CEO Markus Duesmann: “We are on the verge of the biggest product initiative in our history”

CEO Markus Duesmann: “We are on the verge of the biggest product initiative in our history”

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Ingolstadt, March 27, 2023 – AUDI AG’s Annual Media Conference saw CEO Markus Duesmann and CFO Jürgen Rittersberger address current topics. Alongside the key financials for the 2022 fiscal year, the pair focused on strategic decision-making, spotlighting holistic sustainability, and the upcoming model initiative. The key statements at a glance:

On the year 2022 and the annual financial statements …

Markus Duesmann: “Even here in Germany, we are feeling the impact of the Russian war of aggression against Ukraine quite directly – primarily due to energy shortages, supply bottlenecks and the challenging geopolitical situation. In view of this volatile environment, we can be particularly proud of what we achieved last year. This result required lots of hard work and collaborative efforts.”

Jürgen Rittersberger: “We responded to the challenges of 2022 consistently and by taking active countermeasures. These factors and the great dedication of our entire team have made it possible to announce a strong financial performance.”

Jürgen Rittersberger: “Our operating profit stood at a record 7.6 billion euros. Operating return on sales reached a strong 12.2 percent. All this shows that we navigated the turbulent year of 2022 well and consistently made the most of opportunities. The same goes for our strong net cash flow, which hit the second-highest level in our company’s history.”

Jürgen Rittersberger: “2022 was an impressive demonstration of just how robust and profitable our Brand Group of Audi, Bentley, Lamborghini and Ducati really is.”

On the product portfolio and the upcoming model initiative …

Markus Duesmann: “Sales of all-electric models increased by 44 percent year on year. The high demand for our Audi Q4 e-tron, Audi e-tron GT and Audi e-tron models confirms that we are on the right track toward e-mobility.”

Markus Duesmann: “We are on the verge of the biggest product initiative in our history. By 2025, we will have launched around 20 new models, more than 10 of which will be all-electric. We have set the course to go 100% electric. By 2027, we seek to offer an all-electric vehicle in each core segment. We recently decided to launch an additional electric entry-level model below the Audi Q4 e-tron as well.”

Markus Duesmann: “The upcoming Audi Q6 e-tron model series is the first to be based on the new Premium Platform Electric. With it, e-mobility is coming from Ingolstadt for the first time.”

On holistic sustainability …

Markus Duesmann: “To make sure we are in a viable position in such a different environment going forward, we will also be adapting our organizational structure. By consolidating key topics such as ESG, digitalization and new business models in the CEO’s division, we are lending them even greater weight.”

Markus Duesmann: “We are acutely aware of our responsibility in dealing with resources. That’s why the circular economy plays such an important role for us. In the future, we will recycle secondary materials from end-of-life vehicles back into the production of our cars. As part of our MaterialLoop pilot project, we are working with suppliers, recycling companies and academic partners to upskill in this area.”

Jürgen Rittersberger: “At Audi, ESG goes beyond the product. We are convinced that a sustainable business model includes not only environmental considerations but also social responsibility. We have our performance measured by an independent rating agency based on strict criteria.”

On the outlook for 2023 …

Jürgen Rittersberger: “We have again set ambitious annual goals for 2023, even as general conditions will remain challenging.”

Markus Duesmann: “Demand for e-mobility remains high. In January and February 2023, our sales of all-electric vehicles worldwide were up almost 40% compared to the same months last year. February also marked the launch of the Q8 e-tron in most European countries. We have some 20,000 pre-orders on the books, confirming that demand for sustainable electric mobility is booming.”