Audi 2009 Annual Report Download - page 177

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REPORT ON POST-BALANCE SHEET DATE EVENTS
There were no reportable events of material significance after December 31, 2009.
REPORT ON EXPECTED DEVELOPMENTS
Anticipated development of the economic environment
General economic situation
The Audi Group estimates that the global economic recovery that began in the second half of
2009 will continue with moderate momentum in 2010. As before, growth will be strongest in
emerging Asian countries. In contrast, the economic uplift will remain subdued in most indus-
trial countries.
For example, only a modest rise in economic growth is expected in the United States in 2010.
Consumer spending will be particularly weak for the foreseeable future due to the labor market
remaining very difficult.
The economy in Western Europe, too, will display a slight upward trend in 2010. The Audi Group
expects to see only a sluggish recovery in Germany compared with the recession-scarred 2009.
Export activity should pick up along with the improvement in the global economy in 2010, with
a positive effect on growth. However, flat consumer spending will be kept depressed by the
expected rise in unemployment.
Economic activity should bounce back in most Central and Eastern European countries in 2010,
following the deep economic trough experienced in the previous year. With oil prices remaining
high, Russia is expected to enjoy more vigorous economic growth.
The robust economic upturn expected in Latin America in 2010 will be largely underpinned by
rising demand for raw materials.
The Audi Group estimates that emerging Asian countries will again post a substantial rise in
economic output in 2010. China’s economic growth should proceed at a slightly faster rate than
in the previous year. In India, too, the economy is expected to continue expanding energetically.
Japan, on the other hand, will only manage marginally positive economic growth following the
deep recession in 2009.
The car industry
Based on the slow recovery of the global economy, the Audi Group believes that global demand
for cars in 2010 will show only a minor improvement on the low prior-year level that was hit by
the crisis. Its forecast is based on falling demand for cars in Europe, which can only be offset in
part by the positive development of the other sales regions.
In view of the slightly improved economic prospects of the United States, the Audi Group also
expects a mild increase in demand for cars in 2010. Yet the anticipated total market volume of
around 11.5 million units in the United States means car sales will be far below the levels of
recent years.
In Germany, the previous year’s special boom in car sales that was driven mainly by the availabil-
ity of the government environment bonus will come to an end. The Audi Group consequently
expects to see an exceptionally sharp fall in new car registrations in Germany in 2010.
The Audi Group equally expects new car registrations to be down in other Western European
markets. The expiry of state aid programs in major car markets such as France, the UK and Italy
will translate into lower demand for new cars.
The car market in Central and Eastern European countries will remain weak in 2010. For exam-
ple, the Audi Group does not expect to see the important Russian market regain the consider-
able ground lost in the previous year.