Audi continues to maintain its healthy progress. 1999 was yet another successful year in the history of our company. We systematically extended and rejuvenated our product range, and were able to strengthen our competitive position.

The key data for the past year are a suitable reflection of our achievements. For the first time, we attained the ambitious goal of recording sales of over 600,000 vehicles. Sales revenues likewise rose to a new record level of DM 29.6 billion. Mid-way through 2000 we will be launching the world’s first volume-built alu-minium

car in the guise of the Audi A2. The A2 opens up a new chapter in the annals of automotive history: it embodies a responsible approach to fuel consumption, emissions and the road space it occupies, without forgoing driving enjoyment, com-fort and safety.

Overtly sporty S models, which we have been supplying since 1999, from the S3 to the S8, are further cornerstones of our brand success. The RS4, one of the most powerful cars on the market, is our new standard-bearer among those models built for sports driving.

Audi has experienced breathtaking growth in recent years. Our aim is to con-solidate and build on our strong market position. Both in relation to sales revenues and in absolute terms, our capital investments remain at a very high level; in 1999 we invested about DM 3 billion. In 2000 and over the next four years we intend to spend a total of around DM 16 billion on new products and production facilities, to cement our claim of
»Vorsprung durch Technik«.

This high level of expenditure is a central component of a strategy which looks further than the short-term maximization of profit. Rather, it is our aim to make pro-vision for the future during periods when earnings are high. In this way, we intend to create new opportunities for company earnings in the medium and long term, thereby further enhancing our outstanding competitive position.

Our products equip us ideally to move forward with purpose. Our innovations throw down a challenge to our competitors. We have already laid foundations which will enable us to build on our past success, and our highly qualified workforce will stand us in good stead for this task.

Our thanks are due to all those who helped to make 1999 such a successful year. We are particularly indebted to our customers for their continuing confidence in us.


Ingolstadt, March 15, 2000


Dr.-Ing. Franz-Josef Paefgen
Chairman of the Board of Management