Audi CEO Says German Carmaker to Reach 2012 Goals

Audi AG is the 2nd largest luxury car-maker in the world and company expressed hopes that it can reach the goal of retailing record number of almost 1.4 million vehicles in the year 2012. The company is expecting to maintain the momentum for the next year.

Rupert Stadler, Chief Executive Officer for European operations told that they are successfully running the business in the European markets by keeping pace with latest market trends. Luxury automakers like Bayerische Motoren Werke and Audi have introduced price cuts in order to maintain the sales during the market slowdown without hurting the profitability. The 9-month operating profit at the company’s unit of Volkswagen has narrowed to almost 11.1 5 in terms of sales from 12.1% for the year 2011, while all the deliveries jumped to almost 8.8%.

The company is also planning to start a manufacturing unit in San Jose Chiapa in the year 2013. It follows the strategy of German competitors like Daimler AG and BMW.

Until 3 years ago, the company produced almost 75% of its vehicles in Germany, focusing completely on increasing the quality and expanding the complete model line-up for including the A1 subcompact, Q5 sport-utility vehicle, and A7 4-door luxury coupe.

Mercedes and BMW, in contrast, have got long-established companies in US, South Africa, and China.

International Targets

By the year 2017, Audi’s domestic manufacturing share value is projected to come down to 45%, while the annual production of the vehicles to double-up to 1.9 million, largely in cities likes Mexico and China.

San Jose Chiapa plant is expected to begin in the year 2016 and it has total capability of producing almost 150,000 units per year.

The site is also expanded to produce other SUVs for Audi along with the existing Q5. Audi sells almost half of the cars in US and it has target deliveries of 59% from last year to almost 2 Lakh vehicles by the end of 2018.

Global sales of Audi SUV rose from 13-percent to 1.2-million vehicles. Audi is expanding their plant in Gyor with an estimation of 900 million Euros. The annual production capacity is tripled to 125,000 cars by the end of 2013.

Audi is planning to release new A3 compact for the year 2013 in the new Foshan factory, with the joint venture of China FAW Group Corp. Audi is second in the country with annual boost of 40% to 700,000 vehicles.

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