Road map E: Audi in the era of electric mobility > 2019 > Audi China

Road map E: Audi in the era of electric mobility

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Road map E: Audi in the era of electric mobility

Ingolstadt, October 7, 2019 – Audi is transforming into a provider of electric mobility—a
process that involves all areas of the company. After all, the brand with the four rings
intends to put more than 30 electrified models on the market by 2025, which constitutes a
40 percent share in sales. In doing so, Audi is consistently pursuing the path of sustainable
mobility. Accordingly, the areas of Procurement and Production are also aligning themselves
more strongly with sustainability-related criteria. The skills and experiences from the
development and production of the Audi e-tron* will be incorporated into the upcoming
projects for the all-electric models. The activities are flanked by comprehensive training and
development concepts.

Consistently electric

Audi is becoming a provider of integrated, carbon-neutral premium mobility with the goal of
taking the leadership role in the competition. To this end, the manufacturer is accelerating its
electrification road map and company-wide decarbonization. By 2025, the carbon footprint of
the vehicle fleet across the entire life cycle is to be reduced by 30 percent as compared to
2015. In the future, the return on investment as the central financial control parameter will
also show the CO2 performance of the four rings, with sustainable management helping to
increase it to more than 21 percent.

In the context of the Volkswagen Group’s consistent focus on electric mobility, the four rings
are taking a targeted approach to aligning their drive portfolio with the specific requirement
profiles of premium customers. With a considerable portion of large vehicle segments, the
corresponding power requirements and frequent use for long-distance journeys, Audi is relying
on plug-in hybrid drives in addition to all-electric vehicles.

Consistently customer

Modern premium customers are increasingly placing their focus on sustainable mobility. It is
therefore a consistent step to make electric mobility one of the central cornerstones of the
new brand strategy. Audi will reserve 50 percent of its marketing budget for topics relating to
electric mobility in the future. The company aims to provide its customers with a stronger
emotional experience with the new drive type, dispel any reservations and spark enthusiasm.
The company podcast “The Future Is Electric,” which is now already on its second season and
recently won the “World Media Award” in the “Automotive” category, is a successful example
of this approach. Audi also started a new chapter for the market launch of the e-tron* at the
beginning of 2019 with a walk-on meteorite at Munich Airport. Visitors had the opportunity to
spontaneously experience the new model and the Audi brand on more than 20,000 test drives.

The brand’s trade partners all over the world are crucial ambassadors of the new technology.
In order to get their businesses ready for the e-tron*, the dealers have already been installing
the suitable charging infrastructure for many months. Audi has trained more than 9,500
international dealership employees for the market introduction of the Audi e-tron*. In order to
ensure optimum service, the brand with the four rings is relying on innovative virtual reality
(VR) technology: Service technicians in more than 40 markets are using a specially developed
VR training course to familiarize themselves with the details of the high-voltage battery in the
Audi e-tron*.

* The fuel consumption values of all models named and available on the German market can be found in the list provided at the end of this MediaInfo.

Aside from the product itself, experiencing the brand is becoming increasingly important for
premium customers. This applies for electrified models in particular, as the ecosystem of the
vehicle plays a decisive role here. The company is therefore offering its customers the Audi etron
Charging Service. It provides access to around 80 percent of all charging stations in
Europe—more than 110,000 public charging points in 20 EU countries that are operated by
220 providers. Whether AC or DC, 11 kW or 150 kW—a single card is all customers need to
start the charging process. Billing is automatic via the user account. With the new Plug &
Charge function that will be released shortly, the Audi e-tron* authorizes itself at the charging
terminal via cryptographic processes automatically and activates it.

To charge their vehicles at home, Audi customers can supply their homes and garages with
“Volkswagen Naturstrom”, which is generated from 100% renewable energy sources. If
desired, the local Audi service partner will send an electrician to check the power supply in the
customer’s garage and install a charging connection.

The optional charging system connect, which can fully charge the battery of the Audi e-tron* in
just over four hours, provides intelligent functions in connection with a home energy
management system: The Audi e-tron* can be charged with the maximum power available
while taking the needs of other consumers in the household into consideration to avoid
overloading the power supply of the home. Customers can also define individual priorities,
such as charging when electricity is less expensive. If the home is equipped with a photovoltaic
system, the car can be charged primarily using the electricity generated by the system, and the
charging management even considers forecast phases of sunshine.

Cross-brand goal: a comprehensive charging infrastructure

From the customer’s garage and the cooperation with Ionity to the entire power grid: The
Volkswagen Group founded the European direct current fast charging network Ionity together
with Audi and Porsche, BMW, Daimler and Ford in 2017. By 2020, there are to be 400 highpower
charging (HPC) stations no further than 120 kilometers (74.6 mi) apart in 25 countries.
In addition to its involvement in the Ionity group, Audi is also carrying out initial model tests of
development and partnerships for offerings with energy groups and public utility companies in order to offer BEV customers a reliable and comprehensive mobility offer with the supply of
green energy. Charging management that supports the local network rather than overloading
it is an important element in Audi’s electric mobility ecosystem. Together with energy
suppliers and energy service providers, the brand is investigating the potential of intelligent
home networks and “smart grids” that will turn the e-tron* models into players on the field of
the energy transition. An initial model test has already yielded promising results, including
with a view to the customer’s cost calculation.

* Fuel consumption and CO2 emission figures given in ranges depend on the tires/wheels used as well as the selected equipment

Sustainability along the value chain

With its company-wide sustainability road map, Audi has set itself the goal to successively
decarbonize the entire vehicle life cycle, from the supply chain and production to the use and
utilization of the Audi models.

Furthermore, Audi has a clear mission to achieve company-wide carbon neutrality on balance
by 2050.

The supply chain plays a crucial role in Audi’s sustainability road map, especially when it comes
to electric cars. The company is therefore intensifying its efforts to enter into a dialog with its
partners with the aim of jointly reducing the CO2 emissions along the entire value chain
considerably. At the end of 2018, Audi launched the CO2 program in Procurement and has
since carried out more than 30 CO2 workshops with suppliers. The first results show that the
partners can reduce emissions in particular by closing materials cycles and using green
electricity and a larger amount of secondary material and recyclates. Initially, the focus is on
parts that involve particularly energy-intensive production. These include, for example, HV
batteries and aluminum components. Audi is therefore already demanding that its battery cell
suppliers use green electricity in cell production and has anchored this requirement in its
specifications.

The premium carmaker is also campaigning for the sustainable treatment of aluminum. Audi
was the first automotive manufacturer to be awarded the “Performance Standard” certificate
by the Aluminium Stewardship Initiative, which has created a comprehensive sustainability
standard, in October 2018. It certifies that the aluminum components of the battery housing
in the Audi e-tron* are manufactured and installed in accordance with the ASI sustainability
requirements. Audi also intends to enter into targeted cooperations with partners who are also
certified by the ASI. For example, aluminum manufacturer Hydro has already been supplying
sustainable, ASI-certified aluminum for the battery housing of the first fully electric Audi
model since July 2019. As of the end of 2019, Hydro will supply only aluminum sheets that are
certified by ASI for the Audi e-tron*.

In addition, Audi is reducing the CO2 emissions when using aluminum by reusing the material
in accordance with the circular economy principle. The company already introduced an
“Aluminum Closed Loop” at the Neckarsulm location back in 2017. The aluminum sheet
offcuts that are produced in the press shop are sent straight back to the supplier, who recycles them. Audi then reuses these reprocessed aluminum sheets in its production process. In doing
so, Audi saved around 90,000 metric tons of CO2 in 2018 alone—30 percent more than the
previous year. As of 2020, Audi will gradually roll out the Aluminum Closed Loop in other
plants.

* Fuel consumption and CO2 emission figures given in ranges depend on the tires/wheels used as well as the selected equipment

In order to ensure sustainability in the supply chain with even greater efficiency, the brand with
the four rings already introduced a sustainability rating in 2017. It is used to assess whether
the supplier adheres to social and environmental standards. In addition to a self-disclosure,
the rating can also perform an on-site check. Since July 2019, the sustainability rating (S
rating) has also included a compliance check. The S rating has also been a mandatory contract
award criterion since then. This means that suppliers will receive an order only if they verifiably
meet specific social, environmental and compliance standards. The rating will be rolled out in
the entire Volkswagen Group.

Audi is also involved in various initiatives, thereby campaigning for the preservation of human
and environmental rights in the supply chain together with other partners. For example, Audi
is a member of the Global Battery Alliance. It is concerned with the protection of human rights
and social standards for the mining of raw materials for batteries and develops solutions for
the reuse of lithium-ion batteries.

Carbon-neutral production

Audi also considers the carbon-neutral production of electric cars to be an important element
of sustainable mobility. The Brussels plant plays a pioneering role here: It has already been
carbon-neutral since the start of production of the Audi e-tron*. This was achieved by
converting to green electricity, a step that the location already took in 2012, and by installing
the largest photovoltaic system in the region. The Audi plant in Brussels meets its heating
requirements with certificates for biogas. Overall, the plant saves up to 40,000 metric tons of
CO2 emissions per year by using renewable sources of energy. The measure package is rounded
off by compensation projects for emissions that cannot yet be avoided. The company is now
rolling out this strategy comprehensively: By 2025, all Audi plants are to be completely
carbon-neutral.

Reuse and recycling of batteries

Audi and Volkswagen are already in the process of developing concepts for handling used highvoltage batteries. If a battery has lost a certain percentage of its charging capacity over the
course of several years, it can still be used for a stationary application. Among the many
available possibilities here, Audi is currently testing two as part of pilot projects: use in forklift
trucks and tractor units at the main plant in Ingolstadt and use of the batteries as stationary
energy storage on a campus in Berlin.

The first phase of a strategic research cooperation, as part of which Audi and Belgian recycling
and materials technology specialist Umicore developed a closed circuit for the elements of HV batteries, has already been completed. The aim is to salvage valuable materials such as cobalt
and nickel and use them in new HV batteries.

* Fuel consumption and CO2 emission figures given in ranges depend on the tires/wheels used as well as the selected equipment

Maximum flexibility: the production of the electrified models

The brand with the four rings entered the electric era with the start of production of the Audi etron* in the Brussels plant. The tradition-steeped production site was first extensively
modernized and is now one of the most modern production sites for electric models in Europe.
The electric drives are supplied by Audi’s own engine production plant in Győr, and the Brussels
location has set up its own battery manufacturing facility. Many experiences from the
production of the e-tron* in Brussels are now being incorporated in the new BEV projects and
the establishment of further production sites for electric vehicles.

For the production of future electric models, Audi is relying on a high level of flexibility and
valuable synergies within the Group: For example, the PPE platform (Premium Platform
Electric) for the large electric cars was developed in cooperation with Porsche. The aim is to
produce the PPE models at existing locations. The vehicle concept is based on the standardized
plant structures and can be transferred to other factories quickly.

Audi is also relying on synergy effects for the smaller models on the basis of the MEB platform
(modular electrification platform): The production model of Audi Q4 e-tron copncept, an
electric SUV in the A segment, will roll off the assembly line at the Volkswagen plant in
Zwickau, together with models from the VW and SEAT brands. Bundling the platforms in
production this way enables the future large-volume electric models to be produced in large
quantities and with great efficiency. The most important parts of the MEB models are made in
the Group’s component plants, mainly in Kassel (drive modules), Salzgitter (electric motor
parts) and Brunswick (batteries and suspension parts).

Preparations for the production model of Audi e-tron GT concept, which will roll off the
assembly line in the Böllinger Höfe near Neckarsulm together with the Audi R8 as of the end of
2020, are also already underway. While the high-performance sports car with a combustion
engine is still made predominantly by hand, the electric Gran Turismo is to be manufactured
with a higher degree of automation in the body shop. Both models pass through the same
assembly, which is currently being expanded by 20 cycles to 36 cycles, as well as an overhead
conveyor. Specific electric elements of the vehicle, such as the battery system, the drive or the
thermal management, are prepared in special pre-assemblies and installed on the assembly
line as a finished module.

The plug-in hybrids are produced in the same locations as their respective product lines: For
example the Audi Q5 TFSI e* in San José Chiapa (Mexico) and the Audi A7 TFSI e* in
Neckarsulm. Audi is currently making two electrified models in local production in China: the
A6 L e-tron and the Q2 L e-tron; the Audi e-tron will follow as of 2020.

* Fuel consumption and CO2 emission figures given in ranges depend on the tires/wheels used as well as the selected equipment

With the flow: Bringing the employees along on the way to e-mobility

Audi is also making extensive investments in electric mobility in the Human Resources area.
The company is bringing further experts on board while also expanding its internal expertise
and getting the Audi employees ready for this field of the future. For example, the budget for
further education was increased by just over one third, from EUR 60 million to 80 million per
year.

Together with Technische Hochschule Ingolstadt (Technical University of Ingolstadt, THI), Audi
has designed a training course in electric mobility for powertrain developers. Audi engineers
are expanding their knowledge in the field of electric mobility in the THI auditorium. The aim is
to enhance their strategic and technical skills. Specialists and education experts from the
automotive manufacturer worked together with professors from THI and tailored the in-service
qualification specifically to the company’s requirements. On-site events and self-learning
phases alternate over a period of three-and-a-half months. The timetable for the Audi
powertrain developers includes modules such as “electric motors and performance electronics”
or “concepts of electrified vehicles and energy storage.” The first participants from powertrain
development completed the training at the beginning of 2017.

Audi is also making a consistent move toward electric mobility in its youth talent programs. For
example, the company is constantly adapting its training to technological progress and
developing new job profiles when necessary. The job profile “Qualified electrician with a focus
on system and high-voltage technology) was introduced in 2014. Since then, roughly 700
young men and women have started or completed this three-year apprenticeship at the
locations in Ingolstadt and Neckarsulm. After completing the apprenticeship, they usually
work in different areas of production, for example in data analysis, or they apply their skills in
one of the Technical Development or Pre-Series Center workshops. The new qualification
“Qualified electrician for battery technology” was introduced in 2018. Here, the focus is on the
production and quality assurance of high-voltage batteries. No matter whether it is an
apprenticeship or further training whose course is set for electric mobility: The international
Audi locations are always on board, too, and the special training and development offers are
adapted to country-specific features as necessary.

Contact:

Franziska Queling
Corporate Communications
Email: Franziska.Queling@audi.com.cn

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