Mercedes-AMG GmbH is celebrating the most successful year in its company history. AMG, the performance brand within Mercedes-Benz Cars, succeeded in increasing unit sales worldwide by 19 per cent, selling 24,200 vehicles (previous year 20,300) and bucking the market trend in extremely difficult conditions.As in previous years, the USA was the strongest market for AMG with a share of 38 per cent of total sales. Germany came in second place (13 per cent), followed by Japan (8 per cent). The German market has developed very positively with a clear increase of 34 per cent compared with the previous year. The greatest growth markets of 2008 include amongst others China and Brazil with rates of increase of 260 per cent and 565 per cent respectively. With these figures AMG confirms its leading position amongst high-performance vehicle brands and at the same time further expands its market share in the high-performance segment.

The C 63 AMG made a considerable contribution to the success of 2008 with 8100 vehicles delivered. The C 63 AMG, available as a saloon and as an estate, is thereby the most successful AMG automobile of all time. The new SL 63 AMG also developed positively, with 3,050 enthusiastic purchasers in 2008.

In addition, a further chapter of the Black Series success story was relayed to the world with the SL 65 AMG Black Series, limited to 350 units – and enchanted the media and demanding AMG customers alike.

The AMG sports package also made a positive contribution to the year’s success. The striking sporty equipment packages are available for numerous Mercedes lines and were sought after by more customers than ever in 2008; the increase over 2007 amounted to 73 per cent.

The AMG Driving Academy, founded in 2007, registered twice as many applications as in 2007. The strength of demand for high-class racing circuit training and events has led AMG to undertake a considerable expansion of the AMG Driving Academy options for 2009.

Individual customer attention and first class customer care also played a crucial role in AMG’s continually increasing success. Hence AMG is to establish 175 new AMG Performance Centers worldwide by the end of next year: its engagement in intensifying customer relations now covers 15 countries in total.

Environmentally compatible vehicle development initiatives

In addition to its passion for high-performance sports vehicles, Mercedes-AMG GmbH is also committed to social responsibility and is intensifying its engagement in the development of environmentally compatible vehicles. AMG is already “Best in Class” amongst its performance car subsidiary and sporting brand competitors in the field of consumption. All AMG vehicles will surpass the EU-5 standards which come into force from 2009 and also the EU-6 standards which will apply from 2014. To reduce consumption, AMG is shortly to introduce efficiency-increasing engine-generator management as well as regulated oil and water pumps. From 2010 AMG will equip its vehicles with direct petrol injection and with start-stop function. Through constantly increasing efficiency, AMG will from 2012 achieve a reduction in consumption of 30 per cent in comparison to present levels.

AMG was founded in 1967 by Hans Werner Aufrecht and Erhard Melcher and is considered to be a pioneer in the field of motor sport and refinement. The cooperation contract agreed with Daimler-Benz AG in 1990 was followed in 1999 by gradual integration into the then DaimlerChrysler AG. On 1 January 2005 DaimlerChrysler AG took 100 per cent of the shares. Today Mercedes-AMG GmbH is a vehicle manufacturer and AMG is the performance brand within Mercedes-Benz Cars. The subsidiary firm of Daimler AG is uniquely specialised in the field of high-performance vehicles and, with its sporty saloons, coupés, cabriolets, roadsters, SUVs and specially produced one-off vehicles, offers a product portfolio which leaves no customer wish unfulfilled. Mercedes-AMG possesses overall responsibility for design, aerodynamics and interior as well as drive system, engine, chassis, brakes and electronics, and ultimately for the final release of the AMG complete vehicle. In addition, marketing and sales-related aspects are handled independently.

Volkwagen’s luxury division, Audi, set the bar high in 2008 with a goal of one million in global sales and to beat its record profit margin. Audi achieved both those goals by selling 1,003,469 cars and collecting €2.3 million after taxes (up 30% from the previous year). With numbers like these, most companies would rejoice in spending and attempt to redistribute cash-flow towards various in house departments but Audi says its gearing up for a rather slow 2010. Estimates would suggest that sales could drop upwards of 10%, thus pushing executives to cut costs at plants and development centers.
This comes as no surprise due to the slowing economy and will likely be just the beginning in the restructuring of the German luxury auto industry.

PRESS RELEASE

Another record year for Ferrari

• ROS rises to 17.6%
• Investments at 18% of revenues
• Growth continues in Emerging Markets
• Complete energy self-sufficiency within 12 months

The Ferrari S.p.A Board of Directors met today under the chairmanship of Luca di Montezemolo to examine the Company’s end-of-year figures for 2008.

Once again in 2008 Ferrari delivered results that beat all previous Company records. The strong Return on Sales (ROS) growth seen in recent years continued, reaching 17.6% compared to 15.9% in 2007. This was an outstanding result in the car sector in general and is especially impressive given the very tough economic backdrop against which it was achieved, particularly in the second half of the year.

This important result comes courtesy of Ferrari’s diverse range of products and strict cost-cutting measures. That said, investments in research and development increased, reaching 18% of revenues in 2008. Improvements and efficiencies also helped compensate for unfavourable dollar and sterling exchange rates.

In addition to the above-mentioned structural improvements, Ferrari also launched a range of major commercial initiatives in 2008, including the new One to One Personalisation Programme for its 12-cylinder models and a new client assistance programme. Ferrari also enjoyed strong growth in the Brand related activities (licensing, retail and e-commerce) with +28% overall, the e-commerce segment performing particularly well, as revenues there boomed by over 65%.

Commenting on the figures, Ferrari Chairman Luca di Montezemolo declared: “Ending 2008 with results unprecedented in the entire history of the Company is the best endorsement we could have of our strategy of exclusivity, innovation and focus on people. These results beautifully cap a truly exceptional year that saw us once again at the top in Formula 1, winning our 16th Constructors’ title, our eighth in the last 10 years.”

“The economic climate in 2009,” continued the Ferrari Chairman, “still remains very uncertain as the crisis takes its toll across the globe and it is hard to say how the situation will develop from here. That means, of course, that Ferrari will have to lavish even more attention on every single detail and continue to innovate whilst preserving the exclusivity of our products with respect to market demands.”

Ferrari ended the 2008 financial year with revenues of 1,921 million euro, an increase of 15.2% on the 1,668 million euro recorded in 2007. This rise comes mainly as a result of sales of the 430 Scuderia and the excellent performance of both the 612 Scaglietti and 599 GTB Fiorano 12-cylinder models which benefited from the launch of the One to One Personalisation Programme. The Ferrari California, however, made no contribution to the 2008 figures as the first examples are only being delivered to their owners in the next few days.

A total of 6,587 cars were delivered to end clients in 2008, an increase of 2% with respect to the 6,465 cars delivered in 2007. North America remains the Prancing Horse’s largest market with 1,700 cars (26% of the world total) sold there in line with the 2007 figure, a particularly significant result given the economic downturn there. Sales to Eastern Europe continue to grow (+23%) while deliveries to the rest of Europe were in line with the results achieved last year.

Sales to the Middle East and South Africa continue to grow, with 366 cars delivered, an increase of 12% on the previous year’s figure.

In the Asia-Pacific region, Ferrari delivered 1,089 cars to end clients. Japan remains the primary market in terms of sales volumes with 433 cars delivered to end clients in 2008, an increase of 15%, while we exceeded 200 cars delivered in China for the first time, an increase of 20% on 2007 to 212.

On a further positive note, Ferrari returned a trading profit of 339 million euro in 2008, an increase of 27% on previous year’s figure.

The Prancing Horse’s licensing activities also enjoyed strong growth with revenues up by 35% in 2008 and the figures from the 25 Ferrari Stores worldwide were very positive with overall revenues increasing by 16%. Ferrari also boosted its internet and www.ferrari.com activities in 2008. E-commerce grew by over 65% while a series of special events, including the launch of the Ferrari California and the unveiling of the new F60 single-seater, drew millions of hits from all over the world.

During 2008, Ferrari continued its investment into new car development, setting aside the equivalent of 18% of the Company’s revenues for R&D. Ferrari also continued with its investments in safety in the workplace in 2008. It spent in excess of 4 million euro on structural work and specialist training, achieving major improvements in all areas of the company. Particularly significant in this process was the new “near-misses” alert system which actively involved company’s employees. Defibrillators were also installed throughout the Ferrari complex.

2008 also saw the launch of an in-house energy production plan. A newly unveiled photovoltaic plant and a trigeneration plant due to be completed within the next few months, will mean that Ferrari will meet all of its own energy requirements within the
next year.

In terms of its workforce, as of December 31st 2008, Ferrari employed around 3,000 people, a little under half of whom are office staff.

Continuing its emphasis on people-focused activities, Ferrari also launched its Scuola dei Mestieri in 2008. This new programme is designed to provide training inside the plant which is not normally available outside Ferrari in specialist skills to allow our employees to enhance both their career prospects and professional development and improve their mobility within the company.

Ferrari also broadened the range of employee services in 2008. These now include special mortgage deals of up to 100% for first and second homes and renovations, banking facilities with very attractive conditions and discounts on school books for trainees and school children. There is also a preventative health plan featuring specialist visits, physicals for all employees and their children and free gym usage.

The latest vehicle registration numbers verify that the Audi A4 is Germany’s most successful premium automobile. No other model in the premium segment surpassed the 98,714 A4 models registered last year. The Audi A6 also topped its segment with 45,304 registrations. The second generation of the Audi TT design icon was registered 10,630 times in Germany – making it the most successful sports car in Germany in 2008.

AUDI AG was able to expand its market share on the domestic German market to 8.1 percent – an increase of 0.8 percent. In Western Europe, Audi boosted its market share by 0.4 points to 4.8 percent: No other premium brand succeeded in strengthening its market position this significantly.

“Audi is presently experiencing stronger growth than any other premium brand in the region – and thanks to new models we will maintain this dynamism,” says Rupert Stadler, Chairman of the Board of Management of AUDI AG. “In a difficult market environment, we want to further expand our market share in Germany and Western Europe.”

The Audi A4 is presently undergoing further upgrading: The top versions of the model line – the S4 Sedan and Avant – are now arriving in Europe’s showrooms. The new A4 Avant was just launched in April 2008. In addition to the fleet award from Auto-Flotte magazine, Audi’s best-selling model has already won countless accolades and has beaten the competition in all relevant comparison tests.

The product improvement of the A6 was launched in September 2008. Also the winner of the fleet award in its class, today the A6 is Germany’s most successful business sedan.

With the Audi TTS, the top version of the TT line, Audi introduced the first S model in this class. The Audi TT TDI debuted as the first production sports car powered by a diesel engine.

About Audi AG
AUDI AG sold a total of 1,003,000 cars in 2008 and thus achieved its thirteenth consecutive record year. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Györ (Hungary), Changchun (China) and Brussels (Belgium). Aurangabad in India saw the start of local production of the Audi A6 at the end of 2007 and of the Audi A4 in early October 2008. The company is active in more than 100 markets worldwide. AUDI AG’s wholly owned subsidiaries include Automobili Lamborghini Holding S.p.A. in Sant’Agata Bolognese (Italy) and quattro GmbH in Neckarsulm. Audi currently employs around 57,000 people worldwide, including 45,000 in Germany. The brand with the four rings invests more than €2 billion each year in order to sustain the company’s technological lead embodied in its “Vorsprung durch Technik” slogan. Audi plans to significantly increase the number of models in its portfolio by 2015 to 40. The Audi brand celebrates its 100th birthday in 2009. The company was founded by August Horch in Zwickau on July 16, 1909; he named it Audi after the Latin translation of his surname (“hark!”).

AUDI AG will present the complete results for the 2008 business year at its Annual Press Conference on March 10, 2009 in Ingolstadt.

Source: Audi AG