After 158 days, Formula E will restart its sixth season on August 5. Never before has there been such a long-time gap between two races. The last appearance was the Marrakesh E-Prix on February 29, the fifth race of the season, then the COVID-19 pandemic prevented all of the subsequent events. The series will now continue with a very compact schedule: Formula E will be running six races within roughly one week at the former airport in Berlin. The three “double headers” will run on August 5/6, 8/9 and 12/13 and will be held on different track variants without spectators. To ensure the health of all the teams and employees and to meet all of the official requirements, Formula E has developed a comprehensive safety concept in conjunction with German authorities.

Audi has prepared itself well for the second half of the season: René Rast will take over the cockpit from Daniel Abt. Rast joined Audi in 2009 and has won two DTM drivers’ titles, the first in 2017 and the second last year. The 33-year-old German already has some limited Formula E experience: In 2016, he raced in the Berlin E-Prix for another team, however that event was held on a street circuit downtown.

“I’ve been following Formula E very closely for a long time and am now looking forward to this new challenge,” says René Rast, who also has respect for the jump into the new series. “The demands on the drivers in Formula E are high: In addition to pure speed, it’s also a question of efficiency, battery management and the perfect strategy – and all of this on tight city circuits, where things are usually quite turbulent.”

For Head of Audi Motorsport Dieter Gass, René Rast is the perfect line-up for the vacant Audi e-tron FE06: “As a two-time DTM Champion and long-time Audi driver, René was naturally on the shortlist from the very beginning. In the past, he has often proved how fast he is in a new series without having to get used to it,” says Gass. “It’s nice that there are no overlaps between DTM and Formula E so that René can compete in both series for us. With six final races in Berlin, our team still has everything to play for in the championship.”

Ali Al Nabooda, General Manager of Audi Al Nabooda Automobiles commented  “We are looking forward to seeing our loyal customers again and to meeting new customers too now that our showrooms are fully operational. We are of course adhering to the social distancing, sanitization measures and compulsory mask regulations and our e-commerce platform is also making the lives of our customer easier and safer with online test drive booking”

The June Summer Campaign will also offer the option for cars to be delivered directly to customer homes upon request. In line with the health and safety directives issued by all countries in the Middle East, all vehicles are fully sanitized before being delivered.

Carsten Bender, Managing Director of Audi Middle East commented “I have been personally moved and inspired by the skill and patience that these women put into the production of each bar of handmade Sitti Soaps to create such a beautifully crafted necessity.” He continued “During these turbulent times of COVID-19, we remain committed to the communities we serve. We hope that by helping to support this Women’s Business Enterprise in our region, we are contributing to the progressive development of the ladies who are employed there as well as the refugee needs of UNHCR worldwide”

“Sitti” (si-TEE) means “My Grandmother” in Arabic. Sitti Social Enterprise is a self-sustaining enterprise for the women of Jerash Camp that also supports community-based programming for women and girls. Their aim is to grow educational and skill-development and to support programs that will ultimately bring greater independence and freedom to Palestinian refugee women and their communities. The profits from the sales of their handmade soaps help to fund computer classes, English classes, and scholarship opportunities for their employees.

UNHCR is diversifying its fundraising channels during the Coronavirus pandemic and providing safe, innovative solutions for both donation and receipts of humanitarian aid. The organization supports camps in over 96 refugee-hosting countries reporting local transmission of COVID-19 and over 71 million people have been forcibly displaced. UNHCR is seeking US$255 million to help priority countries hosting large populations of refugees prevent and respond to the coronavirus. “The worst of crises requires the best of humanity,” said the High Commissioner. “Now is the time for action. We can prevent the disease from spreading. With your support, we can save lives.”   

#AudiTogether

The extension applies worldwide to all cars produced in Europe, Brazil, Mexico or India whose new car or extended warranty expires or has expired in the time period between 1st March 2020 and 31st May 2020. The period for the extension ends three months after the expiration of the original new car or extended warranty, at the latest on 31st August 2020. In the Middle East, all Roadside Assistance contracts which expire between 1^st March and 31^st May, are also extended until the end of May to support customers.

“We are reaching out to our customers in these trying times and are enabling more flexibility in order to organize visits to Audi dealerships”, says Horst Hanschur, Vice President Retail Business Development and Customer Services. “Many of our dealer partners worldwide are still closed or just in the process of opening their doors again. We are therefore making adjustments in a number of areas in order to ensure our customers still have a premium experience with the Audi brand, as well as to ensure the future of our dealerships.”

The mileage restriction of the Audi extended warranty remains unchanged with respect to the warranty extension. If mileage restrictions for new car warranties have been issued in a market, then these also remain unchanged. In the case of an overlap between the extension of the new car warranty and the start of the Audi extended warranty, the start of the extended warranty will be postponed for three months free of charge.

All the above mentioned measures are one-time and voluntary goodwill measures which have been introduced due to the circumstances created by the Covid-19 crisis. These measures are not a recognition of any legal obligation and do not imply any such obligation in the future.

In the context of the corona pandemic, Audi was operating in a highly volatile regulatory and economic environment in the first quarter. The global shutdown had adverse effects along the entire automotive value chain, for example on sales, customer demand and supply-chains stability. “We closed down our production capacities in a controlled manner and in doing so have protected jobs at our sites in Germany thanks to short-time working. The health of our employees and their families has always been and still is our top priority,” said Arno Antlitz, Member of the Audi Board of Management for Finance, China and Legal Affairs. “At the same time, during this phase when the markets are at a standstill, we have succeeded in protecting our liquidity and keeping core processes stable at our company also in the crisis.”

After the car manufacturer had initially started the year 2020 with a tailwind from its model initiative, the spread of the coronavirus and related regulatory measures such as the closure of dealerships and lockdowns from February onwards had an increasingly adverse impact on car deliveries, first in the Chinese market and later in the other core regions as well. Due to the pandemic, deliveries by the Audi brand fell by 21.1 percent in the first three months to 352,993 vehicles (2019: 447,247). The Four Rings thus performed better than the overall market, which contracted by 23.3 percent. The first signs of recovery were already apparent in China towards the end of the first quarter: 100 percent of dealerships there have now reopened. With measures such as online sales of new cars from stock, virtual showrooms and Audi’s live advice, the brand is systematically expanding its digital sales business together with its partners.

In the context of the declining market development, the Audi Group generated revenue of €12,454 million (2019: €13,812 million), with positive effects from the full availability of Audi Q3 models and the market success of the Audi e-tron, as well as from higher revenue from deliveries of parts sets for local production in China. At €483 million, revenue by the Lamborghini brand was at the high level of the prior-year period (2019: €491 million).

Operating profit of €15 million (2019: €1,100 million) reflects not only the decline in demand, but in particular the turbulent situation on the commodity and capital markets caused by the pandemic. In the first quarter, Audi recognized losses on the fair-value measurement of commodity hedges of approximately €0.5 billion and faced headwinds from exchange-rate effects. Operating profit was adversely affected also by expenses for the early-retirement plan under the Audi.Future program. Thanks to further efficiency gains and the greater use of synergies within the Volkswagen Group, Audi was able to reduce its research and development expenditure. The operating return on sales was 0.1 percent (2019: 8.0 percent).

Profit before tax amounted to €545 million (2019: €1,196) million, and was also positively affected by the sale within the VW Group of AEV GmbH. The former Audi subsidiary is now the basis of the Car.Software organization, into which the Volkswagen Group will place the software development activities of all its brands. The organizational focus of the Volkswagen Group’s software subsidiary is to be in Ingolstadt.

The cash inflow from that transaction of €650 million had a positive impact on the liquidity situation. The net cash flow amounted to €952 million in the first quarter (2019: €1,207 million) and net liquidity amounted to €18,792 million at March 31, 2020 (December 31, 2019: €21,754 million). In addition, the company set up a task force at an early stage to optimize cash outflows. “Audi is in a robust financial position. We are systematically reducing our short-term expenditure without compromising Audi’s ability to act and its long-term future capability,” said Arno Antlitz. The company has been pushing forward with important core processes also during the phase of short-time working, for example in the Technical Development and Production divisions, in order to safeguard future market launches and ensure a rapid ramp-up.

After production at the Chinese plants had already been restarted on February 17, 2020 and is now largely back to regular volumes, the European sites have been gradually ramping up again since the end of April 2020. Comprehensive precautions have been taken to protect employees’ health during the restart.

With a view to full-year 2020, against the backdrop of the ongoing corona pandemic, the car manufacturer anticipates negative growth for the global economy and significantly lower demand in worldwide car markets. The Audi Group therefore expects deliveries of the Audi core brand, revenue and operating profit to be significantly below the respective prior-year figures. The net cash flow is expected to be lower than in the previous year.

First Quarter results:
www.audi.com/Quarterly-Report-Q1-2020

Video-Interview with Arno Antlitz, Member of the Board of Management of AUDI AG for Finance, China and Legal Affairs, on the first quarter results:
www.audi.com/Assessment-Q1-2020

Selected key figures of the Audi Group

In view of the spread of the coronavirus and in order to minimize the risk of infection for employees, contractors and guests, the Audi Group is not holding an annual press conference this year. “We are in an exceptional situation for which there are no tried-and-tested solutions or simple recipes. We are focusing on protecting our employees, contractors and guests and making the right business decisions in this volatile environment,” says Audi CEO Bram Schot. The company is shutting down its plants in Ingolstadt, Neckarsulm, Belgium, Mexico and Hungary in a controlled manner by the end of this week.

Markus Duesmann, the new Chairman of the Board of Management of AUDI AG since
April 1, said: “The corona pandemic presents extreme challenges for all of us worldwide – for us as a company and for society as a whole. I would like to thank all the Audi employees who are looking ahead, doing their bit and helping where they are needed in this extraordinary time. I would also like to thank all those people who are maintaining business operations at our worldwide sites. I am convinced that things will continue for the Audi employees also after the crisis is over. At the moment, one thing counts above all: the health of our employees, their families and society as a whole. And to protect it, we need to flatten the infection curve.”

Peter Mosch, Chairman of the General Works Council of AUDI AG, added: “The willingness of our team to help in the corona crisis is enormous. Everyone wants to do their bit to help shape a secure future after the crisis. By playing an active role in the matter of donations, we are meeting our great responsibility towards the regions of our sites.” Audi employees who want to get involved and provide active support can submit their offers and inquiries via an internal Audi e-mail address. Dr. Ute Röding, responsible for corporate citizenship at Audi: “All our colleagues from Neckarsulm and Ingolstadt can send us their suggestions, which we will promptly examine and assess. We have already been able to help the first inquirers.”

Numerous monetary and material donations at German and international sites

The first major cash donations are already underway. On Monday, March 30, AUDI AG handed over a total of 600,000 euros to the hospitals at its home sites in Ingolstadt and Neckarsulm – this money is on top of the five million euros. In Ingolstadt, Audi is now also supporting the challenge “sprint4local – one week for Ingolstadt.” Initiated by the Digital Startup Center of the Ingolstadt region and IFG Ingolstadt, participants will have the opportunity here from April 1 to 7 to develop ideas virtually on how the Ingolstadt region can overcome the challenges of the crisis and thus emerge stronger from this period. The international sites of the Audi Group are also providing local support in their regions: Among other things, they are providing medical equipment – Audi Brussels or Audi China, for example. Audi Hungaria will make a cash donation to the Győr Hospital. Further measures are currently being planned in detail at all sites.

International #AudiTogether campaign and solidarity concert streamed on the internet

Violinist Lisa Batiashvili, artistic director of the Audi Summer Concerts, will give an exclusive concert on Tuesday, April 14, at 8 p.m. together with the famous musicians Maximilian Hornung, François Leleux, Sarah Christian und Jano Lisboa at Audi in Ingolstadt. This concert will be delivered at Facebook @Audi.AG and on the YouTube channel @Audi and it will be streamed on www.audimedia.tv so that all interested parties can experience it live on the internet. “Music connects people,” explains Batiashvili. “It is a matter of the heart for my colleagues and me to show our solidarity in these times and to stand together.”

Under the #AudiTogether hashtag, the brand with the Four Rings is currently showing its attitude worldwide as a company in times of the corona crisis. The motto “We are in this together” stands for the solidarity of the brand, the employees and Audi fans across all markets and social media channels. The initiative is flanked by participative activities. They start with the so-called #FourRingsChallenge, in which all interested parties can creatively present the Audi rings. In the next few days, further social media activities will be launched on the global Audi channels, including several quartets on Instagram all around car features of the Audi A3 and Audi e-tron Sportback, as well as a special filter on the question
“Which Audi are you?” More details will gradually become available at audi.com/AudiTogether and Instagram @audiofficial.