Audi strategy focused on profitable growth and differentiation
Sustainability enshrined in management processes
New Audi models from 2026 will be all-electric – combustion engine production to end in 2033 – extensive ecosystem for electric cars under development – Audi expanding after-sales offering to include intelligent hardware and predictive service
Audi wants to be a sustainable, social, and technological leader by 2030.
The premium brand wants to offer electric vehicle customers an unparalleled onboard system with its own ecosystem. “The corporate strategy ‘Vorsprung 2030’ will ensure that Audi remains viable long into the future,” said Audi CEO Markus Duesmann. The pace of change in our society is rapidly increasing. That’s why we’re accelerating our own transformation.” A few weeks ago, Audi announced that starting in 2026, it would only launch new models on the global market that are equipped with electric drive systems. The company will gradually phase out production of its internal combustion engines between now and 2033. This clear decision was the result of an intensive strategy process with the ambition to continue to grow profitably.
In order to continue living up to Audi’s “Vorsprung durch Technik” (“Progress through Technology”) slogan in the future, the Board of Management spent the past few months formulating the company’s new “Vorsprung 2030” strategy. With a firm date now set for the company’s transition to e-mobility, the brand with the four rings is resolutely tackling its transformation. Audi embraces its role as a pioneer and driver of innovation in the automotive industry. “‘Vorsprung durch Technik’ remains necessary because we can only solve many of the world’s major problems, such as carbon emissions and global warming, through the use of clean technologies. We view ourselves as a company that guarantees the freedom and individual mobility of our customers,” emphasized Duesmann. That is why Audi is focusing on zero-emission drive systems. “We don’t simply develop technology for its own sake. It must be consequential and effective in keeping the world moving.”
Speaking at the “Corporate & Business” theme day during the Audi Media Days event in the run-up to IAA 2021, the CEO will be taking questions from the international press on September 1, 2021, including: What is Audi’s vision? How will the company change in the coming months and years in order to continue to drive technological progress and position itself for the future? What is the company doing to implement additional internal processes that promote further innovation? And what innovations and products can customers look forward to in the coming years?
Development of the new “Vorsprung 2030” strategy “Vorsprung durch Technik” has defined Audi’s DNA for 50 years. To ensure that this doesn’t change, Audi’s chief strategist Silja Pieh and her team developed a new process for creating a sustainable and forward-looking corporate strategy. Together with around 500 Audi employees from across hierarchical levels and from major markets such as China and the United States, she spent months analyzing more than 600 global trends in the mobility sector through 2030 that could become relevant to the company. This resulted in strategic areas of activity which the team discussed and evaluated in-depth together with the Board of Management. Some of the insights are obvious – sales and profits will gradually shift, for example, initially from vehicles with combustion engines to electric cars, and later, when autonomous driving offers additional growth potential, to software and services.
“One thing our entire team finds extremely encouraging is that many employees and the Board of Management are already deeply committed to the issue of sustainability. We want to further emphasize responsible business practices in the future and rigorously adhere to them,” explained Pieh. The new strategy focuses on profitable growth and differentiation – and provides guidelines for prioritizing strategic areas of activity. This involves a number of different components, such as employee training, the corporate culture, and a new corporate management system all working in tandem.
In addition to the plan to phase out the internal combustion engine, more strongly differentiating Audi’s all-electric vehicles from the competition through quality and design as well as increasing the added value for customers play an important role. This includes a seamless ecosystem for electric and autonomous driving. As of result of the changes, Audi will be in closer and more frequent contact with their customers in the future, with new digital and physical offerings,” says John Newman, head of digitalization at Audi.
Audi will also more closely align business success with sustainable activities on the basis of environmental, social, and governance (ESG) criteria. These criteria include climate change mitigation and the protection of finite resources, occupational health and safety, social responsibility, and corporate governance practices related to compliance and risk management. Pieh points out that the strategy process isn’t finished, but is instead an ongoing development process: “The world and especially the transportation sector are rapidly evolving. We will respond to changes even more quickly and with greater flexibility in the future.” As part of the group’s integrated planning process, Audi will regularly analyze and, if necessary, refine its strategic framework.
The automaker wants to prove that it is indeed possible to reconcile premium individual mobility and an uncompromising commitment to sustainability. Together with the Volkswagen Group and its other brands, Audi intends to play a leading role in the new mobility world. In its transformation toward e-mobility and software, the group’s concentrated creative power represents a decisive competitive advantage. In July, the Volkswagen Group redefined its priorities with its NEW AUTO strategy, which clearly supports the successful implementation of “Vorsprung 2030.”
Martin Primus, General Secretary of AUDI AG, believes the advantage of this strategic vision is that it allows all of the company’s employees to focus on the upcoming challenges – both within the brand and across the entire brand group with Bentley, Lamborghini, Ducati, and Italdesign. Setting this course early on gives the Audi team the necessary clarity and sufficient time to complete the transformation. A restructured, strong foundation will facilitate its implementation financially, organizationally, and in terms of human resources.
New ideas for the future – innovations at Audi Audi space frame, quattro, matrix LED headlights, and numerous patents related to e-mobility – the list of Audi innovations is long, and will become even longer in the future. Oliver Hoffmann, Member of the Board of Management for Technical Development at Audi, knows that the coming years will bring further highlights. “In the age of new mobility, we not only define “Vorsprung” as world-class engineering, state-of-the-art design, and a captivating digital experience. We don’t just think in terms of vehicles. In the future, the focus will increasingly be on holistic mobility solutions, including the surrounding infrastructure,” he explained.
Through the “Audi DNA” project, the new Head of Development intends to place a strong focus on innovations that customers can experience. In this context, the company is taking a deep dive into technical details such as steering angle requirements, hand torque, and acoustics in order to develop a one-of-a-kind Audi feel for its customers. “We need to give our products a clear, unmistakable DNA. In the future, we will be very explicit in our definition of what driving an Audi should feel like. This also applies to highly automated driving, by the way,” Hoffmann noted.
Like the entire company, Technical Development is undergoing the greatest transformation in its history – the most challenging decade in the automotive industry lies ahead. This includes the steadily increasing focus on software in the vehicles and autonomous driving. Alongside e-mobility, focal points of the Volkswagen Group’s strategy include enhancing connectivity, digital services, and expanding the use of internally programmed systems.
In the future, customers will be able to upgrade their vehicles and update or install subsystems as needed. Owners of vehicles with combustion engines in various countries will also receive exceptional service over their entire life cycle. “Our vehicles will be even more customer-centric, individualized, and sustainable thanks to intelligent hardware offered through our after-sales business,” said Hoffmann, explaining the decision.
In the new 2030 strategy, CARIAD plays an important role. The group’s software arm will develop a scalable software platform with a standardized operating system and cloud connectivity for all Volkswagen Group brands by 2025. “The E3 2.0 software platform will serve as the enabler of the synergies and innovations of the future, including autonomous driving,” explained Duesmann. While CARIAD is responsible for the technical implementation of software-based solutions, integrating them into the vehicle will be carried out by the respective brands in coordination with CARIAD.
Jürgen Rittersberger, Member of the Board of Management for Finance and Legal Affairs, explained at the Audi Media Days event just how he intends to lay the financial foundation to drive innovation within the Audi Group. “Here at Audi, there’s a specific mindset behind each and every technical innovation: we want to think holistically and always keep the societal and social context in mind.” To ensure that innovations remain affordable, the company continues to optimize its processes and costs. “In order to tackle a transformation such as the one Audi is currently undergoing, we must and indeed will free up the appropriate financial resources. This is the only way to ensure that we remain competitive and viable over the long term,” declared Rittersberger. In addition to results-driven volume management and strong operating performance, leveraging hardware and software synergies within the Volkswagen Group plays a key role in the company’s success. The first half of 2021 has shown that Audi is on the right track – a record number of vehicles shipped and significant volume growth in battery-electric vehicles prove that the brand with the four rings is committed to sustainable and profitable mobility.
Through its Berlin-based innovation unit Denkwerkstatt, Audi has been developing new ideas for the future for around five years. In the meantime, Audi Denkwerkstatt is widely recognized as one of the leading innovation units operated by a German company, and with its start-up atmosphere, is a “speedboat” used by Audi to develop innovative business models in agile teams. In addition, Audi’s intrapreneurship program sees employees from various divisions develop business ideas in just a few weeks. At the end of each stage, a jury of experts evaluates whether a project should be continued or stopped on the basis of predefined criteria. “Our goal is to quickly transform new ideas into customer-relevant innovations. Audi Denkwerkstatt plays a major role in this process,” emphasized Hoffmann.
At the same time, Audi is aggressively working on efficient manufacturing processes and smart technologies in production. In the Audi Production Lab, for example, the company is driving the development of cutting-edge manufacturing solutions. To this end, the team draws on a network of institutes, start-ups, and global suppliers – and above all else, relies on the expertise and creativity of its employees. Meanwhile, the Audi site in Neckarsulm plays a pivotal role as a pilot factory and real-world laboratory for the digital transformation. IT solutions and input from technology partners such as Amazon Web Services, SAP, and Capgemini are being incorporated into the Industry 4.0 project to create a fully connected factory here.
Audi in China The Chinese market will continue to play an important role in the company’s new strategic alignment. Audi estimates that the market for premium vehicles here will grow to 4.5 million units annually by 2030 – in 2020, this figure stood at 3.1 million vehicles. Furthermore, electric vehicles’ share of this total could increase from 10 percent today to as much as 40 percent by the end of the decade.
As such, it is only logical for Audi to continue expanding its business in China. This includes increasing the supply of electric cars produced locally. Through its activities, Audi is helping drive the Chinese automotive industry’s shift toward sustainable mobility. The headquarters of the joint venture between FAW and Volkswagen is located in Changchun, where Audi has been manufacturing automobiles for over 30 years – in addition to other locations in China. Together with FAW, the company will expand its locally produced product range to twelve models by the end of 2021. The first products from the collaboration with Audi’s second Chinese partner SAIC Volkswagen will be launched in 2022. These will also be sold through the existing dealer investor network operated by FAW-Volkswagen Audi.
“Our approach here is based on the idea of ‘In China for China,’ and as such, Audi is focusing on the specific needs of customers in the world’s largest automotive market and actively driving innovation,” said Werner Eichhorn, president of Audi China. “Together with our two partners FAW and SAIC, we are well prepared for the challenges of the future.” To date, Audi has shipped a total of more than 7 million vehicles in the Chinese market, selling 727,358 vehicles in China in 2020 alone. In the first half of 2021, this figure stood at 418,749 vehicles.
First Japanese carmaker to join the United Nations-backed campaign
Nissan, electric mobility pioneer, signs Business Ambition Pledge for 1.5⁰C
Nissan joins the Science Based Targets initiative
Nissan has announced that it has joined the Race to Zero campaign supported by the United Nations, accelerating the company’s full electrification and carbon neutrality goals.
Nissan is the first Japanese automaker to join the campaign.
Nissan also signed the campaign’s Business Ambition for 1.5°C commitment, aligning Nissan with the goal to keep global temperature rise to 1.5°C above pre-industrial levels. Nissan has joined the Science Based Targets initiative (SBTi), a requirement for participation in the campaign. Nissan’s well below 2°C carbon reduction targets have been validated by the SBTi, ensuring that they are aligned to climate science.
“Through joining the SBTi and participating in these campaigns, we are renewing our determination to work with like-minded companies and local governments around the world to solve the challenges of climate change and realize a sustainable society,” said Nissan President and CEO Makoto Uchida.
“To accelerate global efforts to achieve carbon neutrality, Nissan will continue to address various issues in a responsible manner, including further promotion of electrification. Also at Nissan we are determined to fulfil our role as a company that will continue to be needed by our stakeholders in the future.”
In 2010, Nissan launched the LEAF, the world’s first mass-market electric vehicle, and, through new all-electric vehicles and electrified technologies rolling out across the globe, continues to bring innovation and excitement to zero emissions driving and zero emissions power.
Earlier this year Nissan pledged to achieve carbon neutrality across its operations and the life cycle of its products by 2050. Nissan is looking to accelerate these efforts through initiatives like Nissan EV36Zero – the new manufacturing blueprint combining electric vehicle production, battery manufacturing and renewable energy generation.
Alberto Carrillo Pineda, Managing Director and Co-Founder, SBTi said: “Bold and urgent action is needed to limit the worst effects of climate breakdown and unlock a sustainable future for us all. As the first Japanese automaker to commit to the Business Ambition for 1.5°C campaign, Nissan is joining more than 700 companies worldwide in working towards the most ambitious and robust science-based emissions reduction targets.
“By aligning with climate science, Nissan is making a clear declaration that it is ready and willing to play its part in achieving the Paris Agreement. All other companies worldwide must take immediate action to increase their climate ambitions and support the global economy to significantly reduce emissions and achieve net-zero before 2050.”
COP26 President Designate Alok Sharma said: “It is fantastic to see Nissan join the Race to Zero. They are the first Japanese vehicle manufacturer to sign up and through their manufacturing of batteries in North East England for electric cars, are demonstrating real leadership in the transition to net zero across the UK.
NISSAN PRIVILEDGED AND CONFIDENTIAL [1] “By joining the Race to Zero, Nissan is now part of the largest global alliance of companies, cities, investors, regions and universities committed to working together towards halving global emissions by 2030 and achieving net zero emissions by 2050 at the very latest.
“COP26, the UN climate change summit the UK is hosting in Glasgow this November, is a turning point. We must keep the goal of limiting the average temperature rise to 1.5C alive by taking decisive action and coming forward with long-term strategies for a pathway to net zero by the middle of the century.”
Central to Nissan’s carbon neutrality plans is its rollout of electrified vehicles and technologies. This began in 2010 and continues today with the expansion of Nissan’s unique e-POWER technology and new fully electric vehicles such as the Nissan Ariya crossover. Nissan is aiming for 100% of its all-new vehicle offerings to be electrified in the key markets of Japan, China, the United States and Europe by the early 2030s.
Earlier this year Nissan announced its long-term commitment to the ABB FIA Formula E World Championship racing through to the end of season twelve 2025-2026, bringing the excitement and fun of zero-emission electric vehicles to a global audience.
To accelerate this journey, Nissan recently unveiled Nissan EV36Zero, a blueprint for the future of the automotive industry. Demonstrating the company’s 360-degree approach to zero-emissions, a new £1bn flagship Electric Vehicle (EV) Hub in the UK is bringing together electric vehicles, renewable energy and battery production, to supercharge the drive to carbon neutrality.
Further to the development of new vehicles and technologies, Nissan will continue its work with partners globally in innovating and developing the electric ecosystem around EVs, covering renewable energy generation, energy storage, 2nd life uses for EV batteries and continued development of the ‘4R’ business model – Reuse, Refabricate, Resell, Recycle – for the benefit of communities.
A rare 1976 Lotus Esprit Series 1 restored by the TV show, Salvage Hunters: Classic Cars is due to be auctioned Car & Classic’s online-only platform next week
Freshly restored and not yet fully run in, the winning bidder has the option to take delivery of the car on the leading enthusiast car programme
One of 15 right-hand drive examples to leave the Hethel factory in Colorado Orange, presenting duo Paul Cowland and Drew Pritchard have worked with leading restorers to keep the Esprit’s original specification including its bright tartan interior
Its original engine and gearbox have all been refreshed, with the car having done less than 500 miles since its in-depth restoration
Salvage Hunters: Classic Cars is now in its 6th series and has worked with Car & Classic previously to auction its rebuilt, low-mileage Citroën DS 21 earlier this year
Auction starts at 5pm BST on 3rd September, running for seven days online
Car & Classic is offering the ultimate Lotus for enthusiasts of the brand, as it brings a 1976 Lotus Esprit Series 1 restored by Salvage Hunters:
Classic Cars to its online-only auction site this week; and provides the winning bidder the chance to be on the TV show to collect it. Finished in rare original factory colour combination of Colorado Orange with a striking Seventies tartan interior, the restoration was initiated by Lotus enthusiast, Matthew Oxley, and was finally completed under the guidance of Salvage Hunters: Classic Cars’ Paul Cowland and Drew Pritchard with support from other key specialists.
The Lotus Esprit is one of the most iconic models from the well-known British sportscar manufacturer. A hit with James Bond and appearing in other films such as Basic Instinct and Pretty Woman, this Lotus Esprit is the latest screen star, to be broadcast on Quest in early 2022 and available on Discovery+, as the latest project the renowned Salvage Hunters: Classic Cars team has embarked upon.
It is now available to buy, via online auction on Car & Classic, direct from the production team, with the option for the winning bidder to take delivery of their new Lotus on the TV show. The early Lotus Esprit Series 1 found its way to Salvage Hunters: Classic Cars in an unorthodox way as it was delivered by its previous owner, Lotus enthusiast and skilled mechanic Matthew Oxley, as a box of bits. Matthew, who started the restoration and had completed a suspension and engine rebuild, sold this special early Lotus Esprit direct to the Salvage Hunters: Classic Cars team to put it back together, piece by piece.
With any fresh, body-off restoration, especially one that was essentially in boxes, they looked at what they had, what had already been restored and what needed work. Starting with the body, which was in excellent condition and free of the typical stress cracks and trapped moisture that can affect glass fibre, they handed it over to SMS Autospray, specialists in fibreglass work, who expertly repainted the car in its original colour. The factory finish was assured thanks to the team carefully applying all original-specification Esprit decals along with the Lotus badges and plaques. It even created reproductions of the number plates in the original style at the time of construction.
For its incredible tartan interior, Salvage Hunters: Classic Cars turned to none other than Steve Fulcher of Fulcher Coach trimmers to help recreate the exacting and desirable period look and feel. Trimmed in a stunning orange with green and red tartan, the interior of this Lotus Esprit Series 1 looks impeccable and fitting of a late-Seventies car.
Adding to Matthew Oxley’s work on the engine and suspension, the Salvage Hunters: Classic Cars presenters asked Matthew to continue where he left off and he painstakingly restored the five-speed manual gearbox to factory-correct specification. Having done less than the 500 miles of ‘run in’ on the engine and transmission, Matthew has said that he would be able to be on hand to help the new owner to ensure the running in goes smoothly and that any adjustments or changes are done correctly, too.
Chris Pollitt, head of editorial at Car & Classic said: “We rarely see such beautifully restored vehicles to their original specification. This is perhaps one of – if not, the finest examples of the Lotus Esprit Series 1 available to purchase. The time, effort and money that has gone into this vehicle restoration is truly incredible, so much so that that it could be part of a museum exhibition! We are very excited for its new owner, whoever they may be and hope to see them collect the car on the Salvage Hunters: Classic Cars TV show.”
The online-only auction for the Salvage Hunters: Classic Cars Lotus Esprit Series 1 starts on 3rd September at 5pm (BST) and ends 10th September at 5pm (BST).
The UK’s most and least reliable new and used cars have been revealed in the 2021 What Car?
Reliability Survey from Britain’s leading new car buying platform and consumer champion. Feedback from more than 16,000 car owners was analysed to find the country’s most dependable 178 models and 30 brands, from nearly new cars to those aged up to five years old.
This year, a record six models achieved a score of 100%: the current versions of the Audi TT, Mazda CX-3, Mini Convertible and Mitsubishi Eclipse Cross, and the previous-generation Dacia Sandero and Honda HR-V.
At brand level, Lexus and Dacia models were hailed as the most dependable for new and used buyers, while Fiat and Land Rover achieved the lowest scores.
Lexus gained an overall rating of 98.7% and none of its vehicles scored lower than 98.4%. Budget brand Dacia also impressed with a 97.3% overall rating, demonstrating that you don’t have to break the bank to buy a dependable model.
In contrast, Fiat had the least reliable cars, gaining an 82.0% rating from owners, while Land Rover and Ford were second and third worst for reliability.
Hybrids were rated as the most durable type of car, with an average class reliability score of 96.9%. The best performing hybrid was the Lexus NX (2014 – present), which managed a 99.8% score, while hybrid variants of the BMW X5 (2018 – present) were rated least reliable, with 89.7%.
Luxury SUVs performed the worst in the study, achieving an average class rating of 88.8%, although the Porsche Macan (2014 – present) bucked the trend, managing a creditable 97.9%. The Land Rover Discovery (2017 – present) received the lowest score in this class with a 72.1% result.
Owners were asked whether their car had gone wrong in the past 12 months, how long repairs took and how much they cost, with the overall score expressed as a percentage.
Of the 16,328 drivers surveyed, 20% had experienced a fault with their car in the past year, with 85% of faults repaired free of charge. For 7% of drivers, the repairs cost between £101 and £500, while 2% had to pay more than £1500 to get their car back on the road.
A third of cars remained driveable and were fixed within a day, while 25% could be driven but took more than a week to repair.
What Car? editor Steve Huntingford said: “The UK’s used car market is currently booming, making it all the more important that people know which models will be reliable. With feedback from more than 16,000 owners, the latest What Car? Reliability Survey highlights the brands and models with the best and worst records.
“Our latest study also shows that a high price tag isn’t always a guarantee of reliability, because some of Britain’s cheapest cars are among the most reliable.”
Top 10 most reliable brands(cars up to five years old)
PEUGEOT has launched the new e-Boxer van in the UK, the brand’s largest, fully electric Light Commercial Vehicle (LCV).
Soon to be available in selected showrooms, the new e-Boxer continues PEUGEOT’s electrification strategy, with the brand set to offer an electric variant across its entire LCV range by the end of 2021.
The new e-Boxer joins the award-winning e-Expert in the PEUGEOT e-LCV range, which will be fully complete later this year with the UK arrival of the new e-Partner. PEUGEOT is set to offer an electrified variant across its entire range of passenger and commercial vehicles by 2025, offering fleets and business users a choice of vans to meet all their requirements.
The PEUGEOT e-Boxer is available exclusively in ‘Professional’ trim, and comes in three different body styles; Panel Van, Window Van, and Chassis Cab. The PEUGEOT e-Boxer also comes in three lengths: L2 (5,413mm), L3 (5,998mm) and L4 (6,363mm). With the battery located underneath the floor of the vehicle, there is no compromise on practicality, as the e-Boxer comes with a 15m3 maximum load volume, 1,150kg maximum payload and up to 1.87m internal width on Panel Van versions.
The new PEUGEOT e-Boxer comes with a choice of two battery capacities, depending on the size of the vehicle. L2 variants feature a 37kWh unit, while L3 and L4 versions come with a larger, 70kWh battery. Both lithium-ion batteries are connected to a 90kW electric motor producing 350Nm of torque. With its all-electric powertrain, the PEUGEOT e-Boxer is exempt from current congestion charge or Ultra Low Emissions Zone (ULEZ) payments, adding another benefit for businesses and fleets.
With the 37kWh battery, the e-Boxer is capable of travelling up to 73 miles on a single charge (WLTP), while the 70kWh battery increases the van’s range to 139 miles (WLTP). All PEUGEOT e-Boxer vehicles come with a certificate of battery capacity after each service to give owners peace of mind, with the lithium-ion battery guaranteed by an eight-year/100,000-miles warranty for 70% of its original charge capacity.
All PEUGEOT e-Boxer models come standard with a 22kW Mode 3 Type 2 Charging Cable that is compatible with both single and three phase wallboxes. A full charge using a 7.4kW single phase wallbox can be achieved in six hours on 37kWh variants and in 12 hours on 70kWh models. The e-Boxer also supports 50kW rapid charging, allowing a 0-80% charge in just one hour.
The new PEUGEOT e-Boxer comes standard with a 5-inch capacitive colour touchscreen, Bluetooth®, DAB radio and satellite navigation, while the interior rear-view mirror features a display that relays key vehicle information to the driver. All PEUGEOT customers buying a new full electric or plug-in hybrid vehicle are also eligible for a six-month free subscription to BP Pulse – the UK’s largest public charging network.
Prices for the new PEUGEOT e-Boxer start from £49,335 (excluding VAT, after Plug-in Van Grant).
