According to Rupert Stadler, Chief Executive Officer, Audi, 2012 is going to be tougher year for the automobile market than 2011. However, he added that this should not discourage car manufacturers as the industry is forecasted to expand in the next 10 years due to the increase in demand for cars in developing nations. However, he refused to comment on the rumour that he may be succeeding Martin Winterkorn, the Chairman of the Board of Management Volkswagen AG, by the end of 2016.
Stadler also stated that he expects the Chinese automobile market to increase by 8 to 9 per cent, while its premium luxury segment should grow by as much as 20 or 30 per cent. However, he did not elaborate on how much time it will take for this to happen.
Audi leads the Chinese car market in the luxury segment, leaving behind competitors like Daimler AG's Mercedes and BMW. The company hopes to become the top luxury car makers in the world by 2015, as rising markets like China will provide a high profit margin on cars.
The makers of Audi are also attempting to secure the top position in the United States automobile market, which comprises the largest luxury segment in the world with current capacity of around 2 million cars. Audi, at the moment, lags behind BMW and Mercedes in the U.S. market.
The proposed manufacturing plant by Audi in the United States will probably help it in achieving a favourable position, but the location of the plant is still not decided. Countries like Mexico have cheaper labour; however, Volkswagen AG (Audi’s parent company) has already established a facility there. Even if Audi combined with the Volkswagen factory in Chattanooga, the export duty will have very high taxes, although the investment would be lesser.
Moving on to his own Volkswagen plans, Stadler commented that he would stay with Audi and not succeed Winterkorn. He said, "I have many things to do here”. Though nothing can be said of the future, it seems that Audi is in good hands right now and may succeed in becoming the world's largest luxury car maker through its aggressive strategies.
