Audi automobiles are one of the most photogenic cars in the market and can be seen in countless glossy magazines, TV commercials, and websites across the world. Established in 1909, this German car manufacturer quickly grew to become one of the leading luxury car manufacturers, ranking one of the top three worldwide. But the question of the hour is this – who actually owns Audi?
The main shareholder behind Audi is Volkswagen, who holds a 99.55% stake in the company. This is, however, a recent development, as Volkswagen acquired Audi in 1966, making it a subsidiary of the automotive giant. With the acquisition, Volkswagen gained access to Audi’s innovative idea department, furthering its efforts in engineering and vehicle production.
Volkswagen itself has a slightly more complicated ownership structure, as it’s owned by both the Porsche and Piëch families (both with a 52% share), as well as Qatar Holdings, which has a 17% share. Each of the owners of Audi, the Porsche and Piëch families, have the same controlling stake in the company. This is backed up by Qatar Holding, who holds a 17% stake.
In addition to the financial interests, Audi is under the control of the Volkswagen Corporate Governance Board, which consists of five members appointed by the major stakeholders. The company is also headed by the Chairman and CEO, along with the Board of Management. In addition, it is managed by its shareholders, who have an overall interest in it.
One of the major challenges faced by Audi recently is the diesel emissions scandal which erupted in 2015. Volkswagen – in an attempt to cheat emissions standards and effectively ‘greenwash’ their vehicles – had installed software in diesel cars that lowered emissions during testing, while continuing to be harmful to the environment when driven in the real world. This affected both Volkswagen and Audi vehicles and put the Audi name in a state of disrepute.
However, Audi have since taken steps to improve their environmental credentials, investing significantly in alternative fuel sources and technologies such as hydrogen fuel cells, electric cars, and naturally-aspirated engines. This work has been credited for helping the company to mitigate the fallout from the diesel scandal.
Business Model
Apart from being a subsidiary of Volkswagen, Audi also has a wide range of business partnerships which further help to bolster its infrastructure. The company has taken a keen interest in new technologies and has made moves to exploit blockchain and robotization as part of its manufacturing process. In addition, the company also has an excellent relationship with nearby suppliers that provide vital parts and accessories for the manufacture of their cars.
In terms of marketing, Audi employs both traditional techniques such as television commercials, as well as digital campaigns to target its core customers. The company has also formed strong collaborations with the likes of the Google Maps platform, and this helps to position it as one of the premier luxury car manufacturers.
Essentially, Audi’s business model is built around a combination of manufacturing, sales, and marketing – all backed of course by the financial assistance of Volkswagen. This allows the company to remain competitive and competitively priced, yet still maintain its niche as a top-of-the-line luxury car manufacturer.
Operations in the US
In terms of how Audi fares in the US, America has not traditionally been Audi’s biggest market, as most of its vehicles were more suited for the European market. However, this has been changing in recent years with the introduction of more American-friendly designs such as the Audi A4, as well as a sharp focus on targeting the US through technical collaborations, marketing campaigns, and cultural alliances. This has seen Audi’s sales in the US rising steadily, though they are still far behind other leading luxury car manufacturers such as BMW and Mercedes-Benz who have a greater presence and more established businesses in the US.
Audi have a total of seven plants in the US, which are located in Michigan, Alabama, and Tennessee. This has allowed the company to import more vehicles from Europe and parts from the Middle East, which in turn has enabled the company to reach more consumers in the US.
Future Perspectives
Despite the diesel emission scandal and the lack of success in America, Audi remain one of the leading premium car manufacturers in the world. The company has been investing heavily in new technologies such as electric and hybrid vehicles and this will certainly help to ensure their long-term success. Additionally, the company has also taken steps to expand its operations in the US, so this should also help to boost its sales figures.
The main challenge that Audi now face is that of staying competitive in an increasingly crowded market. With more and more manufacturers turning to electric and hybrid vehicles, the competition is becoming stiffer, and Audi must ensure that they continue to innovate and create vehicles that appeal to their target customer base.
Competition
Audi compete with other major luxury car brands such as BMW and Mercedes-Benz, who are also increasingly turning to electric and hybrid technology. Additionally, Audi also face competition from more mid-tier luxury brands such as Lexus, Jaguar and Volvo. These companies are offering vehicles at a lower price point than Audi, but still maintaining a high degree of quality, which is something that Audi must strive to do in order to remain competitive.
In addition to this, Audi also face competition from technology firms such as Tesla and Google, who have also been making moves in the automotive market. Tesla, in particular, have been shaking up the luxury car market with their electric vehicles and could potentially be a major threat to Audi in the long-term.
Innovation
In order to remain competitive and ahead of the curve, Audi must continue to innovate and put forth new ideas. This includes investing in technology such as alternative fuel sources, automatic driving systems, and autonomous vehicles. The company have already taken steps in this direction with their battery powered ‘e-tron’ vehicles, and this could be a major breakthrough for them in the near future.
In addition, Audi must also continue to focus on design innovation too. This is something that the company has traditionally been strong in and something that is key to differentiating their vehicles from those of their competitors. This could mean new features and options for their customers, or even radical redesigns of their vehicles. Whatever the case may be, Audi must stay ahead of the game in order to compete with the other luxury car manufacturers.
Customer Satisfaction
Finally, Audi must also focus on providing great customer service in order to remain competitive and build loyalty amongst their customers. This includes providing excellent customer support, prompt repairs, and regular maintenance of vehicles. Additionally, the company should also focus on providing an enjoyable customer experience when purchasing vehicles, offering them an enjoyable and stress-free buying process.
This is particularly important in the luxury car market, as customers will be expecting the highest quality service, and any slip-ups could have a detrimental effect on the customer’s opinion of the brand. As such, Audi must strive to maintain a high standard of customer care in order to avoid this from happening.
