Audi

Communication

Prof. Rupert Stadler

Speech at the carIT Congress

In the Internet of the Rings:

How Audi is connecting the car
September 23, 2015 | IAA, Frankfurt

Audi
Communication

Speech at the 5th carIT Congress

Future Mobility: Connected & Autonomous
Prof. Rupert Stadler
Chairman of the Board of Management of AUDI AG
Frankfurt, September 23, 2015
Check against delivery

Ladies and gentlemen,

Just 20 years ago, a book was found that was actually intended as a science-fiction novel: Paris in the
20th Century. Jules Verne had written it 150 years ago. But the book disappeared for a long time.
In it, Verne prophesied a modern city full of skyscrapers. He imagined a worldwide connected system with
the transmission of sound and images in real time. Today, we call that the Internet. And instead of the
horses and carriages usual at that time, he imagined gas-powered carriages with pedals. Today, we call
this carriage the Audi A3 g-tron*. And we make the gas it needs with wind power. Mind you, Verne wrote
the book 20 years before the automobile was invented. And he would surely have been a great engineer,
because he was fascinated by the technical ideas of his time. And he combined that interest with an
inexhaustible imagination.
Just like him, we also like looking far into the future. We have just presented our latest e-tron.
The Audi e-tron quattro concept is being shown at this years Frankfurt Motor Show: the first electric car
with a range of more than 500 kilometers. A sporty SUV with excellent acceleration. And with organic
LED displays and lights on board. A fully connected car with piloted-driving functions.
The future of mobility has begun. Lets write the next future novel together. Think of Germany in the year
2030. You leave your office and a car comes to meet you. But theres no-one in it. On the way home, you
participate in a video conference. After that, you relax and close your eyes for a few minutes. You drive
home without any traffic jams although more cars are on the road than ever. When you get home, you get
out and feel relaxed. And your car drives off alone to park and recharge its batteries inductively, without
any cables! You place your shopping in a virtual shopping basket and pay online. Because your car picks up
the food on its own at the supermarkets loading ramp all this is possible!
The automobile will always be the epitome of freedom. It allows us, self-determined and independent of
timetables, to be individually mobile. Thats why the world market continues its growth unabatedly: From
todays 77 million to in five years 88 million new cars delivered each year. But our customers are online
around the clock nowadays. Always on is part of their attitude to life. 50 percent of all Internet users in
Germany access the web while on the move. And 80 percent of people under 30 want their car to be able
to do that as well. Thats why modern cars are connected. We say: The car is getting bigger than the car.

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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Audi
Communication

Thanks to digital possibilities, car driving has become safer and more convenient. In the past two decades,
electrics and electronics have made a lot of progress. Just think of road maps; they used to be essential.
Today, nearly every car has a navigation system. Just to present 25,000 square meters in as much detail as
we do, a map publisher would need 2.5 tons of paper. Or think of innovations such as head-up displays,
traffic-sign recognition, lane assistants or braking assistants.
In the next stage, the car will become part of the Internet of things. To achieve that, we and our suppliers
in the German automotive industry will invest up to 18 billion euros in the next three years. But it will bring
good news for all of us: The annoying search for a parking space will soon be a thing of the past. In a
connected car world, we will drive much more efficiently than now. Electric cars will of course find charging
stations by themselves. A multitude of assistance systems will be there to help us. And, cars will warn each
other of danger. Just take the task of avoiding collisions. 90 percent of accidents happen because of human
failure nowadays. What potential this offers! We have the opportunity to reduce accidents to 10 percent of
current levels. Not by 10 percent, but to 10 percent! This would save the lives of 900,000 people every
year. And worldwide, 36 million people would avoid being injured in a traffic accident.
Professor Wissmann recently and correctly called connectivity a quantum leap for the safety of all road
users. Yes, thats right: The German automotive industry, and we in particular as the brand with the
promise of Vorsprung durch Technik, want to shape such a development from the drivers seat.
IT companies are important partners at our side. But system control, access to safety-relevant systems in
the car from engine management to the accelerator to the brakes will continue to be an exclusively
automotive competence. We owe that to our customers. Because today, they expect more than just
hardware. They expect new services and powerful car IT on board. There is hardly anything left in the car
that we do not control electronically.
Next Monday, the worlds biggest light congress begins in Darmstadt. We will show our matrix-LED
technology there. 50 individually controllable main-beam LEDs precisely adjust to the road. And they make
use of anticipatory mapping data that provides information about the road ahead. The next step is organic
LEDs, which are much more efficient, and are electronically controlled. Without car IT, there would be no
innovation in lighting, drivetrains or assistance systems, hardly anywhere in the car in fact.
E-mobility also profits from connectivity: With an app, the charge status of a battery can be checked. The
air conditioning can be switched on remotely before driving away, as long as the car is still connected to a
charging station. This means that cooling or heating does not take place at the cost of range.
Connectivity increases the importance of information technology in cars. By 2020, half of automotive value
added will be digital. By then, 25 percent of all cars worldwide will be online. Today, that proportion is
about ten percent. And by 2025, there will be hardly any cars that are not online. 1.5 kilometers of cable
and more than control units: An Audi is a rolling data center nowadays. Every hour, an Audi A3 processes
about 25 gigabytes of data. All the A3 models that we will sell this year will process as much data in just six
hours as the entire digital Vatican Library.
How strongly we are connected with the world of bits and bytes is shown by our pioneering role at the
major trade fairs. I well remember our presentation five years ago as the first premium car manufacturer at
the Consumer Electronics Show, the CES in Las Vegas. At first, we were rather skeptical about what would
be waiting for us there between the desert and the casinos. But the gaming industry alone has total

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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Audi
Communication

revenues of 100 billion dollars per annum. Consumer electronics is the toughest and most lucrative market
for electronics. In 2011, we were the first premium car brand in the world to open the CES with our
keynote. Since then, we have been a firm partner of this trade show. And when the first CES was held in
Shanghai in 2015, we thrilled the Chinese audience with a master keynote about the future of driving.
That speaks for the magic that currently emanates from cars into the world of IT. All other car
manufacturers have meanwhile followed us to the CES and other electronics trade fairs.
In the first stage, we brought information and entertainment into the car. Thats why some people call
an Audi a smartphone on four wheels. I prefer to call it the fastest and most powerful mobile device.
With traffic information online real-time traffic-jam reports, with searches for special destinations such
as a list of current sights, with Google Street View which eases orientation in the city, and with social
networks and helpful information services.
In parallel, we are continually further developing the human-machine interface. Capacitive touchscreens
with proximity sensors for example no smartphone in the world offers that. The display recognizes when
the users hand approaches and automatically switches into operating mode. And natural voice recognition
allows the input of a navigation destination with a single sentence such as: Navigate to the Congress
Center Messe Frankfurt. No more is required. We call it one-shot destination input.
In 2014, we launched the Audi virtual cockpit. It does without the usual combination instrument with
analog speedometer and rev counter. Instead, the driver selects what he or she currently wants to see on
the fully digital 12.3-inch display: Navigation or the classical instruments. All our latest models whether
Audi TT or R8, A4 or Q7 already have this feature.
The next stages are gesture control, concave displays for new forms of interior design, and feel screens
that give tangible feedback when touched. At the same time, we have interfaces to the common operating
systems: Android Auto, Apple Carplay and Baidu CarLife in China. We integrate smartphones and important
digital features into our cars very conveniently.
The crucial question for the connected car is: Will we allow the automobile to become just a monitor for
the smartphones apps? That indeed is a power issue between the IT and automotive industries. In this
context, we like to refer to a key strength of the car: With our sensors, it is developing senses. It has
everything it needs on board to calculate a full model of its surroundings in real time. No computer and
definitely no smartphone can do that at present. Only the piloted car has ultrasound sensors as already
used by the parking assistant, long-range radar sensors with a range of more than 250 meters, mid-rangeradar that is already known from the lane assistant, four top-view video cameras around the car for 3D
reconstruction, a laser scanner that supplies highly precise data on objects up to 80 meters away, and a
front camera to recognize traffic signs.
This allows us to recognize everything: from traffic signs to traffic coming from the side in the drivers
blind spot and to dangerous situations of all kinds. And the new super brains of our assistance systems are
as powerful as the entire electronic architecture of an average car of the recent past. Our credo is: When
the sensors are in the car, the intelligence for navigation, assistance systems and piloted driving also has
to be in the car. All from a single source. Thats also a question of safety.

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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Audi
Communication

And its about much more: Its about our customers data. The car is as private as a second living room.
As a car manufacturer, we therefore have a clear position: First: The data from a car belongs to the
customer. He or she alone decides what happens to it. Second: We advocate European data-security
standards. And third: We place value on transparency concerning what happens to the data. That means:
no secrecy or backdoors.
In the Internet of things, this is becoming increasingly important. When our car, our smartphone, our
laptop, our bathroom scales, our toothbrush, our sleep-phase alarm clock, our blood-pressure gauge and
our sports shirt are all connected, either the dream of anywhere, anytime, anyhow is realized, or our lives
become a nightmare of Big Brother is watching you. So there is no alternative to privacy. Lets not take
any shortcuts, ladies and gentlemen!
I will predict another trend: The days of the mobile telephone are numbered. When 50 billion objects are
connected all over the world, which will be the case by the year 2020, then all kinds of digital devices will
have telephone capabilities. Not only our car or our watch, perhaps also our spectacles or our tie. Ralph
Lauren has just launched a wearable device in the form of a sports shirt. It measures important bodily
functions and send them to an app. The question is justified: With so many intelligent devices wont the
concept of the smartphone be obsolete at some point?
These are all arguments for the intelligent car of tomorrow as one of the useful digital devices for everyday
use. For us, an important step in this direction was that we separated the two development cycles from
each other. A car has a product lifecycle of six to eight years. An Apple for example is fresh for just one
season. With IT, the fans are used to innovations every year. New processors regularly give rise to new
possibilities.
Within one car-model generation, we continually integrate new processor generations thanks to the
modular infotainment platform. We have just received the Golden Computer award. It takes its place next
to all the relevant national and international prizes for the best connected automobile. Speed is of the
essence. That applies to all of us here in this room. We need speed along the entire value chain.
The requirements become much more complex as soon as we go beyond entertainment and information.
At the latest with regard to car-to-X, the simple connection between car and smartphone is no longer
enough. We are connecting the car with other cars, with the Audi service station, with the traffic
infrastructure.
The car driver of the future might not want to be a machine operator who monitors the technology.
Who enjoys watching a warning light flashing. The workshop could take over that task and then suggest
when a part should be replaced. Early enough to avoid further damage. Software updates can take place
remotely of course.
But this is a matter of safety-relevant processes that are important for the control of the car. That brings
a changed vehicle architecture. And it requires a powerful, secure backend. It no longer has anything to do
with a smartphone on four wheels.
You know that we are currently securing our access to the worlds best mapping material. Cars will supply
important swarm intelligence for it. This means that online traffic will continue to rise exponentially.

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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Audi
Communication

So we will need faster networks. Thats why the work on the fifth mobile-telephony standard is important.
5G is a precondition for swarm intelligence in real time. When we brought our sales personnel to marketlaunch training courses in the past, it was all about new engines and transmissions. Today, 90 percent of
our training courses are concerned with the new assistance systems.
The first generation of assistance systems was passive. Think of cruise control, which maintains a constant
speed. Thats practical, because you can take your foot off the accelerator. But when there is an obstacle in
your way, it is also rather inconvenient. Thats why the second generation of assistants is active. Sensors
recognize situations, support the human awareness system and react to these situations. The third
generation of digital helpers in the car is also predictive. Whats over the next hilltop? Where might a
traffic jam occur in half an hour? Which alternative route is the best?
This is where the artificial intelligence of the connected assistants comes into play. We use information
that the driver cannot yet have. Predictive assistance systems offer maximum benefits. Because a car that
drives with foresight consumes significantly less fuel than even our current ultra models: Easing off the
accelerator to make use of momentum and remain within the speed limit. Driving in heavy urban traffic
only as fast as necessary to advantage from the green wave.
The new Audi A4, which can be seen here at the Frankfurt Motor Show until Sunday, shows how far our
digital helpers on board have already progressed. The A4 protects you from oncoming traffic when turning
left. It takes evasive action in critical situations. It warns the driver when he or she is reversing and a car
approaches from the side. It helps with parking the car. And it makes sure that no passenger overlooks a
car driving past while getting out. All of this makes driving quite a lot safer.
If one combines all of todays assistance systems, one gains an impression of piloted driving in the future.
The required technology would have filled an entire car trunk five years ago. Today, our central control unit,
the zFAS, is as small as a tablet computer. We are the first brand to realize the management of assistance
systems in a central domain architecture: with the mobile processor EyeQ3 and the Tegra K1 from nVidia.
This is where the decisions are made for all assistants.
We have a long track record for piloted driving: In 2009, a piloted TTS drove the Audi Rings on the salt flats
in Utah. One year later, it drove 156 curves of the legendary rally route up to the top of Pikes Peak in the
Rocky Mountains. In 2012, we were the worlds first car manufacturer to receive a test license for public
roads in California and Nevada. In 2014, our RS7 piloted driving concept lapped the Grand Prix circuit in
Hockenheim at the physical limits. This January, we drove 900 kilometers on the highway to Las Vegas. In
April, Federal Transport Minister Dobrindt experienced the technology in person on the autobahn. In May,
we dared the ultimate test in the dense downtown traffic of Shanghai. And in July, we lapped the Sonoma
Raceway in California faster than any racing driver.
In a word: Our technology is ready for series production. In 2017, the new Audi A8 will drive in traffic jams
in piloted mode. In 2018, we will launch our electric SUV with the same technology. Piloted driving and
parking are currently the highest level of digital complexity. The backbone consists of environment
recognition with numerous sensors, a decision maker that triggers the actions, curve planning that plans
the cars optimal path, drivetrain and steering technology that we control electronically, and a humanmachine interface as the operating concept.

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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Audi
Communication

Why do we want to persuade drivers to take their hands off the steering wheel? Actually, we want to
achieve just the opposite: that our customers enjoy driving so much that they dont want to let go of the
steering wheel any more. The great potential of piloted driving is in situations in which we are either
distracted, overstretched or understretched and thats also dangerous, because its tiring. If the driver
wants to drive, he or she will be able to do so. If the driver wants to let go, he or she will receive support.
In 50 years, people might ask: Why did they touch the steering wheel at all? Insurance companies will offer
cheaper rates for cars with piloted driving. It will be a luxury and a rarity to drive oneself.
But lets think further: If all the cars on the roads are connected, we no longer need traffic lights. The cars
filtering into a crossroads will look as harmonious as a ballet performance. We will no longer need valuable
space in city centers for parking garages: Our cars will take us into the city and then drive alone to parking
garages out of the center.
In the end, the car will become a time-saving machine. Thanks to big data and swarm intelligence, we will
use our resources much more efficiently in the future. The German automotive industry will not leave this
key technology to Silicon Valley. But, in the United States, everything that is not expressly prohibited is
allowed, whereas here, everything that is not expressly allowed is prohibited. We need innovation-friendly
framework conditions. And, lets take the consumers with us on this journey. Because a more important
point than what is technically possible is the question of what one group wants: the customers.
Thank you.
End

Contact
Jrgen De Graeve
Corporate Communications
Tel.: +49 841 89 34084
juergen.degraeve@audi.de

Fuel consumption of the models named above:

Audi A3 Sportback g-tron:
CNG consumption in kg/100 kilometer: 3.6 3.3;
Combined fuel consumption in l/100 km: 5.5 5.1;
Combined CO2 emissions in g/km (CNG): 98 89;
Combined CO2 emissions in g/km (gasoline): 128 117

(Values vary depending on engine/transmission/wheels/tires.)

5th carIT Congress 2015 | September 23, 2015 | IAA, Frankfurt

* The fuel consumption of all models named above and available on the German market can
be found in the list provided at the end of this speech.

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