Editorial. Dear partners, Dear colleagues,

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1 Nr. 04/2016, April 2016 Editorial Dear partners, Dear colleagues, First of all, congratulations for the excellent result last month. March closed as the best month ever, and the 1 st quarter of 2016 was the best ever for both for new car sales as well as for CPO. Twenty seven dealers had an all-time high in sales in the first quarter of The business on the Aftersales side also picked up in March, so all in all a fantastic first quarter and a great start for 2016! At the beginning of March we received the latest results from Consumer reports. The question asked in the report was: Which Brands Make the Best Cars? In order to determine which brands consistently deliver cars with the highest customer satisfaction, they tabulated the overall score, road-test score, and predicted reliability results for each model of a brand and averaged those scores at the brand level. Audi came in first with 80 points, ahead of Subaru with 78 points and Lexus with 76 points. BMW finished 5 th and Mercedes 14 th. What a great result and proof once again of the strength of our brand. During our Canadian Dealer Meeting in Victoria from April 18 th to 20 th we will have the chance to see each other personally. My team has been working on our most important event for 2016 for the last few months. We will start on April 18 th with the first Audi Dealer Golf Tournament, followed by a welcome dinner. On April 19 th we will have our dealer conference where we will share our Go40 strategy with our investors, as well as our plan for In the afternoon you will be the first ones to have the opportunity to experience the spearhead of Audi Sport, the R8 V10 plus on the brand new Vancouver Island Motorsport Circuit. Finally, I want to thank you for your patience with respect to the TDI stop-sale. It has been very difficult for all of us, and I understand your frustration and disappointment as a result of the TDI situation. The VW Group is working closely with the authorities to find solutions for the 2.0 TDI and 3.0 TDI derivatives. A lot of progress has been made and we expect that we will obtain a favorable answer from the regulators on the 21 st of April. We will schedule an all dealer webcast for April 25 th to communicate the details. Again, my apologies for the challenges that the TDI situation is causing at your dealerships. We will continue to support you so that we may focus on the things we can do best selling cars! I look forward to seeing you on Vancouver Island for our Dealer Meeting. Yours, Daniel Weissland 1

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5 Network Development Facilities Development Congratulations to Audi Sudbury and Audi Kitchener-Waterloo who have moved into their new, exclusive facilities during March. We look forward to their future success as their businesses grow into the new environments. Timing couldn t better with the new Audi Q7 and Audi A4 market introduction coinciding with their project completion. Audi Kitchener-Waterloo Audi Sudbury 2016 Dealer Standards Audits As communicated last month, only those dealerships that were not audited in 2015 will be audited this year. The audits will take place through late May and June. We will be in contact with these dealers shortly to provide a refresher on the process. A representative from Weis & Associates will be in touch after our contact with audit details, requirements and scheduling information. Please ensure you review your calendar for availability on the proposed date and confirm with Weis & Associates. Please contact Lauren Beechey (lauren.beechey@audi.ca) if you have any questions. Most Attractive Dealership Brand Profitability is at the heart of all our efforts. The Most Attractive Dealership Brand program providing your management team in-depth, in-dealer consultancy from our partner NCM, has been initiated in 4 more dealers through the month of March. Now, 40% of the network has engaged in this exciting, dealer-focused initiative. Our Business Management Specialist, Charles Daniel, continues to work to incorporate this program into your timetables. Our intent is to cover the entire network before the end of the third quarter of this year. Contact Charles at Charles.Daniel@audi.ca to arrange for your no-charge business review and planning sessions. 5

6 Audi Canada Academy Sales Training News Audi Sales Manager Core Training Sales Manager Core training has wrapped up for All sessions were well attended. For all those who have completed Sales Manager Core training in 2016, the Global Accreditation test will take place in the fall. Study materials will be included in the invitation. Audi Sport / R8 Launch Training Audi Sport / R8 Launch training will be taking place at the new Vancouver Island Motorsports Resort, from April Audi Sport dealers have already selected their Sales and Service advisors that will become certified Audi Sport Experts. Audi ABS Core Training ABS Core training is an opportunity for Audi brand specialists to develop the required knowledge, skills, attitude and behaviours expected by Audi Canada and AUDI AG. ABS Core training will be offered in Vancouver on April & April 25-27, in Ontario on June 7-9 & June 27-29, and in Montreal on June Invites for ABS core have already gone out to eligible participants. Audi Growing Accessory Sales Phase 2 This unique in-dealership training session is designed to support accessory sales growth, building upon last year s Growing Accessory Sales workshop. This program starts in April and runs until June. See the tour schedule in the invitation to find out when your session will take place. Audi Activation The spring sessions of Audi Activation begin the first week of May in Victoria, BC. Participants will learn about the Audi brand, heritage and technology as well as experiencing a test drive of many Audi models. After Sales non-technical update On March 29th and 30th, Audi Canada hosted the 2015/16 Audi Twin Cup National Finals in the Ajax. Six technicians and six service consultants from across Canada were invited to Toronto to participate. All finalists should be commended for their great performance and their display of Audi brand values. At the end of a very close race, we are thrilled to announce the following results: 6

7 Audi Canada Academy The top three scoring competitors from each category will form the Canadian Twin Cup team at the Audi Twin Cup world finals in Portugal this fall. Congratulations to everyone who competed in this challenging competition and good luck to this year s team at the world event. 7

8 Marketing A4 Launch The A4 mass media campaign started on March 28th and it will last until May 1st. We will have a strong TV, but also digital presence with video and traditional banners. In order to maximize awareness for the car among prospects and existing drivers (which is over indexing on digital activities and also on entertainment) we also have digital and Out-of-home presence. Highlighted on the OOH boards in Montreal and Toronto are the LED lights. Digital Marketing We will focus heavily on targeting and re-targeting through digital and social media to maximize conquest. On audi.ca the enhanced model pages feature a lot of video content and has been live since March 11th (audi.ca/a4). Dealer Marketing Material Since the end of February A4 assets have been made available for download on the Audi Hub and include: Ad Mats Digital Banners Social Media Dealer PDF Showroom trailer DVD to be sent directly to dealership CRM - Audi A4 VR App The Audi A4 VR app will be available in Canada. As part of the new Audi A4 launch, an innovative virtual reality app was developed to showcase the A4 s technology while giving consumers a chance to experience the A4 in a whole new way. The app features 360 degree video, sound design and traditional video and will be compatible with ios and Android. It is designed to virtually put you in the driver s seat and allows you to explore the cockpit first hand. While in the virtual cockpit your eyes are shown several hotspots and you are then taken on an exciting journey to experience the state-of-the-art sound, engine and navigation of the new Audi A4. The app will be available for download in French and English at the end of April

9 Marketing Audi Sport / Audi R8 Launch Dealer Marketing In anticipation of the R8 launch, dealer marketing assets will be made available on the hub starting April 6th. Assets available for download on the Audi Hub will include; R8 Imagery (already available) Ad Mats (week of April 4th) Digital Banners (week of April 4th) Social Posts (week of April 11th) Showroom trailer DVD (week of April 11th) CRM Audi Magazine In the Spring Issue of Audi Magazine we take a closer look at the exciting world of Audi Sport and the meaning behind the red rhombus. This edition will feature many interesting articles such as a look into the Audi R8 V10 plus Coupé and Ducati 1299 Panigale S racing on the Isle of Man, and an outline of the manufacturing process of the Audi R8. These articles and many more are highlighted in this issue. The magazine will be available mid-april. Experiential Marketing Audi Sport R8 Launch Event and 2016 Canadian Dealer Meeting The 2016 Canadian Dealer Meeting is fast approaching and will take place in Victoria, BC from April 18th to April 20th The national dealer meeting will run in conjunction with the launch of the new Audi R8 and the launch of the Audi sport brand. This occasion brings us together to share with you the Audi vision and strategy across all departments. We have incorporated a thrilling Audi drive experience at the all new Vancouver Island Motorsport circuit into the itinerary. We are delighted to announce that Audi Canada will be the first automotive brand to utilize the facility and look forward to some fun on the track with you! As a special welcome to the event, customers that submitted their information and confirmed their attendance early will be receiving an Audi Sport Key Chain starting April 15th. Attached is a sample of what customers will receive in the mail in the coming weeks. 9

10 Marketing Audi quattro Cup 2016 Planning has begun for Audi quattro Cup Building on the success of last year s tournament, we are focused on offering your customers the best program yet. Your regional event registrations should all be in now and we are delighted to announce the 2016 Audi Canada National Final will take place in Sparkling Hill, Vernon BC from August 26th to 29th. Product Planning For model year 2017 vehicle changes please refer to the product bulletin which will be released shortly. 10

11 Public Relations Audi Sport TT Cup Trackday in Neuburg, Germany Audi Sport will be holding a press day on Thursday, March 31 st. in Neuburg, Germany. The feature drive will include R8 s as well as the Audi TT Cup car. Coverage will be in TV and print/web formats. Audi A4 allroad quattro press event in Munich, Germany Audi Canada will be participating in an AUDI AG press event for the all new Audi A4 allroad quattro in Munich, Germany. The press day is Thursday, April 7 th. You can expect to see coverage in all formats. Beijing Autoshow Canadian journalists will be attending the AUDI AG presentation in Beijing as guests of Audi Canada. The press days are on Monday, April 25 th and Tuesday, April 26 th. You can expect to see coverage in all media formats Latest Audi News Please find listed below quotes from a recent article on the Audi A3 e-tron by David Booth of Post Media. More than any plug-in hybrid I ve tested, the new A3 e-tron replicates the emissions-free driving of an electric vehicle. Turn-in is excellent, there s some actual feedback through the steering wheel and there s none of the oh, you wanted me to turn? Toyota Prius like body roll. Along with its vivid electric performance and surprisingly sporty handling, the A3 e-tron is still an Audi. That means an excellent MMI infotainment system, a quality stereo system and an interior build quality that is second to none. 11