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Audi

Communications
Speech

CarIT Congress 2014
Prof. Dr.-Ing.
Ulrich Hackenberg
September 30, 2014 | Hanover


Audi
Communications
CarIT Congress | September 30, 2014 | Hanover

* You can view a list of fuel consumption figures for all named models available on the
German market at the end of this speech. | 1
Speech
CarIT Congress 2014

Prof. Dr.-Ing. Ulrich Hackenberg
Board Member of AUDI AG, Technical Development

Hanover, 30 September 2014

- Check against delivery -

Dear ladies and gentlemen,

As an engineer and Board Member for Technical Development, I am committed to our motto of 'Vorsprung
durch Technik', which has defined what Audi does for decades now. Today, and in upcoming years, the key
priority of the automotive industry will be to shape the future of mobility.

On our way, we are developing products, that are efficient and sustainable, connected and intuitive. We are
creating a new dimension of connected reality with high-performance assistance systems, connected
infotainment and car-to-car communication. Piloted driving and parking offer considerable gains in terms
of traffic safety, driving convenience and efficiency. And this is how we create a sporty, emotional brand
experience for our customers - at new levels of premium quality.

The mega-trends of the present are urbanisation, digitalisation and connectivity. Growing urbanisation is
one of the drivers for current CO
2
regulations. The global population will grow by around 1.2 billion people
by 2030. Asia will be the focal point with growth of more than 500 million people. People are increasingly
migrating to urban metropolitan regions, and by 2030 it is expected that more than 50 per cent of all
people will live in cities. In China alone, over 260 million people will move from the country to the city by
2030. Growth for Shanghai is forecast to be 11 million people, for instance.

The other mega-trends that we see are digitalisation and connectivity. By 2030, there will be 40 per cent
more smart phones on the market than today. Even today, 90 per cent of smart phone users never have
their phones more than one meter apart from them. And today, customers are already adopting the
innovative pace of the consumer electronics industry as a standard for the pace of the automotive industry.
According to experts, customers increasingly look for even more smart phone functionalities in their cars.
This makes the automobile the largest 'mobile device'. We see another enormous task and responsibility
here: Big data which for us means value-oriented customer management.


Audi
Communications
CarIT Congress | September 30, 2014 | Hanover

* You can view a list of fuel consumption figures for all named models available on the
German market at the end of this speech. | 2
On the one hand, our customers expect convenient applications that give them continued access to
information, fast processing and customised products and services.
On the other hand, they rightly expect secure and confidential handling of their personal data. We have a
clear and unwavering commitment to data protection, and we have established the highest levels of
security standards in handling customer and vehicle data. We will not permit any unauthorised access to
the operating system of our vehicles. When new services are conceptualised, our data security experts are
involved in the process, and they support the entire development phase with security analyses.
Automotive connectivity is becoming increasingly more complex, but for users it is becoming more
convenient and more intuitive. That is part of our premium philosophy.

In 2010, we offered the first online services which included weather, news and traffic information in the
Audi A8. Today, we have a comprehensive range of services for social media platforms, and we are
extending them to the compact segment, too. All Audi A3 models are equipped with these services, for
example. We are continually making additions to our Audi connect line-up, implementing Car-to-X
functions and extending our smart phone integration.
In recent years, we have achieved full on-board connectivity. Back in 1993, we only had a single bus system
and five electronic control units in the Audi A8, but in 2010, the numbers were seven buses and more than
100 control units. Now we are seamlessly connecting the car with the Internet, the owner, infrastructure
and other cars.

We see three stages of connectivity:
1: Connected infotainment: Driving and staying seamlessly connected with excellent quality.
2: Car-to-X: Our Car-to-Infrastructure services connect the driver with the transportation system, and Car-
to-Service connects Audi Customer Service directly to the car.
3: Car-to-Car: Thanks to swarm intelligence, cars are able to communicate with one another.
Allow me to explain this in greater detail:

Stage 1: Connected infotainment: The customer's individual data cloud creates a seamless
transition between work-related and personal media usage with end devices such as navigation, web
services and apps. Our Modular Infotainment Platform (MIB) enables innovation cycles which are in line
with those of the consumer electronics industry. The MIB combines two main units within a tight space: the
Radio Car Control Unit and the MMX board (MMX = Multi-Media eXtension). Besides integrating RAM and
flash memory, the plug-in module also integrates the latest Tegra processor from Nvidia, which processes
all of the online, media voice control, navigation and telephone functions. These hardware components can
be updated over the course of a car's product lifecycle.



Audi
Communications
CarIT Congress | September 30, 2014 | Hanover

* You can view a list of fuel consumption figures for all named models available on the
German market at the end of this speech. | 3
So, we are actually introducing a paradigm shift within the automotive industry. For years now we have
been working together with leading companies in the semiconductor industry along the entire process
chain. This is how we have been able to increase our pace of execution and ensure premium quality.
Both are key to successful innovation.

From 2012 to 2016, we increased our computing performance five-fold. At CES 2014 in Las Vegas, we
presented the second generation of the MIB. It is now going into production in the new Audi TT*, our most
important product highlight of 2014. The T 30 processor from the Tegra 3 series of market leader Nvidia
a four-core chip with a 900 MHz clock speed and a fast graphics processing unit can drive two displays
and execute eight billion computing operations per second. This enables fascinating three-dimensional
images, for example.

At CES 2014, we showcased a milestone in smart phone integration: the Audi phone box with wireless
charging. This innovation has made wireless charging of mobile devices in the car a reality. By combining a
coupling antenna and wireless charging, we are creating optimal synergies for convenient use of mobile
devices in the vehicle.

Audi is the world's first carmaker to develop a fully automotive-compatible tablet. The Audi tablet with its
brilliant 10.2-inch HD screen can withstand extreme temperature fluctuations and mechanical shock. It is
connected to the vehicle via Wi-Fi interface, and together with Audi connect, it offers Internet access using
high-speed LTE. Its core component is the high-performance Nvidia Tegra 40 processor. And so, the car
driver as well as passengers may use any kind of tablet-specific applications at any time.

The ultimate highlight of the Audi TT interior is the Audi Virtual Cockpit: It merges the instrument cluster
and MMI screen to create one central digital unit. It sets new standards with its dynamic animations and
precise graphics. In mid-September, the German magazines "auto motor und sport" and "CHIP" chose the
new Audi TT for their "Car Connectivity Award naming it the "best connected automobile in Germany".


Stage 2: Car-to-X: We are connecting car drivers with the transportation system and making traffic light
phases transparent. Over three-fourths of all German car drivers already deem this important today. The
system displays the speed at which a driver needs to drive to pass through the next traffic light on a green
wave without having to stop. We have already conducted live demonstrations in Las Vegas, Verona and
Berlin. We developed this service based on generally accepted technical standards to guarantee a stable
connection with traffic control servers. Traffic light info has the potential to reduce CO
2
emissions by as
much as 15 per cent.



Audi
Communications
CarIT Congress | September 30, 2014 | Hanover

* You can view a list of fuel consumption figures for all named models available on the
German market at the end of this speech. | 4
Other future development opportunities are services that provide transfer points to local public
transportation or pre-compute available parking spaces along a road. This would make life much easier. In
some cities today, roving vehicles looking for parking spaces already represent one-third of vehicle traffic.

Stage 3: Swarm intelligence and Car-to-Car: Cars will be warning one another of hazards such as
obstacles, accident sites or glare ice. 90 per cent of German car drivers already consider this functionality
to be very important. Intelligent cars could help to save time and minimise risks.

Today's assistance systems have the potential to navigate, guide and stabilise the car and the driver. This is
particularly relevant in urban traffic situations with multi-tasking. Also, this is where our responsibility and
job lies: Driving assistance systems and technologies such as piloted driving and parking can reduce stress,
take on guidance and warning roles, make corrective actions in driving operation and assume driving tasks
in special or emergency situations.

Just a few weeks ago, in California, we were the first company to be granted approval to test piloted driving
on public roads. Now we can begin to test our technology platforms on the highways of the Golden State.
That is significant progress for vehicle testing under real conditions, and it is close to the Audi Electronics
Research Lab (ERL) in Belmont, CA.

Swarm intelligence will help piloted driving achieve a breakthrough. In addition to the sensor data that is
generated in the car, information also comes from the infrastructure and other traffic participants.

Our conclusion: The car is increasingly becoming a 'mobile device' on four wheels. Connectivity is the key to
the car of the future, which makes it an integral part of our premium mobility product line-up.
We have taken piloted driving and parking to production maturity, and we will be the first to introduce it to
the market. Once again, we are demonstrating our power in technical innovation and 'Vorsprung durch
Technik' as the DNA of our brand.

And there is much more to come along the pipeline. You can expect a lot from us both today and in the
future.
Thank you very much.



End





Audi
Communications
CarIT Congress | September 30, 2014 | Hanover

* You can view a list of fuel consumption figures for all named models available on the
German market at the end of this speech. | 5






























Contact

Oliver Strohbach
Communications Technology and Innovation
Tel.: +49 841 89-24277
oliver.strohbach@audi.de




Fuel consumption figures for the named models

Audi TT:
Combined fuel consumption in l/100 km: 7.5 4.2
Combined CO
2
emissions in g/km: 174 110

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