FAW-Volkswagen Automotive Co., Ltd.

Transcription

1 Joachim Wedler 1 st Vice President of FAW-Volkswagen Automotive Co., Ltd. FAW-Volkswagen Automotive Co., Ltd. Analyst/Investor Conference Shanghai, 24 May

2 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 2

3 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 3

4 Changchun as the Home of FAW-Volkswagen Changchun Changchun is the capital city of Jilin Province with 6 districts and 4 counties. The Palace for China s last Emperor is located in Changchun. Land Area: 20,571 km² Population: 7.13 million and 38 nationalities 4

5 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 5

6 History of FAW-Volkswagen Joint Venture Contract On November 20 th, 1990 the Joint Venture Contract was signed in the Great Hall of the People between VW AG and FAW Group. On December 1 st, 2003, FAW Group and VW AG signed a Memorandum of Understanding in Beijing, extending the term of the FAW-VW Joint Venture Contract by 25 years till February 6 th,

7 History of FAW-Volkswagen Car Plant II - Opening On December 7 th, 2004 Car Plant II was established and started production. Gerhard Schroeder - German Chancellor and Mr. Zeng Peiyan Vice Premier of China State Council took part in the Ribbon-Cutting Ceremony. 7

8 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 8

9 Key Data FAW-Volkswagen Product Portfolio of Brand Volkswagen GOLF CADDY BORA SAGITAR 9 JETTA

10 Key Data FAW-Volkswagen Product Portfolio of Brand Audi AUDI A4 AUDI A6L 10

11 Key Data Sales Volume since units > F Sales to Dealers 11 Deliveries to Customers

12 Key Data Productivity and headcount Productivity will improve through various measures of the Olympic programme : - Higher production - Process optimisation in the factory 12

13 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 13

14 4. Olympic Program VW China: Implementation at FAW-VW Branding/ Positioning Product The strongest market portfolio within China new models until end of 2009 Costs Capacity Sales & Marketing Corporate Culture Competitive cost structure Capacity utilization > 90% Best in class sales network and evaluation of users Speeding up of decision processes local management 14

15 Olympic Program FAW-Volkswagen Products of Volkswagen Brand Every year one new product Higher positioning New product Bora Golf Jetta Caddy Sagitar New product New product

16 Olympic Program FAW-Volkswagen Products of Audi Brand Every year at least one new product Audi A4 Import Audi A6L Audi Q7 Audi TT Audi A8L (Import) Audi Cabrio Audi A5 Coupe

17 Olympic Program FAW-Volkswagen Material Cost Reduction (VW Brand Target) Material Cost / Car Substantial cost reduction measures are underway. 12/ / / / /

18 Overview 1. Changchun as the Home of FAW-Volkswagen 2. History of FAW-Volkswagen 3. Key Data FAW-Volkswagen 4. Olympic Program FAW-Volkswagen 5. Audi the Premium Brand in China 18

19 Audi The Premium Brand in China Sales Volume without Imports units > F Sales to Dealers 19 Deliveries to Customers

20 Audi The Premium Brand in China Volume Comparison with Major Competitors Volume incl. Import 53,152 58,127 19, Q

21 Audi The Premium Brand in China Development of Dealer Network F 21

22 Audi The Premium Brand in China Development of Dealer Network 120 exclusive dealers with clearly differentiated appearance within Audi corporate style Audi has the most advanced dealer network of premium brands 22

23 Audi The Premium Brand in China Dealer Standards 30m 2 show room space per new vehicle Contractually defined No. of Demo -, Replacement- and showroom cars Exclusive Audi corporate architecture and corporate identity Audi is the first brand to have exclusive used car standards and facilities Permanent training of dealer staff is key to Audi s success Constant measurement of customer satisfaction through Dealer Image Analysis and Mystery Shopping 23

24 Audi The Premium Brand in China Audi Brand Image [ Ranking by J.D.Power ] CSI SSI Year Ranking Ranking Target 1 1 CSI - Customer Satisfaction Index SSI - Sales Satisfaction Index 24

25 Joachim Wedler 1 st Vice President of FAW-Volkswagen Automotive Co., Ltd. FAW-Volkswagen Automotive Co., Ltd. Analyst/Investor Conference Shanghai, 24 May

26 Disclaimer This presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as expects, anticipates, intends, plans, believes, seeks, estimates, will or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling and the yen. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.