Investor Visit, Credit Suisse, Ingolstadt, 19 May 2009 Impact of the climate change discussion on the Dr. Guido Haak Central Functions/Processes, Product Management, AUDI AG
Facts regarding CO 2 and the automobile The public discourse Impact on the Summary
CO 2 emission = fuel consumption 1l Gasoline 1l Diesel 2.4 kg CO 2 (Gasoline) 2.7 kg CO 2 (Diesel) Conversion factor consumption - CO 2 Gasoline: 1 l/100km = 24 g/km CO 2 Diesel: 1 l/100km = 27 g/km CO 2 120 g/km = 5.0 l/100km 120 g/km = 4.5 l/100km
50% of fuel consumption represents avoidable losses Overcoming of external driving resistances 12% - weight (Inertia) 11% - aerodynamic drag 8% - aircon, cooling, electrics Losses Ideal energy conversion 19% - powertrain: transmission, tires, wheel bearings, power steering pump 19% - engine: friction, charge changing combustion process 31% - engine: conversion of chemical into mechanical energy
Significant efficiency increase in road transport Traffic volume people/freight, CO 2 emissions 1990 = 100 People km traveled Tons km (freight) CO 2 emissions
Automotive industry has only limited leverage Share of greenhouse gases* Share of regions in CO 2 emissions worldwide Share of industry sectors in German CO 2 emissions Others - Methane - CFC - Nitrousoxide 36% RoW 48% Industry, trade 25% 13% Private households China 14% CO 2 64% USA 24% Rest EU 9% UK 2% 3% *w.r.t. anthropogenic greenhouse gases, i.e., man-made Germany 43% Power and heat plants 7% 12% Passenger cars Remaining traffic Passenger car traffic in Germany has a share of 0.2%, in the EU of 1.4% in anthropogenic greenhouse gas emissions
Facts regarding CO 2 and the automobile The public discourse Impact on the Summary
Issue #1: National regulation differs National interests are different and always will be and motivate diverse regulations and incentive systems Industry politics Technologies Local environment/ pollutants Resource politics Focus of regulation Environmental politics Mobility Global environment/climate
Issue #2: Contradictory approaches at all levels EU European fleet targets for CO 2 emissions Code of conduct for certain vehicle concepts CO 2 labelling Green Procurement (environmental-friendly cars) Eco-consumer-rating on basis of life cycle assessment (production, use, disposal) Länder Länder Countries CO 2 based annual vehicle taxes Registration and import taxes National CO 2 labelling Städte Cities Diverse local regulatory policies in cities and communities on basis of CO 2 and pollutants, e.g., Toll systems Parking fees Ban from inner cities Local fleet requirements
More challenges than climate change Responsibility for our customers Social responsibility Cost of ownership Climate change Technical and traffic laws Brand claim: Vorsprung durch Technik Use of resources Safety Pollutant reduction
Customer behavior does not follow the public discussion Buying reasons in the EU, Germany and USA 2007 1. Reliability 2. Safety 3. Value for money Premium segment: Design beats environment 4. Total cost of ownership* 5. Environmental friendliness 6. Design/Styling 7. Good relationship with dealer/service station 8. Brand/prestige *Purchasing price, taxes, insurance, consumption, service
Integrated approach necessary to reduce CO 2 in an economically sensible way Vehicle measures CO 2 emissions of a single passenger car in normed cycle Infrastructure Reduced CO 2 emissions through improved traffic control Alternative fuels CO 2 reduction by generation and consumption of alternative fuels Driver behavior Assistance systems and training to reduce CO 2 emissions in real driving cycle Regulation of CO 2 emissions must follow a holistic approach
Facts regarding CO 2 and the automobile The public discourse Impact on the Summary
Implications of discussed and implemented political measures Short-term (next 12-24 months) Support for Diesel share in Europe Shift to smaller cars/smaller engines Higher share of low consumption concepts Increase in total cost of ownership for the customer Expensive technology will be partially priced Higher maintenance cost for complicated technology Long-term (next 5-10 years) Lead time 4-7 years Risk of stigmatisation of vehicle segments (e.g., SUV) Permanent shifts in competition Diesel share uncertain due to increasing emission standards (EU6) and fuel price development
Facts regarding CO 2 and the automobile The public discourse Impact on the Summary
Summary Climate and CO 2 discussion is here to stay for the automotive industry Car buyers all over the world expect the industry to provide climate friendly solutions which cost nothing and allow them not to change their behavior The automotive industry will provide solutions to a certain extent but not immediately and only at additional cost Disturbances are generated in this process by contradictory regulation from regional, national and international politics as well as by a public discussion not based on facts
Dr. Guido Haak Central Functions/Processes, Product Management, AUDI AG
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