Audi 2015 Annual Report Download - page 186

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON EXPECTED DEVELOPMENTS
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REPORT ON EXPECTED
DEVELOPMENTS
/ANTICIPATED DEVELOPMENT OF THE
ECONOMIC ENVIRONMENT
// GENERAL ECONOMIC SITUATION
The forecasts regarding the overall economic situation are based
on assumptions derived from the current assessments of exter-
nal institutions. These include economic research institutes,
banks, consultancy firms and multinational organizations.
We at the Audi Group expect 2016 to bring slightly stronger
growth in the global economy than the previous year. Economic
activity should increase slightly in most industrial nations. The
vast majority of the emerging markets – especially in the region
of Asia – should continue to grow at higher rates than the
industrialized countries. However, growth is not expected to
regain the comparatively high levels of earlier years. Geopolitical
tensions and the development in prices on financial and com-
modity markets could adversely affect the global economy.
In Western Europe, economic recovery should continue in 2016.
Its development, however, remains dependent on how effec-
tively structural problems in a large number of countries can
be overcome.
The German economy should likewise continue to grow, with
positive consumer confidence and continuing high employ-
ment providing crucial support.
For Central Europe, we expect economic development again to
be positive. Assuming the conflict between Russia and Ukraine
does not escalate further, economic conditions in Eastern
Europe should stabilize. The Russian economy’s growth is
expected to remain negative, although not as acutely so.
In the United States, despite the new stance of the Federal
Reserve on interest rates, we expect solid economic growth to
continue. Alongside consumer and public spending, corporate
investment should also provide increasing economic stimulus.
The economy of Brazil is likely to remain in recession in 2016.
We expect the Asia-Pacific region to enjoy the most dynamic
economic development over the coming year. The Chinese
economy is one of its driving forces. It should continue to
achieve a high level of growth in international terms, even if
the rate of expansion will be much lower than in recent years.
Japan should experience slight economic growth in 2016.
// CAR MARKET
The Audi Group estimates that global car markets will show
only slight growth in 2016. Patterns of demand are likely to
develop differently from region to region.
Registrations of new passenger cars in Western Europe should
reach roughly the level of the previous year. We also expect
demand for automobiles in Germany to be largely unchanged
from the previous year.
In Central Europe, new registrations of passenger cars
should show slight growth in 2016, in particular thanks to
the economy’s robust development. By contrast, the car mar-
ket in Eastern Europe is likely to continue to contract. However,
we expect the significant downward trend of 2015 to slow
down.
REPORT ON EXPECTED DEVELOPMENTS,
RISKS AND OPPORTUNITIES
Both the global economy and global demand for cars should continue to
expand in 2016. The Audi Group is expected to be able to maintain its course
of growth despite an intensely competitive environment. Numerous capital
investments are strengthening the company’s future viability.