Audi 2010 Annual Report Download - page 145

143
Management Report
132 Audi Group
141 Business and underlying
situation
141 Economic environment
143 Research and development
147 Procurement
148 Production
150 Deliveries and distribution
156 Financial performance
indicators
159 Social and ecological aspects
173 Risks, opportunities
and outlook
183 Disclaimer
Management’s overall assessment
Against the backdrop of the global economy’s unexpectedly swift recovery from the consequences
of the financial and economic crisis, along with the resulting upturn in numerous car markets,
the Audi Group operated very successfully in the past fiscal year.
The Audi Group sold 1,092,411 Audi models, the highest deliveries total in the history of the
Company. As well as the positive development in overall market demand, the substantial growth
in vehicle deliveries by 15.0 percent is mainly down to the attractive product range, to which
numerous sporty and efficient models were again added.
Furthermore, the long-term corporate policy again paid dividends because it focuses on steadily
improving processes and cost structures along the entire value chain, and therefore on progres-
sively optimizing productivity.
The Company’s success in 2010 is reflected in the operating profit of EUR 3,340 million and an
operating return on sales of 9.4 percent. These outstanding key financial indicators mean that
last year the Audi Group was one of the most profitable businesses in the automotive industry
worldwide.
RESEARCH AND DEVELOPMENT
The Audi brand is strongly associated with the development of progressive technological concepts
through its declared mission statement of “Vorsprung durch Technik.” The Company again brought
a large number of innovations to production maturity in the past fiscal year.
An average total of 6,987 (6,599) people were employed in the Research and Development
area of the Audi Group in 2010. This total comprised 6,365 (6,308) at AUDI AG, 134 (126) at
AUDI HUNGARIA MOTOR Kft. Győr (Hungary), and 187 (165) at Automobili Lamborghini S.p.A.,
Sant’Agata Bolognese (Italy), as well as 274 at Italdesign Giugiaro S.p.A., Turin (Italy).
RESEARCH AND DEVELOPMENT EXPENDITURE RECOGNIZED AS AN EXPENSE
EUR million 2010 2009
Research expense and non-capitalized development costs 1,901 1,569
Impairment losses (reversals) on capitalized development costs 567 480
Total 2,469 2,050
Technical innovations
30 years of quattro
The Audi brand’s quattro technology celebrated its 30th anniversary in 2010. Since the unveiling
of the first Audi quattro in 1980, the Company has built around 3,700,000 vehicles with perma-
nent all-wheel drive.
By distributing the propulsive power among all four wheels, a vehicle with quattro drive can
generate a higher cornering force at each wheel than rear-wheel-drive or front-wheel-drive
vehicles, and thus produce better traction and superior cornering behavior. As well as evoking
technological expertise, the term quattro encapsulates emotion and a dynamic driving feel,
serving to combine superlative sports performance with a high degree of everyday suitability.
The Audi brand has steadily increased its technology lead in the domain of all-wheel drive over
the past 30 years. At the 2010 Geneva Motor Show the Company presented a further evolutionary
stage – quattro drive with crown gear center differential and torque vectoring. This technology,
making its first appearance in the RS 5 Coupé, is even more efficient, effective and precise.