Audi 2012 Annual Report Download - page 159

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PROCUREMENT
A long-term partnership with top-performing suppliers worldwide is a key aim for Audi Group
Procurement. Alongside overall economic efficiency, our supplier partnerships depend on a range
of criteria such as quality, innovativeness and reliability. In order to maximize any synergy poten-
tial, the selection process is handled in consultation with Volkswagen Group Procurement.
The cost of materials for the Audi Group came to EUR 30,265 (28,594) million in the 2012 fiscal
year, thus representing the largest single component of the cost of sales.
The gradual expansion of the Audi product range will lend further strategic importance to pro-
curement activities. This fact, along with the high complexity of supply chains, prompted the
further intensification of purchased parts and supplier management in the past fiscal year. To-
gether, tool and process experts from the procurement and quality assurance areas make sure
that the necessary capacity is available and that the required quality standards are maintained
to ensure the successful start of production of new models and a reliable parts supply for the
Audi production network.
Sustainability is a core consideration within our Company’s procurement activities, and at the
very heart of the principles we apply. In addition to cost savings, non-economic aspects such as
the use of recyclable materials are also part of the equation. We expect all suppliers and business
partners to uphold environmental and social standards both for themselves and within their
supply chain, in order to reflect the Audi Group’s high benchmark for entrepreneurial responsi-
bility. The involvement of suppliers in the product development process from an early stage also
enables us to find ways of reducing the amount of materials used or of using alternative
materials.
PRODUCTION
The 2012 fiscal year saw the Audi Group increase car production to 1,469,205 (1,302,981) vehicles,
on the back of a positive trend in demand. This figure includes 333,465 (216,053) vehicles of the
Audi brand made by the Chinese joint venture FAW-Volkswagen Automotive Company, Ltd. in
Changchun (China). Overall, 1,467,008 (1,301,270) Audi vehicles and 2,197 (1,711) supercars of
the Lamborghini brand were produced.
Since the acquisition of DUCATI MOTOR HOLDING S.P.A., Bologna (Italy), and its subsidiaries, the
Ducati brand has built 15,734 motorcycles. Motorcycle production over the full year totaled
43,992 (42,177) units.