100 years of Audi
July 16, 2009
German Chancellor Angela Merkel is to be the keynote speaker at the gala at Audi's headquarters in Ingolstadt, near Munich, on Thursday. The event is to kick off four days of celebrations, which are to include a concert by Lang Lang (on a new piano designed by Audi!), a performance of Beethoven's Ninth, and an open-air concert by the German band Die Fantastischen Vier (The Fantastic Four).
One reason for choosing the band will have been that its name will remind the audience of the famous four rings which make up the company logo.
Overshadowed by squabble
But it's an awkward time for a celebration. Not only is the motor industry suffering from one of its deepest crises, but the main shareholders in Audi's parent company, Volkswagen, are squabbling over the future of the company. The Porsche and the Piech families are expected to meet at the gala, and all eyes will be watching for hints of future developments. Some observers are suggesting that Chancellor Merkel could drop a well-chosen word in their ears.
It's not the first time things have been tough for Audi. The company was started in 1909 by the engineer August Horch when he left the firm he himself had founded under the name Horch & Cie 10 years earlier. Originally the new company bore his name as well, but he lost a court battle and Horch had to find something new.
A friend came up with the idea of using the Latin translation of his name, which means "listen" in German. So Audi was born.
The company immediately made a name for itself, winning the international Austrian Alpine Rally three times running. Audi introduced modern technology, such as the aluminum motor block, and, in 1921, was the first company to offer a car with the steering wheel on the left instead of in the middle.
But the global economic crisis of the thirties led to a merger in 1932 with three other companies, and that gave rise to the four-ring logo.
Starting once more
After the war, Audi's plant was in Germany's Soviet-occupied zone, so Audi started up again in Ingolstadt, initially just making spare parts for their existing customers. In the fifties, it was taken over by Daimler-Benz, which then sold it to Volkswagen in 1965. VW built the Beetle there, and refused to let Audi build its own cars, but Audi's chief engineer, Ludwig Krauss, worked in secret to develop the Audi 100, which was launched in 1968.
Since then, the company has become one of the industry leaders, introducing innovations such as aluminum bodywork or the Quattro four-wheel-drive. Its slogan "Vorsprung durch Technik" ("advance through technology") became the only German which many non-Germans knew. And it's turned itself into a serious competitor for the two German premium brands, Mercedes and BMW.
It's currently doing better than they are in dealing with the crisis. Partly because it is not so exposed to the collapsing US market and because it's well-positioned in Asia, the fall in its sales has been gentler.
CEO Rupert Stadler says, "While the world market fell 21.3 percent from January to March, and the premium market fell up to 30 percent, Audi suffered a drop of 16.4 percent. So we're doing better than our main competition."
Environmental sinner
One area where it's not doing as well as the competition is in its environmental balance. Greenpeace describes Audi as having a "lead-footed mentality," with over-motorized models averaging even worse carbon dioxide emissions than the other premium brands.
Audi points to its forthcoming A1 model, which will substantially lower the average.
Audi is well positioned for the future, partly because of its position in the VW concern. It's able to benefit from the synergies of the group, with productions facilities being shared through the world. Some of its models are built on the basis of its sister companies' products.
But for now, as it celebrates its centenary, Audi will have to be content with the achievement of not doing quite as badly as the others.
Taufig Khalil/Michael Lawton
Editor: Chuck Penfold