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“Our financial performance in the first six months of 2022 shows just how strong and profitable our brand group is. Despite the challenging economic and geopolitical environment, we were able to increase revenue and returns significantly,” says Markus Duesmann, Chairman of the Board of Management of AUDI AG. “At the same time, the current situation in the world makes it clear that economies and society need to move away from fossil fuels even quicker. Expanding renewable energies and switching to e-mobility are important steps in this direction. That’s why we’re on the right track with our strategic focus on e-mobility and carbon-neutral production.”

Significant Growth in Deliveries of Electric Vehicles and Luxury Brands

Against the backdrop of the challenging supply situation, the Premium brand group delivered 797,587 cars to customers in the first six months (2021: 986,567). Compared to record deliveries in the first half of 2021, deliveries of Audi brand automobiles fell by 20% to 785,099 (2021: 981,681). Demand remained strong despite the ongoing semiconductor crisis and COVID-19-related lockdowns in China.

However, Ducati delivered 33,265 (2021: 34,515) motorcycles. The decline of 3.6% compared to the strong previous year reflects semiconductor availability. With 5,090 (2021: 4,852) vehicles delivered, Lamborghini recorded an increase of 4.9%, while the British brand Bentley – the newest member of the brand group – sold 7,398 (2021: 7,199)* vehicles.

Audi Continues to Implement its Electrification Strategy

The Audi brand increased the number of all-electric vehicles delivered to 50,033 (2021: 32,775) – an increase of 52.7% over the previous year. The Audi e-tron remained particularly popular with customers but the Audi Q4 e-tron recorded the highest growth. Against this backdrop, the share of all-electric vehicles delivered by the brand group increased to 6.3%.

With the successful rollout of the Audi charging hub, Audi is showcasing a solution for fast and uncomplicated electric vehicle charging in urban areas.The feedback from customers on the launch of the pilot site in Nuremberg is extremely positive, with a hub in Salzburg and other locations to follow in the course of 2022,” says Hildegard Wortmann, Member of the Board of Management for Sales and Marketing. Three additional sites in German metropolises will help meet the increased charging demands in urban spaces starting in 2023. Moreover, Audi is planning to open even more sites in German cities by mid-2024. Another milestone in the electrification strategy was the cornerstone laid for the smart factory for electric models at the Changchun site at the end of June. Following completion at the end of 2024, models based on Premium Platform Electric (PPE) will be rolled off the line for the Chinese market via sustainable and digitally connected production. The 150-hectare plant will have an annual production capacity of more than 150,000 vehicles.

Revenues Increased

In the first six months of the year, the Audi Group generated revenues of €29,869 (2021: 29,212) million. Despite declining sales figures, the brand group was able to increase its revenue by two percent. This growth was mainly due to the first consolidation of the luxury brand Bentley since January 1,2022. The Group succeeded in further improving its already strong price position thanks to the high demand for its attractive range of models. Measured against the Audi Group’s total revenue, the share of EU-taxonomy-compliant revenue increased to 12.3% in the first half of 2022. This way, the company underlines the importance of the ESG sustainability criteria anchored in its “Vorsprung 2030” strategy for all company and product decisions.

Operating Margin Significantly Exceeds the Strategic Target

For the first half of 2022, the Audi Group recorded a new high of €4,933 (2021: 3,113) million in operating profit, an increase of 58.5%. Operating margins climbed to 16.5% (2021:10.7%). In addition to the good price position and strong operating performance of the Lamborghini, Bentley, and Ducati brands, the operating profit includes positive effects from commodity hedges totaling €0.4 billion. Following a significant tailwind during the first quarter (€1,2 billion), the impact has eroded substantially.

“The significant increase in the operating profit and the operating return on sales in the first half of 2022 way above the strategically defined target corridor of 9 to 11% shows that we have mastered the turbulence well and systematically seized the opportunities at the same time,” says Jürgen Rittersberger, Member of the Board of Management for Finance and Legal Affairs of AUDI AG.

Strong Operating Performance for Lamborghini, Bentley, and Ducati

The Lamborghini brand increased its sales in the first half of the year by 30.6% to €1,332 (2021: 1,020) million. The brand’s operating profit increased by 69.3% to €425 (2021: 251) million, with a margin of 31.9% (2021: 24.6%). Bentley achieved revenues of €1,707 (2021:1,324)* million while operating profit increased to €398 (2021: 178)* million to a new record high. The margin was 23.3% (2021: 13.4%)*. A strong price position offset Ducati's declining delivery figures. The motorcycle brand increased its revenue by 5.4% to €542 (2021: 514) million, generating an operating profit of €68 (2021: 59) million – corresponding to an operating margin of 12.6% (2021: 11.5%).

Financial Result and Net Cash Flow

The financial result in the year’s first half was €754 (2021: 762) million. This result includes the lion’s share of the business in China, which amounted to €431 (2021: 565) million, lower than the previous year. The decline is a consequence of the COVID-19 lockdowns in China in the second quarter. Earnings after taxes soared to €4,390 (2021: 3,386) million – an increase of 29.6%.

Compared to the very high figure in the previous year's first half, net cash flow normalized to €2,593 million in the first six months of 2022 (2021: 5,512 million). Among other things, this is due to increased inventories caused by disruptions to logistics and supply chains, especially by COVID-19 lockdowns in China and inadequate semiconductor availability. Additionally, investments, for example, in the new production site at Audi’s FAW NEV Company in Changchun and the transfer of stakes within the Volkswagen Group reduced Audi’s net cash flow.

Despite the Challenges: Forecast for Deliveries, Revenue, and Margin Confirmed

The Audi Group’s forecast includes the currently foreseeable short-term consequences of the war in Ukraine, the ongoing semiconductor crisis, and the COVID-19 lockdowns in China in the first half of the year. The other effects of the geopolitical situation and the gas shortage on the global economy cannot be predicted with sufficient certainty.

The brand group expects deliveries of between 1.8 and 1.9 million vehicles and revenues of between €62 and €65 billion for the full year 2022. The operating margin is forecast to be between 9 and 11%. Net cash flow is expected to reach between €4.5 and €5.5 billion. Audi anticipates a CapEx ratio of between 4 and 5 percent. Due to higher upfront expenditure on future technologies, the proportion of research and development costs is now expected to be slightly above the 6 to 7% corridor.

When sharp minds work together, a comfortable couch isn’t always necessary. Certainly not in Audi’s Production Lab. Anyone who enters the hall in Gaimersheim feels like they are in a combination of a shop floor and an IT lab. In one corner are the 5G antennas. Diagonally across from them, an industrial robot is sitting on its base. Behind that are the server cabinets. IT experts sit at desks looking at their computers. “We take an idea that worked once under lab conditions and get it off the ground so it can go into stable 24/7 operation,” Löser explains. “We don’t need a big sofa or a football table for that.”

For Löser, a real production environment is much more important. In the past, new technologies were inadequately assessed because Audi couldn’t try them out first. To change that, the company with the four rings created the Production Lab in 2012. Since then, Henning Löser's team has tested intelligent assistance systems that employees support with new variants in the mesh between the person and the machine. These systems conserve resources and continuously develop and improve procedural safety and workplace ergonomics. One example is modular assembly, Audi’s assembly and logistics concept that is the only one of its kind in the world.

Every day, experts research and test new high-tech solutions like Ingolstadt shop floor IT or 5G for mass production suitability in increasingly networked, digitalized production. “In the process, we are constantly in touch with our colleagues in production so we can be sure we can implement our ideas,” says Löser, who has overseen the P-Lab since 2016. “We show them exactly what we're working on. There’s no point in us developing something theoretical that nobody uses in practice. We test and learn.”

Stability Is Critical

Stable production is critical for Audi and the P-Lab. “Our goal is 99.9 percent reliability,” says Löser. “We must assess how good uptime is in daily use.” How good is the corresponding service concept? How should colleagues from maintenance be trained so that the new application operates without interruption? “We only transfer new technology into production when our colleagues say something truly helps them,” the P-Lab boss explains. Another important factor is whether a good area of application even exists within the production process.

Paradigm Shift in Automation

The technologies that have occupied the workers in the P-Lab over the past ten years have changed significantly. They operate on the principle of ‘higher, faster, further’. “Making production better is like a competitive sport,” says Löser. “That means we use more cameras, more sensors, and above all, more algorithms in production.” Nonetheless, the system must operate steadily. “Make things as simple as possible. Then they won’t break,” the P-Lab boss says.

Right now, a paradigm shift in automation is well underway. “If we use 100,000 cameras in production, we also have 100,000 industrial PCs that do the assessment,” he explains. “But then who takes care of maintenance and repairs on that equipment? Who updates the operating systems? At some point, the cost of maintenance exploded.” Driverless vehicles are another example. The more Audi uses, the more functionality and fleet managers it needs.

On top of that, there is also equipment maintenance and monitoring. “The overall efficiency has to be right,” says Löser. The solution: work based on software and cloud technology. Updates go via the server – with three mouse clicks. Löser says, “Right now, we're running our shop floor IT in the Ingolstadt Heifer via a central server solution.”

Experts Are Looking Toward the Future

The P-Lab plans and tests far in advance. According to Löser, traditional production planning did not allow that kind of leeway. 5G is one example. Since 2018, the P-Lab in Gaimersheim has operated a 5G base station. To use 5G as a radio network suitable for automated production, the standards that must be applied are not the same as those for downloading videos. For example, controlling the equipment requires URLLC (Ultra-Reliable Low-Latency Communications). The tests in Gaimersheim enabled them to work out requirements for the global 3GPP standard and contribute them to groups that maintain standards. “We did our part to make 5G function seamlessly as a radio standard in automation,” Löser explains. The lab’s work ranges from controls for a safety cell with robots that must turn everything off within ten milliseconds to logistics applications that link containers using massive device connectivity. “We’ll need that when it comes to the future of production and logistics,” says Löser.

Direct Exchange Makes Pragmatic Solutions Possible

Today, more than 30 staff members from the Production Lab work closely with the various sites. Because inter-departmental colleagues from all production areas work simultaneously in the P-Lab on a range of projects, the number of workers is multiplied five or six times by temporary lab users. “Something is always going on in the P-Lab. Direct interaction with the users is important,” says Löser. Audi Production thrives on an open innovation culture, enabling the team to innovate. It makes the P-Lab an attractive employer for ambitious IT experts and engineers.

Löser says that technologies can drift to a certain point in a lab. The most recent mistakes only arise through use and must be eliminated on the spot. “To stay flexible, we need a smart factory that responds quickly to fluctuations in demand,” says Löser. “We can't just try out new ideas in serial production while it's happening. That would be disastrous. We’re in the P-Lab to do the necessary tests and take the next steps in smaller pilot projects. After that, we test out the technology, for instance, in the real lab of the Ingolstadt Heifer and take it to mass production from there.“

The C5: a desire for performance in the upper mid-range

Shortly after the start of the new millennium, what was then quattro GmbH (now Audi Sport GmbH) was faced with the question of which car the staff would give a sporty renovation to after the RS 4. It was an opportune moment for the Audi A6. The first generation (C5) underwent a product enhancement in 2001 and Audi also wanted to add more power under the hood in its upper mid-range.

The brand was self-aware and motorsports were in high demand. Audi drove its way to the winners stand on the first try at its premiere in the legendary 24-hour Le Mans in 1999. The company with the four rings made history again in 2000, 2001, and 2002. With 13 wins, it is now the second-most successful team of all time in Le Mans after Porsche. The Audi engineers at quattro GmbH put a great deal of effort into making the A6 a sportscar. That meant not only adapting the engine, suspension, and transmission. Audi also shifted its appearance into a higher gear: it grew four centimeters (1.6 in) in both length and width. New skirts, wider sills, a spoiler for the Avant, a distinctive breakaway edge for the Sedan, 18” or 19” wheels, and two oval tailpipes emphasized its sporty ambitions.

In 2002, no other Audi had more power

The objective was to add an eight cylinder to the basic design of the A8, series D2. The engine was already on the job in the S6, giving it 340 PS without charging. Nonetheless, it needed a lot of detail work: a powerful engine that from then on was double-turbocharged and had 4.2 liters of displacement did not fit in the body of the A6 at first. As a result, quattro GmbH extended the front end and gave the V8 four centimeters (1.6 in) more installation space. The engine that drove the first RS 6 was not fine-tuned in Ingolstadt or Neckarsulm, but in England. Together with quattro GmbH, British engine manufacturer Cosworth, which was a subsidiary of AUDI AG until 2004, was also responsible for the impressive 450 PS output and 560 Nm of torque. That put it at the top of the segment. The V8 in the RS 6 sent a real message to the competition. As a comparison, at the time, the DTM Audi from the ABT team, which Laurent Aïello used to bring home the 2002 title, also had 450 PS.

A lot of power requires good control. The era of the manual transmission was over. For the first time, a torque-converter transmission gave an RS model shorter shifting times for gear shifts. Five driving modes enabled acceleration to 100 km/h (62 mph) in 4.7 seconds. To make sure that the RS 6 Avant and Sedan impressed with their ideal spread between comfort and sportiness even in everyday driving, Audi now turned to the newly developed Dynamic Ride Control (DRC) suspension. Stephan Reil, who has been in charge of developing all the RS 6 series and is now Head of Technical Development at the Neckarsulm site, summarizes by saying that “the DRC reduces roll and pitch movements in sporty driving, both on straightaways and in curves.” In concrete terms, it binds the car more closely to the road and constantly ensures agile handling, particularly in dynamic cornering. Dynamic Ride Control consists of steel springs that have two diagonally opposite hydraulic shock absorbers. These counteract the motion in the body of the vehicle without any time lag and they do it without electronics. When the car is turning into or traveling around a bend, the damper response is altered so that the vehicle’s movements are significantly reduced along the longitudinal axis (roll) and the transverse axis (pitch).

All first generation RS 6 vehicles (C5) were made both on the production line and by hand. Driveable, but far from complete. For instance, they lacked the filled suspension, RS-specific components, and individual decor elements in the interior. That is why they went from the plant in Neckarsulm to an adjacent hall. There quattro GmbH workers finalized each car individually over about 15 hours on the hydraulic lift.

To date, the C5 is the only RS 6 that is also a racing car from the start. The RS 6 Competition, which Champion Racing uses, outperformed its competitors with equal displacement in the 2003 SPEED GT World Challenge with Randy Pobst at the wheel. The V8 biturbo offered 475 PS, had a manual shift, and won on its first attempt.

At the end of the series, quattro GmbH added a shot of additional power and augmented the name with a “plus” as it went from 450 to 480 PS while the torque remained at 560 Nm. Now, a top speed of 280 km/h (174 mph) was possible, rather than 250 km/h (155 mph). Previously optional equipment became standard.

The C6: the history of the crowning achievement in engine construction continues

In 2008, six years after the first RS 6, the second generation followed. Audi increased not only power and displacement, but also the number of cylinders for a total of ten. There were still two turboloaders, and now five liters of displacement. Altogether, that meant 580 PS and 650 Nm of torque, available starting at 1,500 rpm. At the time, those numbers even exceeded the R8, which had a maximum of 560 PS in the R8 GT. For three years, Audi produced the largest RS engine ever. The V10 is a force of nature. It weighed 278 kg (613 lbs). To ensure the oil supply when driving through curves at high speeds, Audi turned to dry sump lubrication – a principle borrowed from motorsports: the separate oil tank allowed the V10 engine to sit in a low position, giving the whole car a low center of gravity. The system was designed for racing; it supplied up to 1.2 g of oil for longitudinal and lateral acceleration. Stephan Reil remembers well how systematic the Audi developers were in their use of every centimeter of installation space: “With its two turbochargers and manifolds, the V10 already looks like a work of art. And it's powerful. I don’t know of any engine compartment that is filled better than the one in the
RS 6 C6.”

As was already the case with the C5, the ten-cylinder also needed a transmission that could handle power. The six-gear automatic that it used was substantially reworked to meet that need. Cooling, shifting speed, power distribution – all of it was improved.With this combination of engine and transmission, Audi achieved a top speed of over 300 km/h (186 mph) – 303 km/h (188 mph), to be precise – for the first time with the RS 6 plus. Acceleration in the regular RS 6 topped out at 250 km/h (155 mph) with 280 km/h (174 mph) available as an option for an additional charge. Hardly any other car in the series could touch the C6 on a straightaway. The Sedan needed 4.5 seconds to reach 100 km/h (62 mph); the Avant took 4.6 seconds. That kind of propulsion needed braking power to match. The first ceramic brakes (420 mm (16.5 in) discs front, 356 mm (14 in) rear) were optional in the RS 6 and stopped this dynamic car extremely reliably. In order to give passengers a sporty and comfortable ride to their destinations, Audi relied on the DRC suspension for the second time, something that customers now get as standard equipment in the Avant and the Sedan. For more everyday comfort across the whole spectrum of driving situations, the DRC suspension could be equipped for the first time with an additional adjustment unit on the shock absorbers that offered three-stage settings, for an additional price.

As with its predecessor, Audi kept this model visually subdued. Protruding fenders that set it apart from the base model and large wheels and tires (19” and 255/40; 20” and 275/35 optional) offered plenty of room, widening the car by only 3.5 centimeters (1.38 in) total to 1.89 meters (6.2 ft). The C6 also went from the production line directly to the adjacent quattro GmbH hall for extensive refinement. There, workers finalized the car like they did its predecessor model. For its finale, the C6 ended as an RS 6 plus Sport or an RS 6 plus Audi Exclusive. In all, 500 limited vehicles rolled out of the plant in Neckarsulm. It came with a numbered badge on the interior, special alloy wheels with a five-spoke design, leather on the instrument panel, and floor mats with the RS 6 logo.

The C7: making more from less

Fewer cylinders? That can’t be right! That is one critique that not only customers raised when Audi moved away from the ten-cylinder biturbo in 2013 and returned to a double-turbocharged eight-cylinder with four liters of displacement – the smallest engine in the history of the RS 6. Additionally, the classic Sedan was discontinued without a replacement; the Audi RS 7 Sportback took over in the US. Yet the critics were soon silenced. Audi had put together a package that left the previous RS 6 models far behind it in terms of driving dynamics and efficiency. Above all, this made it possible to systematically reduce weight. Among other things, a significantly higher portion of aluminum, including all of the attached parts, reduced the weight of the C7 generation by a good 120 kg (265 lbs). At the same time, the Avant was six centimeters
(2.4 in) wider on the street than a conventional A6. While about 60 percent of the total mass still lay on the front axle in the C6, Audi now reduced that to 55 percent, which amounts to saving about 100 kg (220 lbs). One other reason: the engine sat about 15 centimeters (5.9 in) further back. The RS 6 made it clear on the road that dropping two cylinders and 20 PS did not harm performance at all. With 700 Nm of torque and the new 8-speed tiptronic, the C7 only needed 3.9 seconds to reach 100 km/h (62 mph), half a second less than its predecessor. Its instrument panel showed a top speed of 305 km/h (190 mph). At the same time, the fact that it had fully 30 percent lower fuel consumption than its predecessor was a result not only of the reduced weight, but also the cylinder deactivation that makes the RS 6 into a four-cylinder when it has a light load. Once more, ceramic brakes with discs (420 mm (16.5 in) diameter, 365 mm (14.3 in) rear), which ensure maximum negative acceleration and are particularly beneficial in moments of high endurance stress, were available.

One novelty for the third generation of the RS 6: customers wanted a little bit more comfort, so air suspension became a standard feature for the first time. Now 20 millimeters (0.79 in) lower and with sportier tuning, adaptive air suspension increased day-to-day driving enjoyment. Another convenience for quickly transporting belongings was, for the first time, a trailer hitch as an option. On the other hand, the DRC suspension was well established.Opinions were unambiguous: the RS 6 C7 stood apart from its predecessors in every area, be it the drive system, suspension, comfort, or efficiency. What it had in common with other generations is that, like its predecessors, the C7 also switched halls during assembly in Neckarsulm.

Audi coaxed more and more power from its four liter, eight-cylinder engine over the years. The RS 6 performance reached over 600 PS (605, to be specific) for the first time. With the overboost function, 750 Nm briefly processed the powertrain.

Despite the initial criticism about the reduced power and fewer cylinders in the C7, it was precisely this generation of the RS 6 that became a bestseller and market leader in the high-performance station wagon segment. It was a top position that its successor still holds today. The RS 6 C7 Avant resonated around the world. One market that traditionally favored sedans, namely the United States, pressed for it on its domestic market, but it would have to wait a little longer.

The C8: the best to date, but the work is never done

In 2019, three years before its 20th birthday, the fourth generation of the RS 6 (C8) rolled out to dealerships and stayed faithful to its heritage. Four liters displacement, biturbo, 600 PS, and now 800 Nm of torque. For the first time in its history, this car is supported by a 48 volt mild hybrid system, improving efficiency even further. Although it is a bit heavier, the RS 6 Avant1 races to 100 km/h (62 mph) in a brisk 3.6 seconds; it only needs twelve seconds to reach 200 km/h (124 mph). On straightaways, the C8 leaves little doubt. It also sets a new standard for itself in terms of lateral acceleration and cornering.

New all-wheel steering improves stability at high speeds, given that the rear wheels now turn in the same direction as the front wheels in those situations. When maneuvering at low speeds, they turn in the opposite direction as the front wheels in order to reduce the turning radius and make parking easier. But hassle-free parking isn’t the only thing that’s important to customers. As in the earlier models, they also want to be able to take a trailer with them. “By now, more than half of our European customers order a trailer hitch,” says Stephan Reil. “That shows that customers don’t only want a sporty drive, they also want to meet everyday challenges.” Audi responded to customer demand and continued to offer those options, now with air as well as DRC suspension.

And the design? Where the C5, C6, and C7 generations of the RS 6 only stood out as power station wagons on the second look, the C8 creates a different impression: even lay people will recognize right away that this is no normal A6. The roof, front doors, and tailgate are the only things that the RS 6 Avant shares with the A6 Avant base model. The other components were altered specifically for the RS and the body was widened by a noticeable eight centimeters (3.15 in). Very few people know that the fastest of all A6 models also has an independent hood for the first time and that all these alterations mean that it can have the Matrix LED Headlights with laser lights from the RS 7. The wheels and tires also stand out as wider and taller. The 21” diameters (275/35) are standard equipment for the series; 22” (285/30) are available as an option for the first time. Unlike its predecessors, the C8 is not manufactured in separate halls – which have since been renamed Audi Sport GmbH – but rather roll off the assembly line in Neckarsulm ready for the showroom.

Article source: www.audi-mediacenter.com