Audi

Profile, History and Status Quo: In 1910, the first Audi car was produced in Zwickau, Saxony. In 1932, Audi merged with three other Saxony car manufacturers (DKW, Horch and Wan- derer) to form the Auto Union AG. The four rings in Audi's logo have their origin in this merger. The company produced cars under the four original brands but production under the Audi brand was stopped in 1940. After World War II, the former production sites of Auto Union were in the Soviet occupation zone and the company was expropriated. Creation of the Company: in Ingolstadt In 1949, the former managers of Auto Union recreated the company in Ingolstadt in Bavaria in West Germany. Production began again with the four ring logo but under the brand DKW. In 1958/1959, Daimler-Benz acquired 100 per cent of Auto Union, which in 1965 was sold to the Volkswagen Group to which it still belongs today. In 1965, the company also switched from two-stroke engines to the modern four-stroke engines, a move that was accompanied by a brand change. From 1965, the Audi brand was used again.

Production of Audi Vehicles around the World: Audi operates under the slogan "Vorsprung durch Technik". With a work- force of 73,000 people, Audi currently produces cars with the Audi brand in the two traditional German production sites in Ingolstadt and in Neckarsulm and in eight more countries in Europe (Hungary, Belgium, Spain, Russia, Slovakia) and Asia (China, India, Indonesia). Two further production countries are planned for the near future: Mexico, where production should start in 2016, and Brazil, where production will start in 2015 (see Figure 19.5). The different factories produce different car models or components and they serve different purposes which will be explained below. One challenge is to guarantee consistent quality. In light of this, Audi has the same motto for every factory: "one name, one standard, everywhere".

Summary and Outlook: Audi uses a sophisticated production strategy in which different configuration strategies are used for different models and components. The increasing shift of market growth away from Western Europe to Asia and the Americas requires a shift in production locations. The new production locations do not replace the existing ones but complement them in meeting the new demand in other parts of the world. Similarly, Audi does not apply the same operation mode in every production country. In some cases, Audi establishes wholly-owned subsidiaries; in others, it partners with other divisions of the Volkswagen Group; and in other countries, alliances with local companies, on different levels and with different strategic relevance, are considered the optimal choice. With different partners and different production countries, it is a challenge to guarantee a uniformly high quality. Audi follows a standard production system everywhere, which is intended to ensure that "made by Audi" entails the same quality no matter where the product comes from.

Questions 5. In the case it was mentioned that 'With different partners and different production countries, it is a challenge to guarantee a uniformly high quality. Audi follows a standard production system everywhere, which is intended to ensure that "made by Audi" entails the same quality no matter where the product comes from.' What tools would you suggest Audi utilize to ensure that high quality is maintained and risk is reduced?