Audi in Ingolstadt. Four Rings on the Danube. Audi Vorsprung durch Technik

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1 Audi in Ingolstadt Four Rings on the Danube Audi Vorsprung durch Technik

2 Inhalt The origins of Audi the history of the automotive company... 4 Audi in Ingolstadt a chronology... 6 Decades of success the Ingolstadt site Vorsprung durch Technik Technical Development Expansions in the vicinity of Ingolstadt Digitalized production of the future Punctual, flexible and efficient logistics Premium quality for the digital age quality assurance Economics and ecology in harmony environmental protection at Audi Top performance from top employees human resources Young recruits are the future training and development Audi experience including in culture and sport Strong roots Audi is committed to the region Audi production sites worldwide Audi models fuel consumption and emissions figures... 46

3 The origins of Audi the history of the automotive company Employees of the former Auto Union AG made a new start in Ingolstadt. Many came from the eastern regions of Germany from Zschopau, Chemnitz and Zwickau. Like a phoenix rising from the ashes, an extraordinary car manufacturer developed over the following decades. Hot off the line: a DKW Junior in front of the new plant in Ingolstadt (today s site), Auto Union GmbH was founded in 1949, and Ingolstadt has been the home of the four rings ever since. AUDI AG is the region s largest employer. The company currently employs around 44,000 people in Ingolstadt alone. The trademark four interlocking rings was created in 1932 when the brands Audi, DKW, Horch and Wanderer joined to create Auto Union AG, with headquarters in Chemnitz. The history of DKW can be traced back to 1904, when Danish industrialist Jørgen Skafte Rasmussen founded a company in Chemnitz that manufactured and sold steam boiler fittings. Production was relocated to Zschopau in 1907; the company was renamed to Zschopauer Maschinenfabrik J. S. Rasmussen in Between 1916 and 1919 the firm experimented with Site of the Auto Union GmbH plant at Ingolstadt s Esplanade: a DKW Schnelllaster van transporting a DKW RT 200 H motorcycle, steam-driven vehicles called Dampfkraftwagen in German, which was the origin of the abbreviation DKW. After producing motors for toys and auxiliary motors for bicycles, the company began manufacturing motorcycles. The first DKW car was built in The roots of Wanderer reach back to On February 15, 1885, Johann Baptist Winklhofer and Richard Adolf Jaenicke founded the firm Chemnitzer Velociped-Depot Winklhofer & Jaenicke in Chemnitz, which sold and repaired bicycles. The first Wanderer motorcycle was built in The company founders presented the first prototype car the Wanderermobil back in Volume car production began in The history of the automobile brand with the four rings is closely linked with the name August Horch. This businessman opened his first workshop in Cologne back in In 1904, he founded the August Horch Motorwagenwerke AG in the city of Zwickau in Saxony. Five years later a dispute arose between the founder and the supervisory board. August Horch left the company and on July 16, 1909, launched a new firm under the name August Horch Automobilwerke GmbH, which was changed to Audi Automobil- Werke m.b.h on April 10 of the following year. Audi is the Latin translation of the German word Horch, which means listen!. 5

4 Audi in Ingolstadt a chronology 1945 Founding of Zentraldepot für Auto Union Ersatzteile Ingolstadt GmbH in Ingolstadt, Schrannenstraße Start of spare parts production 1948 In August, removal of the old Auto Union from the commercial register in Chemnitz. In Ingolstadt, start of development of a delivery truck Establishment of Auto Union GmbH as a production company. Start of production of DKR Schnelllaster van and DKW RT 125 W motorcycle Inauguration of the new motorcycle plant in Ingolstadt 1958 On April 24, acquisition of majority share in Auto Union by Daimler-Benz AG; wholly-owned subsidiary through end of Cornerstone laid for new car factory in Ingolstadt; end of motorcycle production First DKW Junior from the new plant in Ingolstadt 1962 In June, sale of facilities in Düsseldorf to Daimler-Benz AG; vehicle production primarily in Ingolstadt 1964 In December, acquisition of majority share in Auto Union by Volkswagenwerk AG; wholly-owned VW subsidiary since end of First post-war Audi from Ingolstadt. Production of DKW models is gradually discontinued Merger of Auto Union GmbH and NSU Motorenwerke AG creates NSU Auto Union AG with headquarters in Neckarsulm 1972 The Audi 80 is launched a bestseller made in Ingolstadt Start of production of the Audi quattro in Ingolstadt 1985 Company renamed to AUDI AG with headquarters in Ingolstadt. Products and company have borne the same name ever since Opening of the Audi Customer Center in Ingolstadt 2000 Inauguration of the Audi Forum Ingolstadt 2009 Centennial of the Audi brand. 60th anniversary of the main site in Ingolstadt In front of the headquarters of Auto Union GmbH: an Auto Union 1000 SP on Ettinger Straße in Ingolstadt, Ten-millionth automobile from the Audi 80/Audi A4 series 2013 Opening of a production facility in Münchsmünster 2014 Opening of Audi Neuburg: Audi driving experience center and Motorsport Competence Center/Audi Sport 2015 Opening of the Light Assistance center in the Technical Development division. Opening of Audi Akademie in the center of Ingolstadt, IN-Campus: land for future technology center Launch of the new Audi Q2 SUV model, commissioning of the new paint shop and office complex 2017 New production and logistics building at GVZ Logistics Center and opening of new Design Center 6 7

5 The Audi site in Ingolstadt covers an area of 2,737,500 square meters (29,466,204.8 sq ft) in the north of Ingolstadt. Added to this is an area of 506,000 square meters (5,446,538.7 sq ft) at the GVZ Logistics Center, in top left of photo. 8 9

6 Decades of success the Ingolstadt site The heart of AUDI AG beats in Ingolstadt. More than half a million cars produced and around 44,000 employees those are the impressive statistics for the Ingolstadt site. An automobile drives off the assembly lines approximately every 30 seconds, or around 2,400 Audi models a day on average. The cars produced here are the Audi Q2, Audi A3, Audi A4 and Audi A5 as well as their derivatives. Audi is the region s economic engine and largest employer. The company has established a global reputation as a center of automotive manufacturing. Up to 380 cars are delivered to their new owners each day at the Audi Forum Ingolstadt. onto the market pioneering lighting technology, lightweight construction and driver assistance systems. A new item on this list is the operating concept with touch displays featuring haptic and acoustic feedback. With the four-door concept car Audi Aicon, the brand with the four rings presents a fully self-driving Audi of the future with no steering wheel or pedals. The founding of Auto Union GmbH in Ingolstadt in 1949 started a new chapter for this car manufacturer, which was previously headquartered in the German state of Saxony. The company began production of spare parts, motorcycles and DKW vehicles in old buildings in the Ingolstadt fortress. In 1985, the automotive company was renamed to AUDI AG. Both the company and its products have borne the same name ever since. The plant in the heart of Bavaria is not only the company s largest production facility, but is also home to the Audi Group headquarters and the Technical Development division of AUDI AG. As the economic engine for the region around Ingolstadt, Audi is committed to its home on the Danube. The company s story of success included chapters for the Audi 80, Audi 100, the quattro and victories in rally racing. Audi continued to develop steadily over the following decades. The Audi 80 became the Audi A4, the Audi 100 was followed by the Audi A6 and a highly diverse model range. After the legendary quattro drive system the embodiment of the slogan Vorsprung durch Technik, Audi introduced a long list of technical innovations With about 400,000 visitors per year, the Audi Forum Ingolstadt is a popular attraction for people in the region and visitors from all over the world, as well as for people picking up their new cars. It represents an urban, open philosophy, combining production, tradition, shopping, a cinema, dining facilities, driving enjoyment, exhibitions and conference rooms in a single location. Cultural events such as concerts ranging from jazz to classical, art exhibitions, factory tours and the Audi museum mobile round out the range of experiences for the whole family. Kids and teens get fascinating insights in the themed attractions at Audi, with exciting activity modules, innovative driving simulators and multimedia quizzes. Each day Audi delivers up to 380 cars to their new owners at the Audi Customer Center. Customers who arrive for a new car pick-up by rail are greeted at the exclusive Audi Lounge in the main railway station in Ingolstadt with a very special service: A VIP shuttle brings them quickly and conveniently to the Audi Forum Ingolstadt. The AUDI AG plant in Ingolstadt covers the entire process of vehicle production from development to the finished car. Housed inside the production halls are a press shop, body shop, paint shop and assembly line

7 Vorsprung durch Technik Technical Development The Technical Development (TE) division of AUDI AG has its headquarters in Ingolstadt. In keeping with the brand claim Vorsprung durch Technik, around 9,000 employees work here on innovations for the cars of tomorrow. The tasks of Technical Development include everything from the development of new bodies, transmissions, engines, suspensions or vehicle concepts to design and electrical and electronics development. Enhancing connected collaboration: 450 employees from Development, Model Series and Procurement work at the SE Forum with the task of shaping the automotive future. SE stands for simultaneous engineering products and processes are designed in an integrated and simultaneous manner. This further shortens the development cycles of new models. The tallest building on the site is also home to a state-of-the-art test laboratory and testing equipment as well as an innovative IT center. Digital design workshop: The light-filled, transparent new Design Center is 107 meters (351.0 ft) long, 71 meters (232.9 ft) wide and around 21 meters (68.9 ft) high. Pioneering lighting technology from Ingolstadt: an HD Matrix LED headlight with laser light from the Audi A8. Lighting the way: The Light Assistance Center is housed in the basement of the SE Forum and is a very large light testing tunnel which cars can drive into. From xenon plus headlights to Matrix LED headlights and laser lights, Audi has been putting pioneering innovations into series production for 20 years. Perfect testing: The Acoustics, Performance, Mechanical Engineering, Material Strength and Corrosion departments work at the Physics Center. All models undergo a realistic test program that includes everything from an exterior noise test rig to a road simulator and flat road dynamometer. The new Tank Technical Center reproduces test courses worldwide in the laboratory. Work on fuel, natural-gas and SCR systems is also conducted. The building includes facilities such as a laboratory for the HiL (hardware-in-the-loop) test benches for suspension electronics, motion test beds with environmental simulation, and climate, cold and acoustic chambers. New Design Center: Audi has developed a new, innovative design process that combines the advantages of cutting-edge 3D visualization with the strengths of traditional handcrafted modeling a digital design workshop has been set up at the Ingolstadt site. On an area covering 37,180 square meters (400,202.2 sq ft), around 600 employees are engaged in the areas of design, class-a surfacing and advance engineering

8 Weatherproof: At the Engine Center, emissions and fuel consumption measurements are carried out on chassis dynamometers under various climatic conditions. Driving performance with all-wheel drive at altitudes up to 4,200 meters (13,779.5 ft) is tested in a simulation chamber. In the adjacent workshops and modern transmission test beds, units are set up and tested. Established in 2010, the Development and Test Center for Electrified Drive Systems features cutting-edge test beds for testing electrified drive concepts. Fully self-driving Audi of the future: the four-door design vision Audi Aicon with no steering wheel or pedals. Electronics? Check! The Electronics Center is equipped with a wide range of measuring and testing equipment, such as breadboards of the entire vehicle electronics for testing complex components and a climatic chassis dynamometer for simulating different weather and road surface conditions. Audio concepts are developed in an MMI laboratory (Multi Media Interface) and a sound laboratory. This is also the place for all aspects of in-car digitalization and connectivity. Smart production from the outset: The Audi Pre-Series Center (VSC) groups the tasks of Technical Development and Production together in a single area of responsibility. This paves the way for economic production of the cars from the early development phase. A tradition of testing quality: For over 20 years, Technical Development has been testing new developments in various driving situations at its own proving grounds in Neustadt an der Donau. High-speed tests are conducted on the 4.7-kilometer (2.9 mi), three-lane oval track with two banked corners. Performance, fuel consumption, noise, temperature and braking are also measured. Windproof: The Ingolstadt plant has its own Wind Tunnel Center, where three test facilities are available: the aeroacoustic wind tunnel, the thermal wind tunnel and a climatic wind tunnel. Optimal aerodynamics are honed at wind speeds up to 300 kilometers per hour (186.4 mph). The interior climate control and thermal management of the cars are developed here and the engineers are always working on reducing wind noise. Get in a virtual Audi: In the Design Check department, vehicle models can be viewed realistically and with accurate details before they are ever built. The virtual reality studios make this possible. The various materials appear tangible and life-like, giving the impression of a car the observer can get into. Great cinematic experience: Audi virtual cockpit and MMI touch response in the Audi A7 Sportback

9 Expansions in the vicinity of Ingolstadt A production facility is located in Münchsmünster while Neuburg is the home of a high-tech complex with driving course and Motorsport Competence Center. The Audi Ingolstadt site has been growing for many years, making expansion in the region necessary. Münchsmünster is home to module and system assembly operations, thanks to its good transport links to Ingolstadt. That site measures a total of 54 hectares. A 31-hectare site houses the competence center for the production of die-cast aluminum structural body parts, hotformed and cold-formed parts as well as suspension modules. Production is in full swing, with nearly 900 employees working on a three-shift basis. More than 24 million car parts were manufactured in 2017, including structural parts such as the strut towers for the Audi A4. Münchsmünster is also where suspension modules such as wheel hubs and brake disks for all Audi models from the Audi A4 upward are manufactured. The stateof-the-art press shop uses the latest press technology to make advanced body components. Audi manufacturing in Münchsmünster: The 54-hectare site is located approximately 30 kilometers (18.6 mi) east of Ingolstadt. Audi Neuburg: The 47-hectare site is located approximately 18 kilometers (11.2 mi) west of Ingolstadt. Audi Neuburg is a high-tech complex that opened in Neuburg an der Donau in Around 400 people from three business divisions of AUDI AG are employed here. The Audi driving experience conducts driving and safety trainings on the course. Audi customers and guests can experience a wide range of models from the brand with the four rings here on the handling track, on the large dynamic pad or on-road and off-road. The central customer building offers presentation areas, conference rooms and a restaurant. From the terrace, visitors can enjoy a panoramic view of the entire site and watch the cars in action. Interest is high: The center attracted around 17,500 visitors in 2017 and hosted almost 850 events. 10,000 guests from 23 countries attended driving training sessions. The German Association for Sustainable Building (Deutsche Gesellschaft für Nachhaltiges Bauen, DGNB) has awarded the customer building of Audi Neuburg the platinum DGNB certificate for ecological construction (published by DGNB, November 2015). Neuburg is also home to the Motorsport Competence Center. Since the end of 2014, the Audi Sport motorsport team has coordinated all its racing activities worldwide in the DTM, Formula E and World Rallycross Championship from its base in Neuburg. Under Audi Head of Motorsport Dieter Gass, the engineers here develop and design the racing cars for the brand s works cars. Initial roll-out trials are also run on the courses in Neuburg. The race engines are built at the Audi Neckarsulm site. Audi Sport customer racing the racing program for customers of Audi Sport GmbH has been supporting activities in this fast-growing sector from Neuburg since spring This includes GT3 racing, the TCR touring car racing category and the Audi R8 LMS GT4. 17

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11 Digitalized production of the future For Audi, premium quality in automobiles means maximum body quality through efficient production systems and new high-tech solutions. The vision is of a digital, fully connected factory. AUDI AG has one of the most flexible and efficient production systems in the entire automotive industry: The Audi Production System (APS) is based on the fundamental principles of cycle, flow, pull and perfection. Audi systematically implements these principles in production and throughout the company, resulting in short throughput times, low inventories and a large increase in productivity up to ten percent per year. The main focus is on the continuous improvement process (CIP). Increasing digitalization is paving the way for the intelligent, fully connected factory. New high-tech solutions in production enhance the very high quality level even further, while facilitating work on the assembly lines and ensuring better ergonomics at the workstations. Ergonomics is an important subject at Audi the wheel assembly at the A4 production line. Planned from A to Z: Production and Plant Planning is responsible for the planning of all vehicle projects of the Audi brand, designing the product, the manufacturing process and the production locations worldwide. In close cooperation with Technical Development, Production and Plant Planning ensures producibility of the cars. The focus is on the customers and their requirements. Photo-realistic models help visualize, analyze and assess customer-relevant vehicle surfaces. The Pre-Series Center and Toolmaking are involved in all aspects of new-vehicle development during the prototype phase. Production and Plant Planning with its approximately 1,600 employees establish all the conditions for manufacturing the Audi models in maximum quality. Leading the way in metal 3D printing: Audi stands for the high quality of car bodies exemplified by tight radii, homogeneous surfaces and exact dimensions. What is physically possible, and what can be manufactured reliably? Planners and toolmakers are conducting research into 3D printing, working in close cooperation with designers and developers. As a general contractor, Audi Toolmaking supplies both Audi and other brands of the Volkswagen Group with forming tools and body-manufacturing equipment. At the Metal 3D Printing Center at Toolmaking, Audi experts produce steel and aluminum parts from metal powder using the laser melting process. This process is used in production tools. Components for limited production vehicles could also be produced using this method in the years ahead. Audi s Toolmaking division currently employs more than 2,300 people at five locations in Ingolstadt, Neckarsulm, Barcelona (Spain), Győr (Hungary) and Beijing (China); approximately 1,100 of them work in Ingolstadt. To meet the rising standards of quality, design and economic feasibility, Toolmaking and Press Shop collaborate very closely and are organized together as the Equipment and Metal Forming Technology Competence Center. The high-tech press shop: forming an Audi Q2 hood. From sheets to complex geometries: At the Ingolstadt press shops, steel and aluminum sheets are formed into extremely precise body parts. Sheeting that is cut away in the metal forming process and is not required for the production process is recycled. The modern large-capacity presses lead the field internationally in terms of productivity. The forming tools and tremendous press forces convert steel or aluminum rolls, called coils, into the complex geometries of the individual parts in up to six process steps. Particular attention is paid to surface quality. Around 1,300 21

12 This paint shop is very environmentally-friendly because it uses cutting-edge technologies such as air recirculation, dry separation and exhaust air treatment. Modern application systems conserve resources. Robots in the paint shop: clear-coat exterior paint finish for an Audi Q2 body. people are employed at the press shops at the Ingolstadt site. Each day, they process roughly 1,675 metric tons of sheet metal, including 88 metric tons of aluminum, into 569,000 individual body parts. Like magic: The Ingolstadt body shops for the Audi Q2, Audi A3, Audi A4 and Audi A5 model series are cutting-edge production facilities featuring innovative manufacturing technologies and maximum flexibility. Reflecting the focus on efficiency and sustainability during their planning, they feature an automatic matrix lighting control system, photovoltaic systems for renewable power generation on the roof and energy consumption analyses. Direct collaboration between humans and machines is already a reality here: A robot helps with the application of bonded seams in the body shop. In this human-robot collaboration (HRC), the employee lays out the body parts and starts application of the adhesive. The Energy Productivity in Production employee training program, intelligent shutoff strategies and energy-efficient system components help to conserve energy. 3,450 employees and over 3,200 robots build car bodies with maximum precision at the Ingolstadt body shop. Innovative production technologies: At the assembly shop, roughly 8,000 people working in three shifts assemble around 2,400 Audi models each day, with no two cars alike each Audi is individual. The vision is to have the world s most efficient and sustainable premium assembly. At the assembly shop, the electronic quality check (eqp) serves to ensure that the high quality requirements are fulfilled. The electronic vehicle job card (ewbk) is also in successful operation. It displays on monitors exactly which component the employee needs for each car. Human-robot collaboration is also integrated into the A4/A5 assembly process: A new robot colleague works side-by-side with the employees without any safety fencing. The adhesive application with robot assistance process, or KLARA for short, assists with fitting large roofs. Due to the growing variety of models and variations, a new memory module that provides greater storage capacity has been installed on the A3/Q2 assembly line. Automated guided vehicles (AGVs) such as Paula represent a core technology of the intelligent digital factory, revolutionizing conventional production processes. The perfect finish: At the Ingolstadt paint shop, it takes several linked stages of manufacturing to make a vehicle body shine in one of 30 standard colors. Quality is always top priority, from cathodic electrocoating to base coats and clear coats. Every day, the roughly 2,500 paint shop employees ensure that innovative Audi designs of the Audi Q2, A3, A4 and A5 models gleam in all the right colors. The employees painting experience and intuition as well as a keen eye for detail are essential. Highly skilled young workers are trained on-the-job in the paint shop. Audi commissioned a new top coat paint shop at the Ingolstadt site in This is the future: Automated guided industrial trucks locate and move automatically using suitable sensors and control algorithms. They can be used flexibly for various workshops and routes

13 Punctual, flexible and efficient logistics Managing complexity with modern logistics is what makes model diversity in the plants possible. Ray AGV: Two parking robots autonomously transport finished Audi models to an intermediate area. From there, they organize and make these cars available according to their shipping destination so that logistics employees can load them onto railway freight cars. Logistics has become much more important in the automotive industry. The growing variety of models is increasing process complexity along the entire value chain. Logistics at Audi ensures that vehicle production and market supply are punctual and flexible, with short throughput times and small inventories. Because the variety of models in the plants requires mastering complexity, the principles of the intelligent, fully connected factory are already firmly established in logistics. Like at the airport: Audi Logistics at the Ingolstadt site has introduced Truck Quick Check In. This system directs the trucks delivering vendor parts and admits them to the plant according to priority. The truck control point functions like an airport control tower. The self-controlled delivery process is based on innovative geofencing technology. Smart logistics: Another new development is automated transport of parts and vehicles. Since January 2017, Audi has routinely been using automated guided industrial trucks for automated material handling in Hall B of the Logistics Center. Audi is also the world s first car manufacturer to combine traditional storage in a parts supermarket with automated guided vehicles (AGV). With this new way of order picking according to the goods-to-person principle, the parts are automatically retrieved and transported to a fixed picking station. Loading of vehicles has also been automated. Ray is a parking robot that picks up the new cars at a transfer station, sorts them by destination and marshals them for loading onto railcars. at the gate of the Audi site in Ingolstadt is the result of traffic studies and serves to attract important logistics functions and JIS systems suppliers. The advantages of the Logistics Center for Audi are supply reliability, the ability to master complexity and the reduction of logistics costs. Clever material delivery: Module suppliers fabricate their products just in sequence at assembly centers and are responsible for delivering them directly to the assembly lines. Electric tow tractors deliver the materials to them. The 30,000 square meter (322,917.3 sq ft) Hall B likewise houses a pre-assembly center. This is where Audi employees assemble cockpit and rear axle modules, in turn delivering them just-in-sequence to the production lines. In addition, 13 external suppliers and service providers currently supply Audi via the Logistics Center. The Logistics Center includes a Consolidation Center housing the CKD (completely knocked down) packaging plant. With short paths between logistics and production, the logistics areas close to the production line are ideal. History and facts: The Logistics Center, which opened in 1995, has two investors and owners: IFG Ingolstadt, a wholly owned subsidiary of the city of Ingolstadt, and LGI GmbH, a joint subsidiary of IFG Ingolstadt and AUDI AG. The 122-hectare site is home to 17 workshops with 486,000 square meters (5,231,260.5 sq ft). The Logistics Center creates new jobs and provides a boost to the economy of Ingolstadt. Just-in-sequence delivery to the Logistics Center: Fast information flow and short transport distances are important aspects of modern logistics. The location of the Logistics Center directly 24 25

14 Premium quality for the digital age quality assurance Quality is core area of expertise at Audi. Process-oriented quality management now focuses on digitalization. Audi customers and users have high expectations when it comes to the function, comfort and reliability of their car. The overall impression of quality provided by every Audi model is determined by the reliability of the vehicle functions, the precision of the suspension and the degree of perfection achieved in the gap sizes, as well as by the highest possible standards in materials, build quality and visual appeal. This is the task of Audi Quality Assurance at all plants worldwide. It follows the products using process-oriented quality management from development through production up to technical service and ongoing success in the markets. In the digital age, quality assurance also takes on additional and new tasks. With the goal of making a mark as the quality leader in the premium segment, the challenge is to validate the quality of alternative drives and assure the car s connectivity both with itself and with its environment. Another focal issue is automated driving, the reliability of which is crucial to customer confidence in the new technology. Digital methods and processes are increasingly used here. Quality assurance in the semiconductor laboratory: High-performance microelectronics are behind more than 80 percent of all innovations in the car. Aiming to create the virtual master jig: fully automated digitalization of a vehicle body in the photometry measuring cell. For example, engineers and technicians use tactile and, increasingly, optical measuring techniques on the master jig, which provides the zero-reference environment for the setup of all vehicle components. The findings from the datasets on vehicle bodies and interiors are fed into the development of a new model up to two and a half years before it goes into production. In the development phase, all different components are qualified together with the suppliers from electronic components to environmentally friendly paints or special glass for touch screens. The semiconductor laboratory the only one in the European automotive industry and the material technology laboratory allow specialists to analyze components and materials using, for example, scanning electron microscopes and computer tomographs. New Audi models are put through comprehensive road tests at an early stage. In the validation run in Quality Assurance, the customer perspective is the priority. It starts about six months before start of production. Pre-series vehicles are tested at temperatures ranging from minus 30 to plus 50 degrees Celsius (-22 to +131 F) at 17 stations worldwide in all climate zones. The teams increasingly employ digital scenarios to analyze complex data swiftly and thoroughly. In the acceptance road test, new models receive official whole vehicle release for series production. In the final inspection for the production line, at checkpoint 8, every Audi is subjected to a final examination by members of Quality Assurance. The Technical Service area serves as the bridge between Audi and dealerships. One core task is technical vehicle analytics worldwide, with a focus on steadily improving the methods employed. In the future, the integrated vehicle sensor system will be able to transform the car into an analytics tool with remote access providing the customer gives their consent. This also improves technical expertise at dealerships and unlocks an optimum service experience with a personal dimension for the customer

15 Economics and ecology in harmony environmental protection at Audi Audi is committed to the sustainable use of raw materials and resources for the conservation of the environment. Audi openly communicates about its environmental protection work and involves all employees in these activities. This allows the company to sustainably implement its environmental policy objectives. As a party to the fifth Bavarian Environmental Pact, AUDI AG provides an important contribution to environmental protection. On the road to sustainable mobility: It is essential that the environmental balance of a car during its entire life cycle is optimized before the first kilometer is driven. AUDI AG has set itself the target of reducing its specific emissions by 25 percent based on the 2010 level by the end of Beyond this, there are plans to lower emissions associated with the supply of energy at the German locations by 40 percent per reference unit by Audi is also pursuing its vision of manufacturing all vehicles made in Ingolstadt completely -neutral and with zero wastewater. Environmental protection also entails conserving resources. Using 2010 as the baseline, the Group is striving for a 25 percent improvement in the key environmental metrics for energy, fresh water, waste and volatile organic compounds (VOC) by the end of Quieter, cleaner and more efficient: Two modern plug-in hybrid locomotives are in use at the Ingolstadt site. They save up to 120 metric tons of emissions each year. For the period from 2018, it has defined a new target figure of 35 percent for the year Based on figures from 2010, the five metrics mentioned are to be reduced further, giving greater weighting to global factors such as energy and emissions. A car factory goes green examples at the Ingolstadt site: Using circulation systems: Audi has been operating a highly environmentally compatible paint shop at the Ingolstadt site since Dry separation of the paint particles, air recirculation and exhaust air treatment significantly reduce thermal energy and water consumption as well as CO2 emissions compared to conventional systems. Emissions of VOCs are reduced by over 90 percent. Water recycling: To save water, Audi has built a membrane bioreactor in Ingolstadt. Three treatment stages turn wastewater back into hygienically safe industrial water. In future, this will allow up to a third of fresh water to be saved in production. Green electricity: Audi started producing cars in Ingolstadt using only green electricity in early Audi Neuburg and Audi manufacturing in Münchsmünster are likewise run 100 percent on electricity generated from renewable resources. Audi Logistics pioneers climate protection: Since mid-2017, all rail shipments at the Audi Ingolstadt and Neckarsulm sites have been CO2-free, making Audi logistics traffic by rail entirely climate-neutral. Emissions-free locomotives: Two modern plug-in hybrid locomotives are used at Ingolstadt for shunting work. Photovoltaics: Audi has installed different photovoltaic modules at its headquarters in Ingolstadt to test innovative technologies. All together, the systems at the Ingolstadt site generate roughly 1,800 megawatt hours per year. Using waste heat: Since 2004, the Ingolstadt site has been supplied via district heating with waste heat generated at the municipal waste processing plant and since 2012 from a neighboring refinery. Around 70,000 megawatt hours of energy from waste heat were used in Sustainable building: Audi has received the Gold Certificate of the German Association for Sustainable Building for the sustainable construction of the customer building. Biodiversity: Audi has developed a comprehensive biodiversity concept for the site in Münchsmünster to create semi-natural habitats for a wide range of animal and plant species

16 Fall 2017: first day of work for around 550 apprentices and degree apprenticeship students for Audi at the Ingolstadt site

17 Top performance from top employees human resources A company is only as good as its employees. At Audi, human resources management goes far beyond hiring and supporting employees. short and long vacation periods. Support for women also plays an important role at Audi: The company is working to further increase the percentage of women employed by the Group, from apprentices through to upper management. As an attractive employer, Audi offers its employees a modern work environment, space for innovation and diverse possibilities for individual development with a high level of job security. Audi employees are actively helping to shape future topics such as electric mobility, digitalization and the Smart Factory. A central pillar of the corporate culture are the Audi leadership principles, which are based on trust and respect. Several recent rankings, such as the surveys carried out by trendence and Universum, document the high attractiveness of AUDI AG as an employer. Audi has taken numerous measures to ensure that employees remain fit and healthy into old age. The focus here is on prevention. Ergonomic working conditions were established in production and at the offices of the Ingolstadt site. Free health screening the Audi Checkup is available to all employees and plays a major role in the workforce s very good state of health. The company requires experts, especially in its innovation fields. Audi has a firm focus on its own development of talent: from supporting interns, PhD students and students preparing academic theses to degree apprenticeship programs. The Audi Group further increased its workforce in 2017 and now employs around 91,000 people worldwide, of which about 61,000 work at AUDI AG in Germany. Almost 44,000 people work at the Ingolstadt site. With more than 200 working hours models and the option of mobile working from any location, Audi is responding to the various life phases of its employees. The company is continually expanding the Audi Play Space childcare concept, which combines all activities relating to childcare. This includes places at nearby childcare facilities, flexible short-term childcare for children of employees at Ingolstadt s miedelhaus and programs for Career launch into the digital future: Mechatronics technicians learn how to use modern production equipment at Audi

18 Young recruits are the future training and development Welcome to Audi the company offers an array of possibilities for training and development. Training tomorrow s skilled employees is a key component. Around 800 young people began apprenticeships or degree apprenticeships at Audi in 2017, with around 550 of them located at the Ingolstadt site. Overall, more than 2,700 trainees are currently involved in vocational education within the company. Audi also allows many young people to combine practical training with a university course. The Focus Money magazine again declared Audi to be Germany s Best Apprenticeship Provider in the Car Manufacturers category in 2017 (published in Focus, no. 14, April 1, 2017). The range of apprenticeship vocations offered by Audi to young men and women is as diverse as the challenges and requirements in the automotive sector: from mechatronics technicians and production mechanics to model builders, warehouse logistics specialists and plant firefighters. Audi trains tomorrow s skilled employees in 20 vocations. In all apprenticeship vocations, Audi prioritizes mobile and digital learning. The brand with the four rings is the first automotive manufacturer to implement widespread use of tablet PCs as learning tools based on a stringent didactic plan. With this, Audi not only promotes individual responsibility and creativity among young people, but also focuses very specifically on IT and media competence. Audi is also active in training internationally. Apprentices can work and acquire important career experience during a threemonth stay abroad in Spain, Hungary or the United Kingdom, for example. The Audi Akademie is located centrally in the heart of Ingolstadt, near the Neues Schloss (New Castle). The percentage of female apprentices is high for the industry in 2017 it was at around 30 percent. Audi is highly interested in developing enthusiasm among girls and young women for careers in science and engineering before they select a study course or begin an apprenticeship with programs specifically tailored to young women and mentoring seminars for female students presented by women already working at Audi. The company s Girls Day and Girls for Technology Camp programs have proven highly successful. For prospective academics, Audi offers a wide range of ways to join the company: from preliminary and basic internships often completed before attending university to degree apprenticeships and internships as well as support during preparation of academic theses and doctorates. The topic of further training also has high priority at Audi. The dissemination and transfer of knowledge are more important than ever as tools for equipping employees to handle future issues such as digitalization and electric mobility. Audi Akademie is available to the employees of the Audi Group in all matters of competence development and practice-oriented training and education. The spectrum of subjects ranges from human resources development to personality and behavioral training as well as courses for technical qualifications and language skills

19 Audi experience including in culture and sport More than just an car manufacturer: Audi opens the door to creativity and supports top athletic performance. Audi has been sponsoring cultural activities for more than 50 years. The Audi Wind Philharmonic, a factory orchestra that arose from an employee initiative, was the starting point for the cultural involvement of Audi. Under the Audi ArtExperience banner, the company now brings together a diverse cultural program that ranges from cooperation with world-famous cultural institutions to own events in the region and valuable projects for young artists. In addition to involvement with the Salzburg Festival, the Audi Young Persons Choral Academy and Audi Summer Concerts offer genuine art and cultural experiences in the Ingolstadt region. The Audi Kunstraum (Art Space) has enhanced the Audi Forum Ingolstadt since As a founding member and supporter of the Ingolstadt Concrete Art and Design Foundation, Audi presents changing exhibitions of works by foundation artists and others to customers and employees. Audi Kunstraum (Art Space) in the Audi Forum Ingolstadt: Camill Leberer. Glanzstücke Aluminium und Papier ( VG Bild-Kunst, Bonn 2017 AUDI AG). Audi is partner to the Ingolstadt Triathlon; the German Championship will be taking place in Ingolstadt in On a regional level, Audi is active as a dependable sports sponsor. For more than a decade now, the brand has been a partner of the ERC Ingolstadt ice hockey club the 2014 German champions. Audi has a long-standing association with the soccer players of FC Ingolstadt 04 as principal sponsor. The home games of the Bundesliga team are played at the Audi Sportpark. Audi places special emphasis on youth development. For example, since the Audi Schanzer Soccer School was founded in 2009, more than 30,000 children have attended its holiday camps. And talented young players of FC Ingolstadt 04 and ERC Ingolstadt attend the Audi Sport Academy, which is a sports-oriented boarding school. In addition to these two clubs, Audi is also a partner of the MTV athletics department. Support is also provided for the Ingolstadt Dukes and a wide range of sports events that are held as Bavarian championships or that draw a high number of participants or spectators: the Ingolstadt Half-Marathon, for instance, as well as the Ingolstadt Triathlon, the Hagau Equestrian Days, the Ice Gala and the Night of Sports

20 Strong roots Audi is committed to the region Audi not only builds cars in Ingolstadt, but also recognizes its responsibility to the region. opportunity on the company intranet. Both Audi employees and nonprofit organizations from the region advertise volunteer projects here. In addition, Audi departments are regularly active in the context of team activities in social institutions. Audi employees also demonstrate social responsibility for the region through the annual Christmas fundraising campaign.the works council s annual appeal for donations at Christmas now goes back 40 years. Over 99 percent of Audi employees responded to this appeal in 2017 and together with the company donated a total of 715,000. With this money, support was provided to 106 projects of charitable and social institutions in Ingolstadt and the surrounding districts. Audi also supports various social institutions in the region according to its funding guidelines. There are also refugee aid projects at the production sites in Ingolstadt, Neckarsulm, Brussels and Győr. Audi currently has an involvement in multiple vocational school classes in Ingolstadt, where young adult refugees are prepared for obtaining a German school-leaving certification and therefore for vocational education in the region. Working together for a good cause: Audi supports its employees with volunteering in the region, for example at the Audi Volunteer Day in summer The principle of putting responsibility into practice is firmly anchored in the Audi strategy. As the largest employer in the Ingolstadt region, Audi aims to enhance the quality of life here and therefore regularly collaborates with the city, local companies, associations, and educational and social institutions. The company bundles community service activities and supports the volunteer efforts of its employees under the motto of Audi Volunteers. For example, the Ingolstadt site celebrated another Audi Volunteer Day in 2017, with Audi employees spending the day working in the region s social institutions. For the Give Time in Fall initiative, employees devote some of their spare time to helping in care institutions in the region. Audi employees who are interested in doing something to help others beyond the framework of such initiatives can find a suitable volunteering Audi supports classes for refugees: Students from places such as Eritrea and Afghanistan prepare together in Ingolstadt for German school-leaving certification, and also attend a road safety training day

21 Since 2012, AUDI AG has been cooperating with transport operator Ingolstädter Verkehrsgesellschaft GmbH (INVG). Residents in the region also benefit from the expansion of the bus network. The company is continually expanding its mobility services for employees. For example, the project to add a train stop directly at the site is now under way. This joint project of the city of Ingolstadt, the Free State of Bavaria, Deutsche Bahn and AUDI AG is aimed at relieving traffic congestion in the Ingolstadt region and provides improved mobility for Audi employees. The train stop is due to open in late Audi Summer Children: Children of employees test a giant soup ladle and whisks in the main kitchen at Audi Ingolstadt during the summer vacation program. Audi maintains intensive contacts with many universities. Research partnerships create ideal conditions for innovative solutions. Direct communication accelerates the knowledge transfer between research and industry. Audi currently collaborates with more than 50 research establishments worldwide. Audi also provides support to young academics: Approximately 125 PhD students are currently conducting research on science projects financed by Audi. Under the motto of Experiencing Science, Audi also promotes an accessible form of knowledge transfer for the interested public with its Science in dialog series of lectures. The series of lectures began in 2004 and has since attracted around 27,000 audience members. Audi cooperates closely with the schools in the region in order to support practice-oriented learning. Experts from Audi organize conferences and seminars for teachers and students and offer internships and factory tours. In addition, Audi supports young people who have not found an apprenticeship with programs for starter qualifications. Audi strengthens public transport in Ingolstadt: Four bus lines stop at multiple points on the plant premises

22 Audi production sites worldwide Germany 1. Audi in Ingolstadt Area: 2,737,500 square meters (29.5 million sq ft) Employees: 44,217 (as of: December 31, 2017) Production (2017): 538,103 cars Audi in Neckarsulm Area: Approx million square meters (13.4 million sq ft) (including Audi Böllinger Höfe) Employees: 16,955 (as of: December 31, 2017) Production (2017): 193,016 cars (including CKD) Europe 3. Audi in Győr 5 Asia 8. Audi in Changchun Site: FAW-Volkswagen Automotive Company Ltd., China Start of production: Production (2017): 467,468 cars Audi in Foshan 8 Site: AUDI HUNGARIA Zrt., Hungary Area: 5,167,366 square meters (55.6 million sq ft) Employees: 12,307 (as of: December 31, 2017) Production (2017): 1,965,165 engines, 105,491 cars 4. Audi in Brussels Site: AUDI BRUSSELS S.A./N.V., Brussels, Belgium Area: 540,000 m2 (5.8 million sq ft) Employees: 2,792 (as of: December 31, 2017) Production (2017): 95,288 cars 5. Audi in Martorell Site: SEAT, Spain Start of production: 2011 Production (2017): 114,372 cars 6. Audi in Bratislava 12 Site: FAW-Volkswagen Automotive Company Ltd., China Start of production: 2013 Production (2017): 85,191 cars 10. Audi in Aurangabad Site: Skoda Auto India Private Limited (SAIPL), India Start of production: 2007 Production (2017): 6,513 cars North America 11. Audi in San José Chiapa Site: Audi México S.A. de C.V., San José Chiapa, Mexico Start of production: 2016 Employees: 6,276 (as of: December 31, 2017) Production (2017): 158,543 cars Site: VOLKSWAGEN SLOVAKIA, Slovakia Start of production: 2005 Production (2017): 106,640 cars South America 7. Audi in Kaluga Site: Volkswagen Group RUS, Russia Start of production: 2013 Production (2017): cars 12. Audi in Curitiba Site: Volkswagen do Brasil Indústria de Veículos Automotores Ltda., Brazil Start of production: 2015 Production (2017): 5,159 cars 42 43

23 Each year Klenzepark, in the center of Ingolstadt, hosts the popular open-air classical music concerts during the Audi Summer Concerts series. Thousands of visitors take the opportunity to enjoy music over a picnic on a summer s evening. In summer 2017, performers included the Audi Wind Philharmonic and the Georgian Chamber Orchestra Ingolstadt

24 Audi models Fuel consumption and emission figures Models in Ingolstadt: fuel consumption * Audi Q l /100 km g/km Audi A l /100 km g/km Audi A3 Sportback l /100 km g/km Audi S l /100 km g/km Audi A5 Sportback g-tron Audi S3 Sportback l /100 km g/km Audi RS 3 Sportback l /100 km g/km Audi A l /100 km g/km Audi A4 Sedan l /100 km g/km Audi A4 Avant l /100 km g/km Audi A4 allroad quattro l /100 km g/km Audi S4 Sedan l /100 km g/km Audi S4 Avant l /100 km g/km Audi RS 4 Avant 8.8 l /100 km g/km Alternative drives in Ingolstadt: Audi A3 Sportback e-tron Audi A3 Sportback g-tron fuel consumption * l /100 km l /100 km CNG consumption: g/km g/km (CNG) g/ km (gasoline) kg/100 km energy consumption: kwh/100 km Audi A5 Sportback l /100 km g/km Audi A5 Coupé l /100 km g/km Audi S5 Sportback l /100 km g/km Audi S5 Coupé l /100 km g/km Audi RS5 Coupé 8.7 l /100 km 197 g/km Audi A4 Avant g-tron Audi A5 Sportback g-tron l/100 km l/100 km g/ km (CNG) g/ km (gasoline) g/ km (CNG) g/ km (gasoline) kg/100 km kg/100 km 46 47

25 Models in Neckarsulm: fuel consumption * Models in Györ: fuel consumption * Audi A4 Sedan l /100 km g/km Audi A5 Cabriolet l /100 km g/km Audi S5 Cabriolet l /100 km g/km Audi A6 Limousine l /100 km g/km Audi A6 Avant l /100 km g/km Audi A6 allroad quattro l /100 km g/km Audi S6 Limousine l /100 km g/km Audi S6 Avant l /100 km g/km Audi RS6 Avant 9.6 l/100km 223 g/km Audi RS6 Avant performance 9.6 l /100 km 223 g/km Audi A7 Sportback l /100 km g/km Audi TT Coupé l /100 km g/km Audi TT Roadster l /100 km g/km Audi TTS Coupé l /100 km g/km Audi TTS Roadster l /100 km g/km Audi TT RS Coupé l /100 km g/km Audi TT RS Roadster l /100 km g/km Audi A3 Sedan l /100 km g/km Audi A3 Cabriolet l /100 km g/km Audi S3 Sedan l /100 km g/km Audi S3 Cabriolet l /100 km g/km Audi RS 3 Sedan l /100 km g/km Audi S7 Sportback 9.3 l /100 km 215 g/km Audi RS 7 Sportback 9.5 l /100 km 221 g/km Audi A l /100 km g/km Audi A8 L l /100 km g/km Audi A8 L W12** l /100 km g/km Models in Martorell: fuel consumption * Audi Q l /100 km g/km Audi RS Q l /100 km g/km Audi S8** l /100 km g/km Audi S8 plus** 10.0 l /100 km 231 g/km Models in Bratislava: fuel consumption * Audi R8 Coupé l /100 km g/km Audi R8 Spyder l /100 km g/km Audi Q ,5 l /100 km g/km Audi SQ l /100 km g/km Models in Brussels: fuel consumption * Audi A l /100 km g/km Audi A1 Sportback l /100 km g/km Alternative drives in Bratislava: Audi Q7 e-tron fuel consumption * l /100 km CNG consumption: g/km energy consumption: kwh/100 km Audi S l /100 km g/km Audi S1 Sportback l /100 km g/km Audi Q7 e-tron quattro l /100 km g/km kwh/100 km 48 49

26 Models in Kaluga: fuel consumption * Models in San José Chiapa: fuel consumption * -Emissionen kombiniert * Audi Q l /100 km g/km Audi Q l /100 km g/km Audi SQ l /100 km g/km Alternative drives in Kaluga: Audi Q7 e-tron quattro fuel consumption * l /100 km CNG consumption: g/km energy consumption: kwh/100 km Models in Curitiba: fuel consumption * Audi A3 Sedan l /100 km g/km Audi Q l /100 km g/km Models in Changchun: fuel consumption * Audi A4 L Audi A6 L Audi A6 L e-tron These models are available exclusively for the Chinese market. Audi Q l /100 km g/km Audi Q l /100 km g/km Models in Foshan: fuel consumption * Audi A3 Sportback l /100 km g/km Audi A3 Sedan l /100 km g/km Models in Aurangabad: fuel consumption * Audi A3 Sedan l /100 km g/km Audi A4 Sedan l /100 km g/km Audi A6 Sedan l /100 km g/km Audi Q l /100 km g/km Audi Q l /100 km g/km Audi Q l /100 km g/km * Fuel consumption and emission figures given in ranges depend on the tires/wheels used. Further information on official fuel consumption figures, the official specific emissions and the energy consumption of new passenger cars can be found in the Guide on the fuel economy, emissions and energy consumption of all new passenger cars models, which is available free of charge at all sales dealerships, from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Straße 1, Ostfildern, Germany and at ** These models were only in production until

27 AUDI AG Sites Communications I/GP-U Ingolstadt Germany Status: March 2018 Printed in Germany

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