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Public Relations

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Organizational profile.
The organization that I have chosen to include in this assignment is Audi (Audi AG). First thing first, Audi is a German based automotive company that designs, develops, engineers, manufactures and distributes automobiles. Audi’s headquarter is located in Ingolstadt, Bavaria, Germany.
Audi is a subsidiary of Volkswagen Group since year 1966, the four rings of its logo each represents four car companies that have previously banded together to form the current Audi. “Vorsprung durch Technik” is Audi’s slogan, which stands for “Advancement through Technology”. Audi is among the best-selling luxury automakers around the globe alongside with BMW and Mercedes-Benz.

Name of organization : Audi (Audi AG).
Type of business entity : Public.
Industry sector : Automotive.
Founder : August Horch.
Founded (Origin & Year) : On 29th June 1932, in Chemnitz, Germany.
Headquarter : Ingolstadt, Germany.
Factories & facilities : A total of 9 production facilities and factories in 8 countries.
Area distributed : Global.
Key figures : - Rupert Stadler, Chairman of the Board of Management. : - Wolfgang Egger, Head of Design. : - Ulrich Hackenberg, Head of Technical Development.
Product of distribution : Luxury cars and automobiles.
Owner : Volkswagen Group.
Employees : >70,000 employees.
Subsidiaries : Ducati Motor Holding S.p.A, Automobili Lamborghini S.p.A, Quattro GmbH.

Organization history.
Automobile company Wanderer, Horch, Dampf-Kraft-Wagen (DKW) and NSU were merged into Auto Union in 1932. August Horch was banned from using “Horch” as a trade name for newly established car business after his former partners sued him for trademark infringement, he called up a meeting with his business partners in an apartment to come out with a new name.
One of the business partner’s son said “wouldn’t it good to be called audi instead of horch?”, “to listen” – in Latin. The idea was mutually accepted by everyone in the meeting and it was later entered in the registration court of Zwickau.
Audi Type A Sport-Phaeton was the first Audi automobile produced in 1910, followed by its successor Type B. August Horch was offered a high position in the ministry of transportation, he left Audiwerke in 1920 but he was still involved with Audi in the board of trustees.
Auto Union used the four rings to make up the Audi logo today, representing four brands (Wanderer, Horchwerke, DKW & Audiwerke). By 1938, the company's DKW brand was accounted for 17.9% of the German car market, while Audi held only 0.1% at the time. After the several final Audis were delivered in 1939, the "Audi" name had disappeared entirely from the new car market during that era.
During World War 2, Auto Union factory plants were used for military production and was damaged by allied bombing. The factories was disassembled by Soviet Union military in 1945 as war reparations, Auto Union’s assets were expropriated without any compensation, Volkswagen later then purchased Auto Union and Audi in 1945.
The new Auto Union was re-launched in Ingolstadt, Bavaria, on 3rd September 1949. Ten years later, the company had managed to attract investors and funds were available to construct major car plant at the Ingolstadt head office.
The outcome to dispose of the Auto Union business was mainly because of its lack of profitability. However, by the time the business was sold, it also included a large new factory plant and production-ready modern four-stroke engine, which would potentially put Auto Union into business. Of course, under a new owner (Daimler-Benz), to commence and embark on a period of promising profitable growth, now producing neither Auto Unions nor DKWs, but using the "Audi" name, restored in 1965.
Volkswagen gained 50% holdings in the business in 1964 and bought complete control of Audi’s headquarter, Ingolstadt eighteen months later. Audi was resurrected when Volkswagen authorized the car production of Audi’s prototype in 1968, and it was a huge success.
In 1969, Audi was later merged with NSU which is based in Neckarsulm. The factory plant in Neckarsulm is now used to produce Audi A6, A8, R8 and other high performance models. The newly joint company was named “Audi NSU Auto Union AG”, Volkswagen introduced Audi as a separate brand to the United States in 1970.
In 1985, the company’s official name was shortened to just “Audi AG” because Auto Union and NSU brands were pronounced dead. In the early 1990s, Audi began to target its market to compete with German giant automakers, BMW and Mercedes-Benz. However, Audi’s sales fell after a recall campaign of Audi 5000 models from 1982 to 1987, which is related to reported accidents of sudden unintended acceleration that has caused 6 deaths and approximately 700 accidents.
Today, Audi’s has a strong and firm growth in terms of sales. Audi has also became the car of choice by Chinese government for officials in China, up to 20% of its sales in China are made by the Chinese government. Audi develops and manufactures their vehicles in seven different plants around the globe, while some of the factory plants are shared with Volkswagen group.
The fundamental assembly factory plants are Ingolstadt, opened by Auto Union in 1964, (A3, A4, A5, Q5) and Neckarsulm, bought from NSU in 1969 (A4, A6, A7, A8, R8 & all RS variants). For factory plants that are outside of Germany, there are located in: * Aurangabad, India * Bratislava, Slovakia (shared with Volkswagen, SEAT, Škoda and Porsche) * Brussels, Belgium, (bought from Volkswagen) * Changchun, China since 1995 * Győr, Hungary * Jakarta, Indonesia since 2011 * Martorell, Spain shared with SEAT and Volkswagen
Audi has also made an announcement of its new factory plant in Puebla, Mexico. Which is planned to be operative in 2016.

Organizational structure.
The Audi AG corporate management consists of board of management and supervisory board. The managers of Audi AG structures the foundation for responsible corporate management of Audi.
Audi AG Board of Management Members:
1. Prof. Rupert Stadler
- Chairman of the Board of Management since 1/1/2007.
- Member of the Board of Management since 1/1/2003.
2. Luca de Meo
- Board Member for Sales and Marketing since 1/9/2012.
3. Dr.-Ing. Hubert Waltl
- Board Member for Production since 1/4/2014.
4. Prof. Dr.-Ing. Ulrich Hackenberg
- Board Member for Technical Development since 1/7/2013.
5. Dr. Bernd Martens
- Board Member for Procurement since 1/9/2012.
6. Prof. h. c. Thomas Sigi
- Board Member for Human Resources since 1/10/2010.
7. Axel Strotbek
- Board Member for Finance and Organisation since 1/9/2007.

Audi AG Supervisory Board consists of:
1. Stockholder Representatives.
2. Employee Representative.
3. Honorary Chairman.
4. Supervisory Board Committees.

1. Stockholder Representatives
Prof. Dr. Dr. h. c. mult. Martin Winterkorn
- Chairman
- Chairman of the Board of Management of Volkswagen AG, Wolfsburg
- Chairman of the Board of Management of Porsche Automobil Holding SE, Stuttgart
Senator h. c. Helmut Aurenz
- Owner of the ASB Group, Ludwigsburg
Dr. rer. pol. h. c. Francisco Javier Garcia Sanz
- Member of the Board of Management of Volkswagen AG, Wolfsburg
Prof. Dr. rer. pol. Horst Neumann
- Member of the Board of Management of Volkswagen AG, Wolfsburg
Hon.-Prof. Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand K. Piëch
- Chairman of the Supervisory Board of Volkswagen AG, Wolfsburg
- Chairman of the Supervisory Board of MAN SE, Munich
Dr. jur. Hans Michel Piëch
- Attorney, Vienna, Austria
Ursula Piëch
- Member of the Supervisory Board of Volkswagen AG, Wolfsburg
Dipl.-Wirtsch.-Ing. Hans Dieter Pötsch
- Member of the Board of Management of Volkswagen AG, Wolfsburg
- Member of the Board of Management of Porsche Automobil Holding SE, Stuttgart
Dr. jur. Ferdinand Oliver Porsche
- Member of the Board of Management of Familie Porsche AG Beteiligungsgesellschaft, Salzburg, Austria
Dr. rer. comm. Wolfgang Porsche
- Chairman of the Supervisory Board of Porsche Automobil Holding SE, Stuttgart
- Chairman of the Supervisory Board of Dr. Ing. h. c. F. Porsche AG, Stuttgart

2. Employee Representatives
Berthold Huber
- Deputy Chairman
Johann Horn
- Chief Executive of the Ingolstadt office of the IG Metall trade union
Rolf Klotz
- Deputy Chairman of the Works Council of AUDI AG, Neckarsulm plant
Peter Kössler
- Ingolstadt Plant Manager, AUDI AG
Peter Mosch
- Chairman of the General Works Council of AUDI AG
Norbert Rank
- Chairman of the Works Council of AUDI AG, Neckarsulm plant
Jörg Schlagbauer
- Member of the Works Council of AUDI AG, Ingolstadt plant
Helmut Späth
- Member of the Works Council of AUDI AG, Ingolstadt plant
Max Wäcker
- Deputy Chairman of the Works Council of AUDI AG, Ingolstadt plant
Sibylle Wankel
- IG Metall trade union, Bavarian regional headquarters, Munich

3. Honorary Chairman
Prof. Dr. rer. pol. Carl H. Hahn
- Honorary Chairman since January 1, 1993

4. Supervisory Board Committees
Members of the Presiding Committee
- Prof. Dr. Dr. h. c. mult. Martin Winterkorn – Chairman
- Berthold Huber - Deputy Chairman
- Peter Mosch
- Hon.-Prof. Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand K. Piëch
Members of the Presiding Committee pursant to Section 27, Para. 3 of the German Codetermination Act
- Prof. Dr. Dr. h. c. mult. Martin Winterkorn – Chairman
- Berthold Huber - Deputy Chairman
- Peter Mosch
- Hon.-Prof. Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand K. Piëch
Members of the Audit Committee
- Dipl.-Wirtsch.-Ing. Hans Dieter Pötsch – Chairman
- Norbert Rank - Deputy Chairman
- Dr. jur. Ferdinand Oliver Porsche
- Jörg Schlagbauer

Audi AG affiliates
1. Automobili Lamborghini S.p.A.
It was acquired by Audi in 1998, the legendary sports car manufacturer stands out for its annual tradition and success.
2. Ducati Motor Holding S.p.A.
In July 2012, Audi AG subsequently added motorcycles to its product portfolio range by acquiring the well-known Ducati brand.
3. quattro GmbH
It was founded in 1983, the company embodies individuality, exclusivity and sportiness in the automotive industry.

Products offered.
Current model range of Audi cars as of 2012 onwards. Models | Class | Body Style | A1 | Super-mini | * 3-door Hatchback * Sportback (5-door Hatchback) | A3 | Small Family Car | * 3-door Hatchback * Saloon (Sedan) * Sportback (5-door Hatchback) * Cabriolet | A4 | Compact Executive Car | * Saloon (Sedan) * Avant (Estate/Wagon) * Allroad (Crossover Estate/Wagon) | A5 | Compact Executive Car | * Coupé * Sportback (5-door Hatchback) * Cabriolet (Convertible) | A6 | Executive Car | * Saloon (Sedan) * Avant (Estate/Wagon) * Allroad (Crossover Estate/Wagon) | A7 | Executive Car | * Sportback (5-door Hatchback) | A8 | Full Size Luxury Car | * Saloon (Sedan) |

Audi coupés and SUVs. Models | Class | Body Style | TT | Compact Sports Car | * Coupé * Roadster (Convertible) | R8 | Sports Car | * Coupé * Spyder (Convertible) | Q3 | Compact Crossover SUV | * SUV | Q5 | Compact Crossover SUV | * SUV | Q7 | Full-size Crossover SUV | * SUV |
S (Sport) models. Models | Class | Body Style | S3 | Small Family Car | * 3-door Hatchback * Sportback (5-door Hatchback) | S4 | Compact Executive Car | * Saloon (Sedan) * Avant (Estate/Wagon) | S5 | Compact Executive Car | * Coupé * Cabriolet (Convertible) * Sportback (5-door Hatchback) | S6 | Executive Car | * Saloon (Sedan) * Avant (Estate/Wagon) | S7 | Executive Car | * Sportback (5-door Hatchback) | S8 | Full-size Luxury Car | * Saloon (Sedan) | TTS | Compact Sports Car | * Coupé * Roadster (Convertible) |

RS (RennSport/Racing) models Models | Class | Body Style | RS4 | Compact Executive Car | * Avant (Estate/Wagon) | RS5 | Compact Executive Car | * Coupé * Cabriolet (Convertible) | RS7 | Executive Car | * Sportback (5-door Hatchback) | TT RS | Compact Sports Car | * Coupé * Roadster (Convertible) |

Electric vehicles.
Audi is currently planning to develop hybrid electric vehicles in cooperation with Sanyo (Japanese electronics giant). Audi also came out with concept electric vehicles such as Audi A1 Sportback Concept, Audi A4 TDI Concept E and the fully electric Audi e-tron Concept Supercar.

Organizational investment profile.
The share capital structure of Audi whereby 99.55% of shares are currently held by Volkswagen AG. However, the remaining shares of 0.45%, are free-floating. Audi AG and Volkswagen AG have an agreement based on control and profit transfer, this agreement readjusts, rectifies and regulates the level of payment and compensation to external shareholders. This assures they receive the same amount for each financial year paid through dividend on a Volkswagen regular share. Compensatory payment was set at EUR 3.50 during Volkswagen Annual General Meeting 2013.
Total number of delivered units has increased by 8.3% from 1,455,123 units (2012) to 1,575,480 units (2013), revenue has also increased from EUR 48,771 million (2012) to 49,880 million (2013). However, the operating profit of EUR 5,030 million in 2013 was not on par with operating profit of 2012 (EUR 5,365 million). Lastly, according to key figures report, the operating return on sales has reached 10.1%. On the other hand, Audi claimed automotive industry might face challenges caused by politics, markets, resources, urbanization and so on.

Audi Key Figures

Taken and referred from – (http://www.audi.com/content/dam/com/EN/investor-relations/for-investors/key-figures/audi_key_figures_2013.pdf).

Roles of Public Relations.
Since year 2011, Audi has been actively involved with “startsocial”. Two employees of product marketing and Ingolstadt plant strategy from Audi drive from Ingolstadt to Augsburg every two weeks after they finished their work, for a period of four months. The project of these two Audi employees work at their free time involves a social enterprise in the city of Augsburg, the “Grandhotel Cosmopolis”.
“Grandhotel Cosmopolis” is a sociocultural shelter and refuge housing with studio for artists and a restaurant, café and hotel. These two Audi employees are actively assisting them since they were assigned for the “Grandhotel Cosmopolis” social project. Through the social project, communication between the Audi coaches and the "Grandhotel" initiators got flowing remarkably fast despite different terminology is being used between both groups.
Lastly, Audi employees are called upon to work as jurors or coaches in turn during the period of the social project. This largely involves issues around the field of financing, organization and personnel management, including communication and public relations. The Audi coaches are eventually invited to attend the opening of “Grandhotel Cosmopolis”.

Societal Contribution.
Education partnerships
Audi, as a successful multinational company has obligation to return something to the society, such as supporting the growths of communities, schools and universities. Audi works closely with several, both national and international institutes by investing cooperative efforts in applied and technical sciences. Technical University of Munich has a partnership with Audi since 2003, Audi now has approximately 29 university partnerships.
More than 141 Ph. D students are funded by Audi to pursue and earn their doctorates in scientific fields, meanwhile over 150 Audi employees visit lecturers in different universities to contribute their knowledge transfer. Colloquium lecture series has also been held by Audi throughout the years since 2004, these lecture series are held in Ingolstadt and Neckarsulm with over 2,300 people attended the events in 2012.

Cultural commitment
“Audi Art Experience” program has been established to support regional, national and international cultures for more than 50 years. Various artists performed in Audi Summer Concerts and Audi employees eventually founded an orchestra company in 1962, which is now called as the Audi Philharmonic Wind Orchestra. Youth Choir Academy established in 2007 was funded and sponsored by Audi as well.
Voluntary efforts
“Audi Volunteers” program encourages its employees to interact with charitable organizations. Audi financially assisted the charitable organizations with fundraisers as well as providing helpful and knowledgeable employees to assist participants. Examples such as emergency aid during natural disasters and yearly Christmas donation by Audi employees and Board of Management. These donations reach six-figure amounts each year, providing benefits to social and charity organizations.
During “Audi Volunteer Days”, more than 10,800 hours of voluntary work were performed by 1,350 Audi employees in 158 different projects. Projects such as planting of herb garden and support social institutions. Audi employees also spare their free time to bake Christmas cookies with senior citizens and disabled people. Non-profit organizations can attract volunteers through “Audi Volunteers online” platform.
Urban initiatives
Audi founded the “Audi Urban Future Initiative” in 2010, serves as a global forum that aims to gather architects, sociologists, urban planners and trend researchers to approach any mobility solution for cities that grow rapidly around the globe. Audi also introduced the Audi Urban Future Award, a large monetary prize based on architectural competition awarded every two years.

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