Strategy creation milestones

Knowledge and flexibility. Enthusiasm and knowledge. Security, diversity and synergies. The highest level of competencies. Excellent foundations that, in less than 30 years, have enabled Audi Hungaria to develop into a company that covers the whole spectrum of activitiesof the Volkswagen Group while simultaneously becoming the largest engine producer and one of the most advanced vehicle manufacturers in the world. Our competency-based services now provide the highest level of service to our global clients, while our 12,000 colleagues are responsible for maintaining and operating an entire ecosystem on a daily basis.

We are proud of these stable foundations, from which we are boldly setting sail to explore new directions and new strategic opportunities. In the fast-paced world we find ourselves in, we are ready to meet the challenges of the changing automotive industry, evolve our business model, and travel together on the road to a successful future. Audi Hungaria – Next Level. This is our new strategy, every milestone of which serves our current and future success.

Strategie01 — Erich Auer

Leader,
Corporate Strategy

THE FIRST STEPS

What global trends are impacting the automotive industry? What are our strengths? What are the areas we need to improve on? During the strategy formulation phase, we conducted a comprehensive analysis of all our business areas. We have set a time horizon of 2035, something that provides an opportunity to answer a number of questions related to the future. From early on, we have involved every department in the planning process and sought to ensure that all levels of responsibility are represented in strategy creation, so that the planning framework can be filled with content that comes from us and also speaks to us. In other words, we have already laid the groundwork for Next Level.

We have a strategic framework that can fill all areas of the company with life. This is a flexible, rolling process in which all of our colleagues can participate and make their voices heard, irrespective of the hierarchy.

AUDI NIGHT (29 MARCH)

Stunning! Breathtaking! Impressive! Audi Night. On a Tuesday evening at the end of March, it wasn’t the successes of the Győri Audi ETO KC handball team that the cheers filling the Audi Arena were celebrating. Instead, 800 of our colleagues were listening with bated breath to the words of Alfons Dintner, who outlined the future of the company in an energetic presentation. The event, which saw all colleagues from all levels of responsibility in our community represented, introduced Audi Hungaria’s new strategy with a fantastic show with dazzling lights. It was the beginning of a two-year process that will lay stable foundations for our shared future.

STRATEGIC DIALOGUES

RTSC (30-31 MARCH)

We began the strategy creation process with a two-day conference involving 500 of our colleagues. As we looked to create the future, Tool Factory employees, engineers, managers, HR specialists and assembly specialists – we could go on listing the most diverse areas of Audi Hungaria – sat down together and, taking into account all their different points of view, projected what the future might bring, formulated their ideas and expectations, and searched for answers to the challenges of the coming period. At certain points, there was deep concentration on the serious issues at stake, whereas at other times the venue became a bustling marketplace where different perspectives could be discussed in an informal way. At the end of the two-day conference, everyone felt the same thing: the transformation had begun.

Progress cannot be stopped. We create the future for our children and our grandchildren – of which I have two. We had a vision of becoming a fully-fledged vehicle factory – and we did it. And we will do this, too.

EXPLORATION

PIT STOP WITH STRATEGY AMBASSADORS (20 MAY)

With Audi Night and RTSC behind us, we leapt headfirst into our new strategy. To take it to the next level, our strategy ambassadors met at a Boxenstopp (Pit Stop) event to get to know each other and the issues they care about. During the presentations and workshops, we clarified who would begin working together and in what area, while the framework for cooperation was also defined. Because Next Level affects our community at all levels, we need to start this change together with 12,000 people. The strategy ambassadors made every effort to learn about the Must wins – the success factors of the future – and synchronised their exploration of the themes they will address in their independent research. Important connections were made, synergies were created, and the bright eyes of the participants showed we were on the right track.

INTRODUCING THE STRATEGY AMBASSADORS

In the exploration phase, nearly 70 strategy ambassadors began their work with the primary aim of building bridges between the Strategy Task Force and the different areas of expertise, as well as involving as many people as possible in the strategy-making process. Representing all areas of the company, their role is to mobilise our community, motivate and encourage their colleagues to be bold and open, and also to advocate their innovative ideas. Breaking away from old patterns, the ambassadors are working in new roles, operating independently while also listening to each other, and enriching Next Level with new perspectives from their colleagues.

For me, the role of strategy ambassador means I can look to the future with an entrepreneurial spirit, and responsibly represent my division and also the company on strategic issues. This change will affect all of our people at all levels, which is why it is vital to experience it and consciously prepare for the challenges together, as one. We need perspectives, a change of mindset and a lot of new impulses to embark on this new journey together. Let’s be bold and open to change, because this is also an opportunity for progress!

INTEGRATIONS WORKSHOP (13-14 JUNE)

In parallel to the work of the strategy ambassadors, work also began on eight Must win areas, and the ambassadors shared their achievements during the integration workshop. The two-day event was all about collective thinking and action. What is the path to a successful future? What are the responsibilities of the different stakeholders involved? What working patterns can we adopt from other areas? Exploratory topics were carefully planned and exchanged, and participants identified common points of contact to help each other work together. A thirst for knowledge, motivation, courage and learning. Full steam ahead!

MUST WIN ARTICLE SERIES

Key factors for our future success. Topics that represent the most important challenges for Audi Hungaria. In the autumn of 2022, at the end of the exploration phase, the Must Wins, led by the leads and co-leads, were presented in an eight-part interview series. Building strategic competences, digitalisation of the business model, a culture of inspiration and innovation, e-mobility and further development of vehicle manufacturing, ESG, corporate marketing, SCC and further development of powertrain manufacturing. Our teams of experts are working in these eight areas to find the best priorities for our company. The fact that we are different, that we think differently, while working towards the same goal at all levels of our company, is a great starting point.

Our company has built up a wealth of unique knowledge, competences and experience over the years, which provide an excellent basis for achieving our goals. Every day, Audi Hungaria employees demonstrate that they are open to innovation. They continue to perform their work to an exceptionally high standard in a constantly changing environment. I believe that together we can secure the future of our company.

INTEGRATION

STRATEGY DAYS

After a studious summer period, things accelerated with the onset of autumn as the Strategy Days programme began to involve our five business areas more extensively in the strategy-making process. How can we ourselves contribute to the success of our corporate strategy in the areas of G, S, A, P and F? In five workshops, our staff presented their ideas and motivations, and also highlighted the obstacles to success, in order to constructively remove them from Next Level’s path. Strategic competences, a more intensive opening up to the world, SCC, investing in new technologies, transparency, efficiency, increasing the attractiveness of our site – these were the keywords that came back from the responses in most of the groups.

INTEGRATIONS WORKSHOP (27 OCTOBER)

This autumn’s second Integrations Workshop was another opportunity for our ambassadors and Must win representatives to share their experiences and draw lessons from the recent past. While the ambassadors discussed the results of their exploratory themes, the leads and co-leads’ workshops focused on best practice solutions and challenges in the field. The two teams came together again in the afternoon of the one-day workshop to review the common cross-sections of their tasks and then dive into further strategic tasks with renewed vigour.

VSK AND GENERAL OUTLOOK

December marked the end of the first year of the strategy and the conclusion of the first cycle. At the Vorstandsklaus (board meeting), our leaders assessed this year’s results, monitored the progress of the Must wins, and approved the plans for the period ahead. Because Next Level is a dynamically evolving strategy, we constantly monitor the process and make changes according to the feedback received. 2022 was a test year for strategy building, after which, from next year onwards, each year will be a standard, steady flow, with quarterly phases and recurring events and processes.

For me, the Next Level strategy process is all about engagement, communication, the (re)allocation of resources and connecting minds. What’s special about this job is that it’s never’finished’, the strategy has to be constantly evolving, adapting to changes in the world. The strategic focus is on innovation, shared learning and networking. If an idea or thought is good, it’s not who said it that matters, but what it can do for our culture and our everyday lives. And we have to move, because the auto industry is undergoing a major change of pace in these years.