SHIFT: The next 10 years in automotive

Audi of America

Electrification

Automation

Shared Mobility

A reset is coming. What fuels our cars, who (or what) drives them

and how they’re maintained is all evolving

The major players, and those on the edge of the auto industry,

are forcing unprecedented amounts of investment

Audi of America AoA, VoSi 5/22/2017, Strategy USA

SHIFT: Strategy 2025

Audi of America

• C A F E S T A N D A R D S

• E M E R G I N G P O L I C I E S

• I N F R A S T R U C T U R E

New Competition

New

Regulations

New

Business Models

New

Technologies

E L E C T R I F I C A T I O N •

A U T O M A T I O N •

S H A R E D O W N E R S H I P •

SHIFT: Landscape

Audi of America NABA Dashboard Strategies – February 16, 20175

Connectivity SHIFT: Assumptions

Electrification

Automation

Digitalization

Connectivity

The car needs a map vs.

the map needs the car

Value in info sent to

vehicle vs. value in data

coming from vehicle

Vehicle connects to the

network vs. vehicles

ARE the network

Range anxiety vs. range

management

Infrastructure limits

mobility vs. infrastructure

powers adoption

Electrification

Digitalization

Brand experience based

on transportation mode

vs. one brand experience

across multiple modes

Privacy brings security

vs. greater security

through immersion

Automation

Assisted helps improve

driving vs. Autonomous

prevents accidents

User interface reduces

distraction vs. UX drives

engagement & comfort

Audi of America

Product

SHIFT: Business

People

Boomers and Gen X vs. Millennials

Dealers as the new digital hub

Technologists as the new brand specialists

New skills, distributed workforce

Digital-focused teams

The Vehicle is the product vs. the product is also Software,

Features and Experience

Targeting products to Segments vs. Multiple needs addressed with

one product

Residual value management vs Potential value optimization

HQ vs. Tech Hub

Sold as equipped vs. ongoing Digital sales

Mobile platforms drive Digital experiences

People

Product

Process

Process

Audi of America

Future Services

Ownership Priorities

New Expectations

Shifts in revenue models are a big

opportunity

Future Services

How to sell services our customers will want and

expect?

What vehicle-enabled services can we offer our

customers?Ownership Priorities

Multi-party leasing

Car-sharing, Ride-sharing

Subscription models

New Expectations

The vehicle as the fifth screen opens potential revenue

opportunities.

SHIFT: Revenue

Thank you!