the world, dab by dab, with a little grey tissue. I lifted my hands to stop them but they just kept coming, an army of caves. I covered my eyes. The next morning I flew home to Montreal. On est au milieu de nulle part, I told Ren on the day she left me...

  • Page 132
    ... the Old Port where I can throw my visions into the ice-flecked water. At my age, eyes fail, it's the way of things. I've changed, I tell her, but I don't know how to tell her all the ways and all the means. We all want to, she says, and she opens the door a little bit wider. End...

  • Page 133
    ..., month by month. I'm not prepared for this at all. And there are a number of things about the note that strike me as peculiar. It asks for money but not for any particular amount. It's worded very strangely. The city's most secret heart? It's almost poetic. I don't know who would write a ransom...

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    ... east to west, lined with tiny shops of the kind that used to crowd the surface. Tobacconists and barbers, shoe shiners and key cutters, seamstresses and thread merchants and hawkers. Aggie and I would meet down here for lunch, long ago; we were working in law offices at opposite ends of the tunnels...

  • Page 135
    ... able to think of the way our relationship ended, the shouting and then the silence. But now as I hurry past the old sandwich shop, the vegetarian place that serves pork, I can feel something softening inside me. There are more takeaway chains than there used to be down here, but a surprising number...

  • Page 136
    ... morning and I don't know what to do with myself. I'll just get it over with as quickly as possible. The botanic gardens are locked...work, drink some more coffee and carry on as if none of this ever happened. I've been unhappy for ten years, I can keep it up a bit longer. At the very edge of the point...

  • Page 137
    it's as dazzling as the waking city behind her. "Do you want to get some breakfast?" she says. "I have to go to work," I say. "I've been missing almost twentyfour hours." Her face falls, and I know that something's about to happen. "But I'll meet you for lunch," I add. My smile reflects hers, as the...

  • Page 138
    ... Cape Town tour. Let's call it a safari; but the creatures you meet won't be giraffes and elephants. We'll start in a random corner of the town and stroll through its less travelled streets, stopping to observe the changing light, the ground at our feet, the shapes disappearing in the shadows around...

  • Page 139
    ... and let's offer our water and energy bars to these brisk and sweaty hiking girls - German tourists, quite possibly - heading down from its cranium. So far, so good. Now let your eye drift upwards. Above the Lion's shoulders are some of the best skies in the city: dappled with puffs of frosty breath...

  • Page 140
    ... over there's an old man selling pots and pans - and machetes too, should you feel the need for personal protection. The taxis congregate here from all over - gunning through the rush-hour traffic, skidding in and out of the fast lane, stopping at will, packed tight with bodies, shuddering with the...

  • Page 141
    ... All stories about Cape Town begin and end here, it seems. So too our tour. So wave goodbye to the taxi-driver, check your possessions, and count up your souvenirs: a flake of rust from a tanker in the bay; a bedraggled gull feather; a twist of quagga hair; a fallen number-plate from a speeding taxi...

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    ... of a seal; some place you'd never expect. For a moment, you've held a city in your hand. Next second, it's scattered, never to occur in quite that combination again. And now I'll release you from the tour and let you go. Shops close late at the Waterfront - you can still make it if you rush...

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    ... ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Vorsprung Charisma www.audi.com/ar2008/charisma...

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    ... and emission figures for the vehicles named in the Management Report of the Audi Group are listed from page 232 onward. 170 Consolidated Financial Statements of the Audi Group at December 31, 2008 Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the...

  • Page 145
    ... variable components before changing its stance on this matter. Particulars pursuant to Section 6.6 of the Code No reportable acquisition or sales transactions were conducted during the past fiscal year. Stock option plans and similar securities-based incentive arrangements AUDI AG does not offer...

  • Page 146
    ... rapid, steep losses from the start of November, the trading price regained this level in the remaining weeks of the year to close 2008 at EUR 466. Audi shares thus ended the year 26 percent down on the opening price for the year, having performed well compared with the German Share Index, which...

  • Page 147
    ... models of the Audi and Lamborghini brands, the Audi Group supplied customers with 217,607 (234,144) vehicles of other Volkswagen Group brands in 2008 through its sales subsidiaries. Group structure and principal group companies The Audi Group is headquartered in Ingolstadt. This is where Technical...

  • Page 148
    ... of Volkswagen AG (Wolfsburg), the VW Polo. AUDI HUNGARIA MOTOR Kft. develops and builds engines for AUDI AG and other Volkswagen Group companies, as well as for third-party companies in GyÅ'r (Hungary). The TT and TTS models in both Coupé and Roadster body versions and, under contract from AUDI AG...

  • Page 149
    ... in AUDI AG. For details of the voting rights held in Volkswagen AG, please refer to the Management Report of Volkswagen AG. Composition of the Supervisory Board The Supervisory Board comprises 20 members. Half of them are representatives of the stockholders, elected by the Annual General Meeting...

  • Page 150
    ...market share in all important markets. The long-term model initiative is a key component of this strategy. In 2008 alone, the Company launched 17 new products, which met with great approval from customers, dealers and trade journalists around the world. Significant product launches included the Audi...

  • Page 151
    .... In the important "Best Cars" reader poll sponsored by the trade publication auto motor und sport (issue 4/2008), four Audi models came out on top: the Audi A3, Audi A4, Audi A6 and Audi R8. The Audi R8 claimed a double victory at the World Car of the Year Awards 2008 (March 20, 2008) by capturing...

  • Page 152
    133 High profitability The Audi Group management's primary objective within the scope of its "Route 15" strategy is to achieve sustainable growth. As well as further increasing the market share in key markets, high profitability in particular is at the focus of all activities. Within the context of...

  • Page 153
    ... and marketing innovative technical concepts, the Audi Group has played an instrumental role in shaping the modern automotive industry. The Company again brought numerous innovations to production maturity in the past fiscal year. The total number of employees in the Research and Development...

  • Page 154
    ... tronic is available in sporty models of the mid-range car lines. 128 128 131 134 136 139 141 147 150 157 159 160 160 161 165 169 Management Report Business and underlying situation The Group Corporate steering Research and development Employee matters Audi in society Environmental aspects Economic...

  • Page 155
    ... to brake the car if necessary. E M P LOY E E M AT T E R S Workforce 2008 Audi Group, average for the year of which: AUDI AG Ingolstadt plant Neckarsulm plant AUDI BRUSSELS S.A./N.V. AUDI HUNGARIA MOTOR Kft. Lamborghini Group 1) VOLKSWAGEN GROUP ITALIA S.P.A. 2) 1) excluding VOLKSWAGEN GROUP ITALIA...

  • Page 156
    ... voted AUDI AG's suggestions award program as the best in the car industry for the fifth time in a row (March 13, 2008). Management Report 128 128 131 134 136 139 141 147 150 157 159 160 160 161 165 169 Business and underlying situation The Group Corporate steering Research and development Employee...

  • Page 157
    .... All in all, AUDI AG offers training programs for more than 20 vocations at both German sites. The Company places great emphasis on preventative health care even during vocational training. For example, the Audi Sports Days 2008, which took place at both German locations, used "Fitness and Fairness...

  • Page 158
    ... of this regional management body stems from many years of preparatory work performed by AUDI AG at its Ingolstadt location to promote integration between the Company, the city and the surrounding districts. The overriding principle of bringing public and private sector activities together in and...

  • Page 159
    ... the Audi Group and a university was launched at the Ingolstadt site in 2008. Called INI.KU (Ingolstadt Institutes of the Catholic University of Eichstätt-Ingolstadt), it promotes research projects in the fields of humanities, social sciences and economics. One result of the close partnership...

  • Page 160
    ...statement As a globally operating company, the Audi Group actively embraces social responsibility. This includes, in particular, the principle of sustainable management, which forms an integral part of the Audi Group strategy. With its many technological innovations and efficient resource management...

  • Page 161
    ... energy recovery. 2008 saw the beginning of Phase 2 of a pilot project between AUDI AG and the Technical University of Munich to recycle the raw material nickel used in a pretreatment stage of the painting process. The goal of the research partnership is to return this resource to the manufacturing...

  • Page 162
    ... clean diesel in Audi Q7 • Launch of automatic start/stop • Vienna-Basel efficiency run in Audi A4 2.0 TDI production model • Audi Mileage Marathon, USA, with Audi TDI vehicles • 1st win for Audi R10 with 12-cylinder TDI engine in 24 Hours of Le Mans • Launch of Audi valvelift system (AVS...

  • Page 163
    ... seven-speed S tronic dual-clutch transmission has been on the market since 2008. With its impressive efficiency and intelligent control function in automatic mode, it allies the accustomed sportiness of an Audi with even greater economy. Efficiency - the sum of all parts Trendsetting innovations...

  • Page 164
    ...the Company's complete product portfolio through the modular efficiency program, thereby helping to improve fuel efficiency and cut CO2 emissions in all Audi brand vehicles. Management Report 128 128 131 134 136 139 141 147 150 157 159 160 160 161 165 169 Business and underlying situation The Group...

  • Page 165
    ... to complement classic drive concepts. The Audi Group has already been using the ultra-pure diesel fuel GTL (gas-to-liquid) in the Audi R10 TDI diesel racing car for a number of years now, and is manufacturing this fuel jointly with a venture partner. The starting material is natural gas and the...

  • Page 166
    ... its close collaboration with the Volkswagen Group. In order to make traffic flow as efficiently as possible in the future, the Company is also working intensively on advanced traffic guidance systems. The "Travolution" project, which is being implemented in conjunction with the City of Ingolstadt...

  • Page 167
    ... momentum in the second half of the year. Emerging markets in Asia helped to underpin global economic activity in 2008, though they were unable to fully escape the impact of the global downturn. The growth rate in China fell to 9.0 (13.0) percent. India continued to expand, albeit with rather less...

  • Page 168
    ... the year under review. Vehicle exports by German manufacturers in 2008 were considerably affected by downward market trends in key sales markets. Car exports fell by 4.0 percent to 4.1 million units. The principal export region of other Western European countries accounted for sales of 2.4 million...

  • Page 169
    ... COMPANY 16.3 % Other Group companies 3.1 % AUDI BRUSSELS S.A./N.V. 65.0 % AUDI AG 15.6 % AUDI HUNGARIA MOTOR Kft. Sourcing activities had to cope with persistently high price levels in the first half of 2008 and extremely volatile raw materials and energy markets in the second half of the year...

  • Page 170
    .... Priority activities in the past fiscal year were the product improvement of the Audi A6 car line and the start of production of the new Audi A5 Cabriolet and S5 Cabriolet. In 2008, the plant, which possesses unique expertise in aluminum body manufacturing, celebrated 20 years of building luxury...

  • Page 171
    ...2,580 Engine production by the Audi Group in the past fiscal year virtually matched the high tally of the previous year, reaching 1,901,760 (1,915,633) units. The share of diesel engines in the overall total was 47.3 (55.4) percent. The Group subsidiary AUDI HUNGARIA MOTOR Kft. manufactured a total...

  • Page 172
    ...11,000 Audi A4 models. In order to do so, the Company will invest over EUR 30 million in the location over the next few years. Around 50 workers are currently employed there on the Audi CKD assembly line. 128 128 131 134 136 139 141 147 150 157 159 160 160 161 165 169 Management Report Business and...

  • Page 173
    ...-efficient diesel technology is expected to provide vital stimuli for demand in the United States. DELIVERIES TO CUSTOMERS BY MODEL 2008 Audi A3 Audi A3 Sportback Audi A3 Cabriolet Audi TT Coupé Audi TT Roadster Audi A4 Sedan Audi A4 Avant Audi A4 Cabriolet Audi RS 4 Sedan Audi RS 4 Avant Audi...

  • Page 174
    ...TT models were delivered to customers in the reporting period. A4 car line The new Audi A4 Avant debuted on the market in April 2008. Like the new Audi A4 Sedan before it, this sporty midsize station wagon can be equipped with a comprehensive package of assistance systems adopted from the full-size...

  • Page 175
    156 A6 car line The Audi A6 car line was further improved last fall. A refined design with striking accents such as the redesigned Audi single-frame grille and the optionally available LED daytime running lights better embodies the character of this successful full-size vehicle. Enhanced chassis ...

  • Page 176
    ... successful new Audi Q5, which only started to appear on the markets as of last November, surpassed all expectations. This vehicle has rapidly emerged as a key source of revenue. The revenue achieved in the 2008 fiscal year by the Italian supercar brand Lamborghini also matched the previous year...

  • Page 177
    158 The Audi Group also sells vehicles of the Bentley, SEAT, Å koda, VW Passenger Car and VW Commercial Vehicle brands through the sales subsidiaries VOLKSWAGEN GROUP ITALIA S.P.A. (Verona, Italy), Audi Volkswagen Korea Ltd. (Seoul, South Korea) and Audi Volkswagen Middle East FZE (Dubai, United ...

  • Page 178
    ... the investment portfolio, financial resources previously held in the cash pool were converted to term money, resulting in a corresponding drop in cash and cash equivalents, and a rise in other current assets. Total capital investments by the Audi Group were up on the previous year's high level at...

  • Page 179
    ...the further derivatization of the Audi A4 car line. As in the previous year, cash flow from operating activities covered the investments in non-current assets in full, giving further evidence of the Company's consistently strong financial position. Net liquidity as of December 31, 2008 was EUR 9,292...

  • Page 180
    ... with entrepreneurial activity in order to safeguard the Company against potential losses and against risks to it as a going concern. To that end, a Company-wide risk management and early warning system is in place within the Audi Group. This covers AUDI AG and all its subsidiaries from which...

  • Page 181
    ... increase in the price of oil could lead not just to higher production and energy costs for the Company but also to rising fuel costs, which could make customers more reluctant to buy cars. The Audi Group has sought to pre-empt such problems by developing new, efficient drive concepts, alternative...

  • Page 182
    ... and energy efficiency. The Audi Group is also intensively researching alternative fuels and drive concepts. Management Report 128 157 159 160 160 161 161 Business and underlying situation Financial performance Net worth Financial position Report on post-balance sheet date events Risk report The...

  • Page 183
    ... in largely ensuring the continuity of internal processes and Company security. FINANCIAL RISKS The financial risks resulting from the Audi Group's business activities comprise market price risks (exchange rate, interest rate and commodity price risks), creditworthiness risks and liquidity risks.

  • Page 184
    ... drop in growth rates is equally expected in developing and emerging markets. In view of the measures taken by governments and central banks to stabilize the financial sector and bolster economic activity, the Audi Group assumes that there is no risk of the global economy descending into a more...

  • Page 185
    ...large number of additional models and derivatives should help to capture new customer segments and give the Audi brand's appeal a long-term boost in 2009. The Company therefore expects that deliveries of the Audi brand in major markets will outperform those markets as a whole, and that market shares...

  • Page 186
    ... in Germany, the highest-volume market for Audi vehicles, is to build on the already strong market position in 2009. Alongside the very successful Audi A4 and Audi A5 car lines, this process will be aided by the new Audi Q5, which has been very well received by customers, the trade and journalists...

  • Page 187
    ... product launches in 2008 alone, the model initiative will continue seamlessly in the 2009 fiscal year with major market launches such as the Audi A5 Cabriolet and S5 Cabriolet, and the highly sporty versions Audi S4 Sedan and Audi S4 Avant. Further increasing the Company's market share in key sales...

  • Page 188
    ... The Audi Group expects that, following a marked downturn in the global economy in 2009, markets will stabilize in 2010. This development is also anticipated to have a positive effect on the Company's key performance indicators. 128 157 159 160 160 161 165 165 166 169 Management Report Business and...

  • Page 189
    ... Audi Group at December 31, 2008 Income Statement of the Audi Group EUR million Revenue Cost of sales Gross profit Distribution costs Administrative expenses Other operating income Other operating expenses Operating profit Result from investments accounted for using the equity method Financing costs...

  • Page 190
    ...227 228 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial Statements Development of fixed assets 2008 Development of fixed assets 2007 General information Recognition and measurement...

  • Page 191
    ... activities Capital contributions Transfer of profit Change in financial liabilities Lease payments Cash flow from financing activities Change in cash and cash equivalents due to changes in group of consolidated companies Change in cash and cash equivalents due to changes in exchange rates Change...

  • Page 192
    ... 2007 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial Statements Development of fixed assets 2008 Development of fixed assets 2007 General information Recognition and measurement...

  • Page 193
    ... Changes in group of consolidated companies Changes from measurement at equity Gross carrying amounts Costs Jan. 1, 2008 Intangible assets Concessions, industrial property rights and similar rights and assets, as well as licenses thereto Capitalized development costs, products currently under...

  • Page 194
    175 Value adjustments in gross carrying amounts Cumulative depreciation and amortization Jan. 1, 2008 1,874 6 - 556 23 - 465 - Changes in group of consolidated companies Cumulative depreciation and amortization Dec. 31, 2008 1,994 Carrying amounts Currency changes Additions, scheduled Additions...

  • Page 195
    ... Changes in group of consolidated companies Changes from measurement at equity Gross carrying amounts Costs Jan. 1, 2007 Intangible assets Concessions, industrial property rights and similar rights and assets, as well as licenses thereto Goodwill Capitalized development costs, products currently...

  • Page 196
    177 Value adjustments in gross carrying amounts Cumulative depreciation and amortization Jan. 1, 2007 1,999 3 - 493 379 - 1,000 - Changes in group of consolidated companies Cumulative depreciation and amortization Dec. 31, 2007 1,874 Carrying amounts Currency changes Additions, scheduled ...

  • Page 197
    ... and profit transfer agreement is in force. The Consolidated Financial Statements of AUDI AG are included in the consolidated financial statements of Volkswagen AG, which are held on file at the Local Court of Wolfsburg. The purpose of the Company is the development, production and sale of motor...

  • Page 198
    ... Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial Statements 174 Development of fixed assets 2008 Development of fixed assets 2007 General information Accounting principles Group of consolidated companies Key effects of changes to...

  • Page 199
    ... countries Investments accounted for using the equity method Other countries Non-consolidated subsidiaries Germany Other countries Total 14 14 51 16 12 49 1 1 7 15 5 15 2008 2007 The principal companies within the Audi Group are listed following the Notes. The full list of companies in which shares...

  • Page 200
    ...million. The sale of AUDI DO BRASIL E CIA. (Curitiba, Brazil) to Volkswagen do Brasil Indústria de Veículos Automotores Ltda. (São Bernardo do Campo, Brazil) resulted in capital gains of EUR 103 million. As part of these selling activities, the following main groups of assets and liabilities were...

  • Page 201
    ... the current-period income statements of the respective Group companies. The foreign companies belonging to the Audi Group are foreign entities and prepare their financial statements in their local currency. The only exceptions are AUDI HUNGARIA MOTOR Kft. (GyÅ'r, Hungary) and Audi Volkswagen Middle...

  • Page 202
    ... Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial Statements 174 176 178 178 180 181 Development of fixed assets 2008 Development of fixed assets 2007 General information Accounting principles Group of consolidated companies Key effects of changes to the group...

  • Page 203
    ... is measured at amortized cost. Buildings are depreciated on a straight-line basis over a useful life of 33 years. I N V E S T M E N T S ACCO U N T E D F O R U S I N G T H E E Q U I T Y M E T H O D Companies in which AUDI AG is directly or indirectly able to exercise significant influence on...

  • Page 204
    ... for development activities and property, plant and equipment on the basis of expected product life cycles, the respective revenue and cost situation, current market expectations and currency-specific factors. Expected future cash flows to fixed assets are discounted with country-specific discount...

  • Page 205
    ... the Audi Group - this corresponds to the market value on the balance sheet date. If no active market exists, fair value is determined using investment mathematics methods, for example by discounting future cash flows at the market rate or applying established option pricing models. The fluctuations...

  • Page 206
    .... Provision is made for discernible non-recurring risks and general credit risks in the form of corresponding value adjustments. 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial...

  • Page 207
    ...A N D C A S H E Q U I VA L E N T S Securities held as current assets are measured at market value, i.e. at the trading price on the balance sheet date. Cash and cash equivalents are stated at their market value, which corresponds to the nominal value. P ROV I S IO N S F O R P E N S IO N S Actuarial...

  • Page 208
    ... for the first time in the 2008 fiscal year, from the contract manufacture of VW Polo vehicles for Volkswagen AG. Revenue is categorized by region for the purpose of segment reporting, analogously to the system used for internal Group steering and reporting. 2 Cost of sales Amounting to EUR 28,848...

  • Page 209
    ... between the dates of output and payment, as well as exchange-rate gains resulting from measurement at the mean of the buying and selling rate on the closing date. Similarly, exchange rate losses are reported under other operating expenses. 6 Other operating expenses EUR million Expenses from...

  • Page 210
    ... to a share in the profits of Volkswagen Logistics GmbH & Co. OHG (Wolfsburg). Income from the reversal of impairment losses on investments and from the disposal of investments resulted from the sale of AUDI DO BRASIL E CIA. (Curitiba, Brazil). Following the removal of this company from the group of...

  • Page 211
    ... accounts. The Audi Group has loss carryforwards totaling EUR 61 (61) million, of which the amount of EUR 57 (58) million can be used indefinitely. The realization of tax losses led to a reduction in current income tax expense of EUR 1 (19) million in the 2008 fiscal year. Deferred tax assets of EUR...

  • Page 212
    ... sheet date Statement of Interests held by the Audi Group Deferred tax assets Intangible assets Property, plant and equipment Long-term investments Inventories Receivables and other assets Other current assets Provisions for pensions Other provisions Liabilities Loss carryforwards Gross value of...

  • Page 213
    ... year. In the case of AUDI AG, the diluted earnings per share are the same as the basic earnings per share, since there were no potential shares of AUDI AG in existence at either December 31, 2008 or December 31, 2007. 2008 Profit share of AUDI AG stockholders (EUR million) Weighted average number...

  • Page 214
    ... expenses arising in connection with the loan asset sales to subsidiaries of Volkswagen AG (Wolfsburg) that do not belong to the Audi Group. Impairment losses for financial assets by category EUR million Measured at fair value Measured at amortized cost Impairment losses 2008 60 37 97 2007 - 35 35...

  • Page 215
    ...property rights and similar rights and assets, as well as licenses thereto Capitalized development costs Products currently under development Products currently in use Payments on account for intangible assets Total 488 1,452 2 2,112 472 1,451 - 2,022 Dec. 31, 2008 170 Dec. 31, 2007 99 Research and...

  • Page 216
    ... of hedging relationships." The reported receivables and other assets are not subject to any significant restrictions on ownership or disposal. Current other receivables and other financial assets EUR million Other receivables from affiliated companies of which from positive fair values of...

  • Page 217
    ... flow hedges) commodity price risks from future payment streams (cash flow hedges) Assets from hedge-ineffective derivatives Positive fair values of derivative financial instruments 1,004 1 129 1,134 849 - 52 901 Dec. 31, 2008 Dec. 31, 2007 20 Inventories EUR million Raw materials and supplies Work...

  • Page 218
    ... companies, are reported under this item. 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the Consolidated Financial Statements 174 176 178 183 189 196 200 203 209 227 228 Development of fixed assets 2008...

  • Page 219
    ... Result from securities Result from settled cash flow hedges Deferred tax items netted directly against equity Minority interests Capital contributions Other changes Difference resulting from changes in the group of consolidated companies Position as of Dec. 31, 2008 110 110 110 110 483 428...

  • Page 220
    ...value of securities -1 - - 33 - 50 - 5 - - - - - 13 - 13 - - - 130 114 - 5 - - - - - 24 Provisions for pensions and similar obligations - 177 - - 51 - - - 40 - - - - - 166 - 166 -1 - 54 - - - 16 - - - - - 129 Investments accounted for using the equity method - 14 - 14 28 - 28 15 - - - 2 11 AUDI AG...

  • Page 221
    ... of profit to Volkswagen AG is allocated to the other retained earnings. Stock option plan Under the stock option plan of Volkswagen AG (Wolfsburg), the members of the Board of Management and selected senior managers of the Audi Group were granted the right to acquire stock options for shares of...

  • Page 222
    ... convertible bond (conversion price per ten equities) was EUR 640.54. On December 31, 2008 no further convertible bonds from the stock option plan were held. Consolidated Financial Statements 170 171 172 173 Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to...

  • Page 223
    ... to hedge against currency risks from future payment streams (cash flow hedges) commodity price risks from future payment streams (cash flow hedges) Assets from hedge-ineffective derivatives Negative fair values of derivative financial instruments 125 70 47 242 49 - 2 51 Dec. 31, 2008 Dec. 31, 2007

  • Page 224
    ... releases the Company from any other benefit obligations. Current contribution payments are reported as an expense for the year in question. With regard to the Audi Group they total EUR 258 (237) million. Of this, contributions of EUR 239 (220) million were paid in Germany towards statutory...

  • Page 225
    ... plan assets is as follows: EUR million Plan assets on January 1 Changes in the group of consolidated companies and first-time adoption of IAS 19 Expected return on plan assets Actuarial gains (+) / losses (-) Employer contributions Benefits paid Effects of transfers Plan assets on December 31 2008...

  • Page 226
    ... service cost for services provided by the employees in the fiscal year Interest cost Expected return on plan assets Total 2008 - 64 - 129 23 - 170 2007 - 79 - 104 17 - 166 174 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes...

  • Page 227
    ...the following year, 46 percent in the years 2010 through 2013 and 6 percent thereafter. The provisions developed as follows: Changes in the group of consolidated companies 1 47 4 52 EUR million Obligations from sales operations Workforce-related provisions Other provisions Total Jan. 1, 2008 3,630...

  • Page 228
    ...DIS C LO S U R E S 32 Capital management The primary goal of capital management within the Audi Group is to assure financial flexibility in order to achieve business and growth targets, and to enable continuous, steady growth in the value of the Company. The capital structure is steered specifically...

  • Page 229
    ...liabilities Trade payables Other liabilities of which from negative fair values of derivative financial instruments miscellaneous other liabilities Total financial liabilities Carrying amount as per balance sheet as of Dec. 31, 2008 Measured at fair value through profit or loss Available for sale...

  • Page 230
    ... to IAS 39 categories Loans and receivables Financial liabilities measured at amortized cost Not classified under IAS 39 Measured at fair value Division into classes of IFRS 7 Measured at amortized cost Not classified under IFRS 7 - - - 90 2,215 - - 4,553 - - 6,858 - - 555 11 - - 450 186...

  • Page 231
    ... and assets Current Trade receivables Other receivables and assets of which from positive fair values of derivative financial instruments miscellaneous other receivables and assets Securities Cash and cash equivalents Total financial assets LIABILITIES AND SHAREHOLDERS' EQUITY Non-current Financial...

  • Page 232
    ...1,695 5,029 - - 23 256 - - - 26 1,290 1,595 - - 23 - - - - 28 - 51 4 - - 9 527 2,794 - - 1,695 5,029 - - - 256 - - - - 1,290 1,546 The fair values of financial assets and liabilities within the "measured at amortized cost" category are indicated in the corresponding sections, under the Notes to...

  • Page 233
    ... assets comprise the risk of default by a contractual party and therefore do not exceed the positive fair values in respect of the contractual party in question. The risk from originated financial instruments is covered by value adjustments for loss of receivables. The contractual partners for cash...

  • Page 234
    ... Specific value adjustment 19 9 -2 -7 19 EUR million Position as of January 1 Addition Utilization Dissolution Position as of December 31 2008 19 26 -8 - 37 2007 19 9 -2 -7 19 Portfolio-based write-downs are not used within the Audi Group. Collateral The Audi Group recorded financial assets as...

  • Page 235
    ...by means of sensitivity analyses. Currency risks The Audi Group is exposed to exchange rate fluctuations in view of its international business activities. The measures implemented to hedge against these currency risks are coordinated regularly between AUDI AG and the Group Treasury of Volkswagen AG...

  • Page 236
    ... listed prices of the above commodities are studied to calculate their impact on the cost structure and thus on profit before tax. Interest rate risks Interest rate risks stem from changes in market rates, above all for medium- and long-term variable-rate receivables and liabilities. The Audi Group...

  • Page 237
    ... the Audi Group: Data in Fund price risks Change in share prices Effects on equity capital Commodity price risks Change in commodity prices Effects on equity capital Effects on results Interest rate change risks Change in market interest rate Effects on equity capital Effects on results Basis points...

  • Page 238
    ... Cash Flow Statement details the payment streams for both the 2008 fiscal year and the previous year, categorized according to cash used and received for operating, investing and financing activities. The effects of changes in the group of consolidated companies and to foreign exchange rates on cash...

  • Page 239
    ... of control clauses in the event of a change in the ownership structure of AUDI AG or its subsidiaries. 39 Other financial obligations EUR million Within 1 year Ordering commitments for property, plant and equipment intangible assets Commitments from long-term rental and lease agreements Total...

  • Page 240
    ...of Management and Supervisory Board of Volkswagen AG, - associated companies, - non-consolidated subsidiaries. The volume of transactions with the parent company, Volkswagen AG, and with other subsidiaries that do not belong to the Audi Group is presented in the following overview: EUR million Sales...

  • Page 241
    ...Business transacted for related parties mainly comprises sales of new and used cars, engines and components, and allocation of cash and cash equivalents in the form of loans, fixed deposits and overnight deposits. Members of the Boards of Management or Supervisory Boards of Volkswagen AG and AUDI AG...

  • Page 242
    ... 2007 1,689 591 7 - 2,287 Other non-cash expenses 2008 786 328 316 24 1,454 2007 961 214 273 738 2,186 Germany Rest of Europe Rest of World Consolidation measures Audi Group 1,507 394 7 - 1,908 Sales revenues by region EUR million Germany Rest of Europe Asia-Pacific North America Africa South...

  • Page 243
    ... subsequent year. Members of the Board of Management may exercise their conversion rights only three times a year, during four-week exercise periods, each of which commences on a public reporting date of Volkswagen AG. In the spirit of the German Corporate Governance Code, the stock option plan is...

  • Page 244
    ... seats on other supervisory boards and regulatory bodies - pursuant to Section 285, Sentence 1, No. 10 of the German Commercial Code and Section 125, Para. 1, Sentence 3 of the German Stock Corporation Act - are indicated in the Notes to the Financial Statements of AUDI AG. The basic features of...

  • Page 245
    ... 6) Employee representative 6) Employee representative Stockholder representative 2) Honorary Chairman 1) The profession and company of the members of the Supervisory Board, together with other non-executive directorships, are presented in the Notes to the Financial Statements of AUDI AG. 2) Member...

  • Page 246
    ... Securities Trading Law that their share of voting rights in Volkswagen AG exceeded the threshold of 50 percent on January 5, 2009 and amounted on this day to 50.76 percent. 170 171 172 173 Consolidated Financial Statements Income Statement Balance Sheet Cash Flow Statement Statement of Changes in...

  • Page 247
    ... Statement of Interests held by the Audi Group for the fiscal year ended December 31, 2008 P R IN C IPA L G RO UP CO M PA N IE S Name and registered office Fully consolidated companies AUDI AG, Ingolstadt Audi Retail GmbH, Ingolstadt Audi Zentrum Berlin-Charlottenburg GmbH & Co. KG, Berlin Audi...

  • Page 248
    ..."Responsibility Statement To the best of our knowledge, and in accordance with the applicable reporting principles, the Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group Management Report includes...

  • Page 249
    ...by AUDI AG, Ingolstadt, comprising the balance sheet, the income statement, statement of recognized income and expense, cash flow statement and the notes to the consolidated financial statements, together with the group management report for the business year from January 1 to December 31, 2008. The...

  • Page 250
    ... 315a of the German Commercial Code, AUDI AG is obliged to prepare its Consolidated Financial Statements in accordance with the requirements of the International Accounting Standards Board (IASB). The regularity of the Consolidated Financial Statements and Group Management Report is assured by...

  • Page 251
    ... TT Roadster 3.2 quattro TT Roadster 2.0 TDI quattro TTS Roadster 2.0 TFSI quattro TTS Roadster 2.0 TFSI quattro Audi A4 Sedan A4 1.8 TFSI A4 1.8 TFSI A4 1.8 TFSI A4 1.8 TFSI A4 1.8 TFSI quattro A4 2.0 TFSI A4 2.0 TFSI A4 2.0 TFSI A4 2.0 TFSI A4 2.0 TFSI quattro Power output (kW) Transmission...

  • Page 252
    233 Model A4 2.0 TFSI quattro A4 3.2 FSI A4 3.2 FSI quattro A4 3.2 FSI quattro A4 2.0 TDI A4 2.0 TDI A4 2.0 TDI A4 2.0 TDI quattro A4 2.0 TDI A4 2.0 TDI quattro A4 2.7 TDI A4 2.7 TDI A4 3.0 TDI quattro A4 3.0 TDI quattro S4 3.0 TFSI quattro S4 3.0 TFSI quattro Audi A4 Avant A4 Avant 1.8 TFSI A4 ...

  • Page 253
    ..., 6-speed tiptronic, 6-speed tiptronic, 6-speed tiptronic, 6-speed tiptronic, 6-speed 6-speed R tronic, 6-speed 6-speed R tronic, 6-speed 6-speed e-gear, 6-speed 6-speed e-gear, 6-speed 6-speed e-gear, 6-speed 6-speed e-gear, 6-speed Fuel Premium Premium Premium Premium Premium Premium Super Plus...

  • Page 254
    ... premium market. Immerse yourself in one minute of Audi. 1 00 years of Audi ORIGINS From its very beginnings to the present day: the engine sounds of models that made history. A journey through time, culminating in the exciting world of Audi today. Read the history of "100 years of Audi" starting...

  • Page 255
    ... amendments to IAS 19 and 38 2) Not including securities, fixed deposits and loans 3) HGB value not shown owing to lack of comparability 4) Year-end price on Munich Stock Exchange 5) In accordance with the resolution to be passed by the Annual General Meeting of Volkswagen AG on April 23, 2009

  • Page 256
    2009 Financial Calendar Quarterly Report, 1st quarter 2009 April 27, 2009 Annual General Meeting May 13, 2009 Customer Center at Audi Forum Neckarsulm Interim Financial Report July 31, 2009 Quarterly Report, 3rd quarter 2009 October 30, 2009

  • Page 257
    2009 Financial Calendar Quarterly Report, 1st quarter 2009 April 27, 2009 Annual General Meeting May 13, 2009 Customer Center at Audi Forum Neckarsulm Interim Financial Report July 31, 2009 Quarterly Report, 3rd quarter 2009 October 30, 2009

  • Page 258
    2009 Financial Calendar Quarterly Report, 1st quarter 2009 April 27, 2009 Annual General Meeting May 13, 2009 Customer Center at Audi Forum Neckarsulm Interim Financial Report July 31, 2009 Quarterly Report, 3rd quarter 2009 October 30, 2009

  • Page 259
    Vorsprung durch Technik www.audi.com AUDI AG 85045 Ingolstadt Germany Phone +49 (0)841 89-0 Fax +49 (0)841 89-32524 email [email protected] Financial Communication/ Financial Analysis I/FF-12 Phone +49 (0)841 89-40300 Fax +49 (0)841 89-30900 email [email protected] Communications I/GP Phone +49 (0)841 89...

  • Page 260
    Vorsprung durch Technik www.audi.com AUDI AG 85045 Ingolstadt Germany Phone +49 (0)841 89-0 Fax +49 (0)841 89-32524 email [email protected] Financial Communication/ Financial Analysis I/FF-12 Phone +49 (0)841 89-40300 Fax +49 (0)841 89-30900 email [email protected] Communications I/GP Phone +49 (0)841 89...

  • Page 261
    Vorsprung durch Technik www.audi.com AUDI AG 85045 Ingolstadt Germany Phone +49 (0)841 89-0 Fax +49 (0)841 89-32524 email [email protected] Financial Communication/ Financial Analysis I/FF-12 Phone +49 (0)841 89-40300 Fax +49 (0)841 89-30900 email [email protected] Communications I/GP Phone +49 (0)841 89...