Progressmagazine SPRING/10

The new one

C o N C e N t R at e d V o R S P R u N G d u R C h t e C h N I k

Progress magazine / 03

NEWS //

A 450PS 4.2-litre V8 engine, S tronic

transmission, latest generation quattro and

impressive specification mark out the new RS 5

Coupé, now available to order at £57,480 ROTR.

Instantly recognisable by its trademark RS

oval tailpipes and speed-activated rear spoiler,

the RS 5’s unique suspension settings give it

a purposeful stance that’s 20mm lower than

standard. Muscular 19” ‘five-spoke Aero’ design

alloy wheels, swivelling Xenon headlights with

LED daytime running lights, LED rear lights and

full RS body styling are further identifiers.

The RS 5’s Dynamic Ride Control (DRC)

adaptive damping system is adopted from the

RS 6, while quattro all-wheel drive with sport

differential offers unrivalled dynamics.

Inside, electrically adjustable super sports

seats in black Silk Nappa leather join carbon

fibre and aluminium detailing and an RS multi-

function steering wheel with gearshift paddles.

Despite its 0-62mph time of 4.6secs and

governed top speed of 155mph (law permitting),

the RS 5 returns 26.2mpg on the combined cycle.

The Audi A1 was the undoubted star of Audi’s

stand at the Geneva Motor Show.

Bringing true premium quality and

technology to the compact sector, the A1 is

positioned below the A3 where it will create a

new entry point to Audi ownership, with prices

starting from £13,145 ROTR.

Three trim levels – SE, Sport and S line – are

available to order from May with, initially, three

engines offering spirited performance with

outstanding economy and low emissions.

Key to the A1 range is the availability of

features and technology usually reserved for

bigger cars, enabling buyers to customise their

cars to their own tastes.

Standard features on all models include

alloy wheels, air conditioning, a single CD audio

system with MP3 compatibility and ESP with latest

differential lock system. Options include Audi’s

innovative S tronic twin-clutch transmission, and

all versions will offer the option to upgrade with

features such as a BOSE® sound system, DAB radio,

the Audi Music Interface for iPod connection,

cruise and parking distance controls and the Multi

Media Interface (MMI) navigation plus system.

The 1.2 TFSI petrol models offer 85PS, while the

1.4 TFSI develops 122PS. The 1.6 TDI unit delivers

105PS and combined consumption of 70.6mpg.

Both the 1.2 TFSI and 1.6 TDI engines emit

less than 120g/km of CO2, qualifying them

in the lowest BIK tax bands in 2010/11, while

the 1.6 TDI is also eligible for a 100% first-

year capital allowance write-down with its CO2

emissions of just 105g/km.

Sensational RS 5 tops A5 Coupé range

New A1 premium compact extends prestige Audi values to small car sector

2010 Will go down as another landmark

year for Audi as it sees the introduction of

the A1 premium compact model, revealed

at the Geneva Motor Show.

The A1 represents a new gateway into

the Audi brand, and embraces our core

values of premium quality and prestige

with a package that offers a refreshingly

modern look in a class dominated by retro

design aesthetics – see page 8.

This issue of Progress also celebrates

the third incarnation of the Audi e-tron

pure electric car concept. Proving that

performance and driver appeal need not

be sacrificed for practicality, the original

e-tron concept was unveiled at Frankfurt

last September. It evolved for the Detroit

Show in January, with Geneva hosting the

A1 e-tron concept as a premium electric-

powered city car. Read all about the e-tron

dynasty on page 10.

IAIN CARMICHAEL

HEAD OF FLEET SALES

AUDI UK

Audi Fleet Sales Audi UK Yeomans Drive Blakelands Milton Keynes MK14 5AN

0870 241 5663

audifleetsales.co.uk

While every effort has been made to ensure the contents of this magazine were accurate at the time of going to press (May 2010), the information given with regard to the tax liability of drivers is for guidance only. The tax position for different drivers will vary according to their personal circumstances and drivers should consult a tax accountant for specialist advice. All tax figures are based on the latest production models. Please check with your supplying dealer for the official carbon dioxide emissions of the model in which you are interested. The right is reserved to change specifications, features and prices without prior notice. To avoid misunderstandings, please contact Audi UK on 0870 241 5663 for advice on any alterations made since the date of publication.

03 //

10 //

08 //

12 //

13 //

CoNTENTS //

0 3 // N E W SThe Audi A1 debuts at Geneva, as well as a new A8 Hybrid

0 8 // T H E A U D I A 1Not just a new model but a whole new segment for Audi

1 0 // A U D I E - T R O NPure electric power has never looked or performed this well

1 2 // A 6 S L I N E S P E C I A L E D I T I O NTempting specification at a highly tempting price

1 3 // E X T E N D E D C O N T R A C T SIs running your cars longer a viable way of saving money?

1 6 // G R E E N E R M A C H I N E SNearly 180 Audis have CO2 emissions of 160g/km or less

1 7 // A U D I F L E E T S A L E SSales team contact details, plus enter our Manchester United tickets competition

PH

OTO

GR

AP

HY:

PE

TER

BU

RN

F O R M O R E I N F O R M AT IO N O N T H E A U DI A 1

P L E A S E S E E PA G E 8 O R V I S I T A U DI .C O. U K /A 1Cert no. TT-COC-002342

Progressmagazine

The Detroit Motor Show Audi e-tron concept uses

rear-wheel drive instead of a quattro layout

NEWS //

Progress magazine / 05

Detroit e-tron displays further concept in Audi electric vehicle design

What Car? award for A1 even before launch

New AFS contract hire and leasing manager

A3 1.6 TDI now with 99g/km CO2

Following on from the original Audi e-tron

concept’s unveiling at the Frankfurt Show, a

second e-tron sports car concept, revealed

at Detroit, takes an alternative approach to

electric car design.

Smaller than the original e-tron, the

Detroit show car uses rear-wheel drive only

rather than the original’s all-wheel drive

quattro layout.

Coupled with its low weight of 1,350kg, and

two electric motors mounted on the rear axle

with a combined output of 204PS and 2,650Nm

of torque, acceleration from 0-62mph takes just

5.9secs in the Audi Space Frame-design (ASF)

aluminium car. Top speed is limited to 124mph

as the amount of energy required by the electric

motors increases disproportionately with speed.

The latest lithium-ion batteries are located

behind the passenger compartment and ahead

of the rear axle for optimal weight distribution.

An effective energy content of 45 kilowatt-

hours is available, making an operating range

of up to 155 miles realistically possible.

The Detroit e-tron is able to distribute its

electric motors’ torque between the wheels

entirely as required. Its ‘torque vectoring’ is

the key to a thrilling level of active precision

and excellent traction.

Thanks also to its low weight, short

wheelbase and ideal weight distribution, the

e-tron has go-kart-like dynamic ability – agile,

good on bends and neutral right up to the

handling limit.

Readers of What Car? magazine voted to crown

the Audi A1 the ‘most exciting car of 2010’

even before the car was revealed at the Geneva

Motor Show. In the process, it secured Audi’s

new premium compact model its first major

magazine award.

The ‘Reader Award – Most Exciting Car’,

announced at the 2010 What Car? Awards,

went to the A1, or more accurately the A1

concept symbolised by the 2007 A1 project

quattro design study (pictured above). It

received the most votes in a poll of readers of

the magazine’s online edition at whatcar.com.

What Car? editor, Steve Fowler, said:

‘A new, small Audi sounds like an enticing

proposition and our readers seem to agree,

voting it the most exciting new car to be

launched this year.

‘Although we haven’t seen the finished car

yet, a funky small car with an Audi badge on

the nose and aimed directly at the MINI can’t

fail to succeed. It should be a strong contender

for our Car of the Year Award in 2011!’

Warren Richards, pictured above, is the new

National Contract Hire and Leasing Manager

for Audi Fleet Sales, replacing Andy Wady.

After six years within the Volkswagen

Group spent both in Škoda Marketing and

in a senior planning role for Group Services,

the administrative division supporting all

Volkswagen Group brands, Warren can also

draw on management experience gained with

Continental Tyres.

Reporting directly to Head of Fleet Sales,

Iain Carmichael, Warren is charged with the

task of continuing to develop the key Contract

Hire and Leasing elements within the brand

in challenging trading conditions. He also

assumes responsibility for the Audi Direct

Sales channel, Motability and Rental.

Demonstrating Audi’s commitment to

efficiency, the A3 1.6 TDI is exempt from

Vehicle Excise Duty with its CO2 emissions of

just 99g/km.

A revised final drive ratio, low rolling resistance

tyres, lowered ride height and modified underbody

aid streamlining also help the A3 1.6 TDI achieve

impressive combined consumption of 74.3mpg.

Available to order now in Standard trim

only, priced at £18,315 ROTR, specification

includes 15” ‘7-arm’ design alloy wheels, manual

air conditioning, remote central locking, electric

front windows and a Chorus radio/single CD.

Meanwhile, A3 and A3 Sportback 1.6 TDI SE,

Sport and S line models continue to be available

with CO2 emissions of 109/gkm and combined fuel

consumption of 68.9mpg, with prices starting from

£18,965 ROTR.

F l E E T C o 2 E M i S S i o N S F A l l A g A i N //

The CO2 emissions of Britain’s business car fleets

fell still further last year, according to the latest

figures from the British Vehicle Rental and Leasing

Association.

The BVRLA’s members, who operate a

combined fleet of around 1.6 million vehicles, saw

average CO2 emissions of vehicles leased from

them in 2009 fall to 144.0g/km – a drop of about

4% from the 149.9g/km reported in 2008 and 9%

on the 2007 figure. According to the Society of

Motor Manufacturers and Traders, average new

car emissions in 2009 fell to 149.5g/km.

“Our members continue to lead the way in

lowering road transport emissions and disproving

the myth that company cars are ‘gas guzzlers’,” said

BVRLA chief executive, John Lewis.

E l E C T R i C V E H i C l E g R A N T S E T //

The Department of Transport has announced

that buyers of electric vehicles will be eligible for

a ‘Plug-In Car Grant’ of up to £5,000 as part of a

new £230 million incentive programme.

The grant, which goes live from January

2011, will allow buyers to claim back a quarter

of the cost of purchasing an electric car, up to

the £5,000 cap, and is conditional on the vehicle

meeting a number of criteria set by the Office

for Low Emissions Vehicles (OLEV).

These will include a minimum 70-mile

range, top speed of 60mph and minimum three-

year warranty, as well as EC type approval and

EuroNCAP crash testing.

In combination with the vehicle grant,

the DfT has also instigated a £30 million fund

for a network of electric vehicle hubs – called

‘Plugged-In Places’ – to create the charging

infrastructure.

London, Milton Keynes and the North East

initially will trial a scheme to create more than

11,000 vehicle recharging points during the next

three years.

PH

OTO

GR

AP

HY:

PE

TER

BU

RN

PH

OTO

GR

AP

HY:

PE

TER

BU

RN

F O R M O R E I N F O R M A T I O N P L E A S E C A L L

0 8 7 0 2 4 1 5 6 6 3 O R V I S I T A U D I . C O . U K / A 3

NEWS IN BRIEF

NEW AUDI A8 HYBRID TECHNOLOGY CONCEPT

Progress magazine / 07

NEWS //

Audi tops FN50 dealer reliability poll

Headline awards success for Audi A3 and A4 from Fleet News and Business Car

New A8 showcases latest Audi technology at Geneva European debut

Audi’s recognition of the importance of the

fleet market has paid dividends with a poll-

winning performance in the Fleet News 50’s

dealer reliability category.

BMW was pushed into second place after

27 of the 34 companies who ranked franchised

dealer networks placed Audi in their top five.

Volkswagen came some way behind the top

two, in third place, although still ahead of Ford

in fourth. Mercedes-Benz was sixth behind

Honda, ahead of Toyota in seventh. Škoda was

eighth with Vauxhall and Citroën rounding

out the roll of honour. Lexus was a notable

absentee from the top ten.

The survey commented positively on

Audi’s performance: “Through investing time

and money in Audi Centres, staff training

and customer service, Audi has been able to

attract and retain fleet customers with all the

potential that entails both in terms of new car

and aftersales business”.

Audi has scooped several prestigious awards from

the fleet industry’s premier fleet publications.

The A3 and A4 took the trophies for ‘Best

Small Premium Car’ and ‘Best Large Premium Car’

at the Fleet News Awards, widely acknowledged

as the ‘Oscars of the Fleet Industry’.

The Fleet News Awards judges, comprising

industry experts, fleet managers and magazine

staff, commented that “the A3 has evolved into

the strongest fleet proposition in its sector, and

has more appeal to a broader fleet audience”.

The A4, meanwhile, was cited as “one of the

most desirable cars in its highly-competitive

sector, with running costs among best in class

and a class benchmark for build quality and

interior finish”.

Audi’s success continued at the Business

Car Awards, with the Audi Q5, A8 and R8 each

claiming the magazine readers’ citations for

‘Best in Category’.

The Audi Q5 was named ‘Small 4x4 of the

Year’ while the A8 broke a trend at the Business

Car Awards by taking the ‘Luxury Car of the Year’

category for the third year running.

Looking to the future, Business Car noted:

“Life will get even more interesting for the Audi

Q5 later this year when it becomes the company’s

first full hybrid model.”

The Audi R8’s ‘Sporting Car of the Year’ award

was described as “a victory that best sums up

Audi’s upward shift, with the premium brand now

moving in the most elite of circles.”

Summarising the 2010 awards, Business Car

said: “These winners are selected purely via our

secure online voting system to make sure the

prizes go to companies that are doing the best

job. The results can be seen as a fair and accurate

portrayal of which organisations are highly

regarded by the fleet community.”

The Geneva Show marked the European debut

of the new Audi A8, whose all-aluminium

construction and advanced technology is set to

take luxury and sporting appeal to a new level.

Technical highlights available on the new

A8 include adaptive air suspension, Audi drive

select, MMI Touch® featuring handwriting

recognition technology, LED ambient interior

lighting with a choice of three colours,

Advanced key with keyless go and HDD Satellite

navigation with predictive route data enabling

the navigation system to dictate the ideal gear

for a corner or the ideal headlight range based

on the A8’s GPS-defined location.

Available to order now with prices from

£61,975 ROTR, the new A8 is available in SE

and SE Executive trim levels and launches with

4.2 FSI 372PS and 4.2 TDI 350PS engines,

joined later by a 250PS 3.0 TDI. All are mated

to a new 8-speed tiptronic transmission and

latest-generation quattro all-wheel drive.

Later in 2010, a second 3.0 TDI engine with

204PS and lowest-in-class CO2 emissions of

159g/km will join the range.

The new engines offer

economy improvements of up to

22% compared with the outgoing

model, with the 3.0 TDI returning

42.8mpg on the combined cycle

and CO2 emissions of 174g/km.

F O R M O R E I N F O R M A T I O N

P L E A S E C A L L 0 8 7 0 2 4 1 5 6 6 3

O R V I S I T A U D I . C O . U K / A 8

An Audi A8 Hybrid concept, displayed alongside the

new A8 at Geneva, maximises efficiency by using an

electric motor alone or a combined petrol/electric

drivetrain.

Its 2.0 TFSI petrol engine works with an electric

motor to develop total output of 245PS and 480Nm

of torque, enabling the A8 hybrid to accelerate from

0-62mph in 7.6secs and reach a top speed of 146mph.

Yet average economy of up to 45.6mpg is achieved with

CO2 emissions of 144g/km.

During coasting or braking, the electric motor

acts as a generator that converts kinetic into electrical

energy and recharges the lithium-ion battery.

The technology offers a glimpse of a future

production model – the Audi Q5 hybrid – which will be

introduced later in 2010.

State of the art lithium-ion battery pack

High-voltage electrical harness

Electronics for the hybrid propulsion system

Electric motor

2.0 TFSI petrol engine

Progress magazine / 09

THE NEW AUDI A1 //

The new one

The A1’s modern dynamism continues

inside with fresh, contemporary style,

high quality materials and many

customising opportunities

Audi drivers have come to expect powerful,

dynamic and progressive design so it is no

surprise the Audi A1 is the definition of

concentrated Vorsprung durch Technik.

Its modern and sporty looks embrace

Audi’s prestige DNA in the premium compact

segment, where the A1 will compete with the

MINI, Alfa Romeo MiTo and Fiat 500, and it

establishes a new benchmark for technology

in the sector.

Premium features and Audi’s renowned

build quality and finish enable customers

to enjoy traditional Audi values in a car that

forms a new gateway to the brand.

The A1 uses the latest TFSI petrol and

TDI diesel engines, combined with fuel-saving

start-stop and recuperation technology.

The 1.2 TFSI 85PS unit is available in three

trim levels – SE, Sport and S line – while CO2

emissions of 118g/km qualify these models in

the 10% BIK band – the lowest possible.

Meanwhile, the 1.6 TDI 105PS is also

available in SE, Sport and S line trim, and

with CO2 emissions of just 105g/km, is – like

all A1 models – exempt from first-year VED.

Sport and S line models are also

available with a punchy 1.4 TFSI 122PS

petrol engine, with the option of Audi’s

advanced 7-speed S tronic transmission.

Priced from £13,145 ROTR for the 1.2

TFSI SE, the Audi A1 competes directly with

established class rivals but offers enhanced

standard equipment and unusually

comprehensive option availability.

Sophisticated features such as

Electronic Stability Programme (ESP), alloy

wheels, air conditioning, height-adjustable

front seats, radio/CD with MP3, AUX-IN and

SD card reader, plus a 6.5” dash display,

are all standard equipment. Optional LED

lighting, DAB digital audio, HDD satellite

navigation with Bluetooth® function and

the striking roof contrast line offer drivers

the opportunity to personalise their cars.

A wide range of audio, comfort and

technology packages offers maximum cost-

effectiveness, while even the interior air

vent sleeves can be specified in a range of

finishes for a truly bespoke look.

Customers can also choose a panoramic

open sky sunroof, split into two glass

sections with the front panel able to be

tilted or opened completely.

The Audi A1 opened for ordering on

6 May 2010, with first deliveries expected

at the beginning of November.

All data correct at date of publication, 22 June 2010. Source: CAP Motor Research. 1 BIK tax figures quoted per month in 2010/11. 2 Over three years/60,000 miles. Source: CAP Monitor, June 2010. Please note: Audi A1 model illustrated may not be to exact specification detailed above.

Audi A1 1.4 TFSI 122PS Sport 3dr

£15,345£15,290D/£0TBC/TBC/52.3122PS 126£293£38/£7625.14

Standard (16”)ManualStandardRadio/CD with MP3, AUX-IN and SD card reader StandardStandard (Bluetooth®)£500£300 (rear)

MINI COOPER1.6 Sport Pack 3dr

£16,700£16,645D/£040.9/61.4/52.3122hp127£319£41/£8327.02

Standard (17”)ManualStandardRadio/single CD

Standard£295 (Bluetooth®) £335£245 (rear)

Alfa Romeo MiTo 1.4 MultiAir Lusso 3dr

£15,045£14,990D/£038.2/62.8/50.4135hp129£287 £37/£7428.38

Standard (16”)ManualStandardRadio/single CD with MP3Standard£300 (Blue and me®)£410£220 (rear)

On the road priceP11D priceFirst-year VED (2010/11)Urban/extra urban/comb’ mpgPowerCO2 emissions (g/km)Class 1A NIC 2010/11BIK tax 2010/11 (20%/40%)1

Cost per mile (p/mile)2

EquipmentAlloy wheelsAir conditioningESPAudio system

Split-fold rear seatMobile phone interfaceMetallic paintParking sensor

THE AUDI A1 AND COMPETITORS

F O R M O R E I N F O R M A T I O N O N T H E

A U D I A 1 P L E A S E V I S I T A U D I . C O . U K / A 1

T h e A u d i A 1 w a s r e v e a l e d a t G e n e v a a n d e n c a p s u l a t e s c o n c e n t r a t e d V o r s p r u n g d u r c h Te c h n i k

Left: the A1 e-tron is

the latest member of

Audi’s e-tron family.

Revealed at the Geneva

Motor Show in March,

it joins the original

Frankfurt and Detroit

Show e-tron models

in showcasing Audi’s

latest electric vehicle

technology

Exemption from benefit-in-kind tax for five years from

April 2010, zero VED liability and the announcement of

a new Government support scheme of up to £5,000 per

vehicle for businesses buying ultra-low carbon cars (see

page 5), means new light is being thrown on electric cars.

And with the exciting new A1 e-tron concept, unveiled

at the Geneva Motor Show, backing up Audi’s revolutionary

Frankfurt and Detroit Show e-tron concepts, Audi is at the

forefront of developments.

For fleets looking to provide business transport in the

most cost-efficient and ordered way possible, it means a lot

of thought needs to go into shaping future strategy.

While hybrid petrol-electric vehicles certainly have a

role to play in carbon emissions in the medium term, it

seems that of all the potential solutions electric cars are

currently favourite to break the petrol-diesel hegemony.

Certainly most Governments around the world now

believe electric cars have the potential to become major

automotive players.

The British Government is one, and has made a

commitment worth around £400 million to accelerate

the transition to ultra-low carbon vehicles by introducing

charging stations and providing funding for technology

development.

It is also keen for businesses to take up the electric

challenge: Minister of State for Transport, Sadiq Khan,

explains the Government’s desire for businesses to provide

the momentum electric vehicles will need:

“I hope to see local authorities, businesses,

development agencies and electricity companies come

together to propose innovative schemes to help build local

markets for electric cars,” he says.

The new Government incentive scheme, scheduled

for launch in January 2011, shows there is considerable

ministerial emphasis on an electric car project, and even

with an election and potential shift in power looming there

seems to be consensus among political parties that electric

vehicles must be given every chance to succeed.

Positive in theory, positive in practice

So the sentiments are positive, but can electric cars work

for businesses?

As a general rule, electric cars cost more than

traditionally-fuelled cars to operate due to the high cost

of replacing the batteries, although a scheme to lease the

batteries may offer a solution.

Such a scheme, if undertaken by manufacturers,

lifts much of the concern around electric cars. Added to

that is the fact that electric cars run on a fundamentally

inexpensive and available fuel and are currently zero-rated

for Vehicle Excise Duty and Benefit in Kind tax.

In London, a 100% discount from the Congestion

Charge is also in place, while the advent of free parking and

plug-in points in some Boroughs is likely to make electric

cars more convenient and cost-effective.

Yet in the long history of alternatively powered cars,

one lesson has been learned above all others: if the product

is unattractive, it is unlikely to be sold in any number

irrespective of its positive impact on the environment.

That is why Audi, committed to the concept of pure

electric power, has developed the sporty and stylish e-tron

concept cars using all-electric drive powered by the latest

lithium-ion batteries giving a range of up to 155 miles.

The Detroit Show e-tron concept (pictured opposite,

above right) uses a lightweight aluminium Audi Space

Frame (ASF) design and two electric motors with a

combined output of 204PS.

That’s enough to give the e-tron acceleration from

0–62mph in just 5.9 seconds, and illustrates that ultra

low-emission cars can be exciting and sporty. With its low

weight, short wheelbase and perfect weight distribution,

the Audi e-tron has the dynamic handling and driveability

of a go-kart.

The new Audi A1 e-tron

Conceived as a four-passenger, two-door ‘Mega City Vehicle’

(MCV) for use in metropolitan areas, the Audi A1 e-tron is

equipped with a powerful electric motor for zero-emission

city driving in the city, and also has an internal combustion

engine that recharges the battery in exceptional

circumstances. Continuous power output is rated at 61PS,

with peak power of 102PS available in short bursts.

In zero-emission electric-only mode, the A1 e-tron can

travel 31 miles, but for longer distances a 254cc single-

chamber Wankel rotary petrol engine acts as a range

extender by charging the battery.

With its fuel tank capacity of 12 litres, the A1 e-tron

can travel up to 124 miles using the range extender; both

operating modes yield a fuel economy figure of 148.7mpg,

corresponding to overall CO2 emissions of just 45g/km.

Summary

With the technology now available to build truly viable

pure-electric cars, the Audi e-tron models show genuine

progress is being made in the field. And with the

announcement of fiscal incentives to opt for electric power,

drivers do not have to make driving or design compromises

– the age of electric cars in everyday use is rapidly dawning.

F O R M O R E

I n F O R M A T I O n O n

T H E A U D I E - T R O n

C O n C E P T C A R S ,

P L E A S E V I S I T

A U D I . C O . U K

Progress magazine / 11

ALTERNATIVE FUELS //

FUELLInG THE FUTURE

T h e f u t u r e f o r e l e c t r i c c a r s i s i n t r i g u i n g , e s p e c i a l l y w i t h a n e w £ 5 , 0 0 0 G o v e r n m e n t i n c e n t i v e f r o m 2 0 1 1 , a n d A u d i ’ s e - t r o n c o n c e p t s l e a d t h e w a y

_15

NEW 2010 AUDI A6 S LINE SPECIAL EDITION //

INTRODUCING THE NE W FULLY-EQUIPPED AUDI A6 S LINE SPECIAL EDITION

A fusion of style and Le Mans-winning engine technology. From £29,720 ROTR

> 19” alloy wheels> S line body styling> Xenon headlights> LED daytime

running lights> Metallic paint> Rear parking

sensors

> Milano leather upholstery

> DVD satellite navigation> 6CD changer> Bluetooth® telephone

preparation> Sports seats> Heated front seats

AUDI A6 2.0 TDI S LINE SPECIAL EDITION COMPARED WITH BMW 520D SE

New BMW 520d SE

£31,630£31,575D/9047.9/65.7/57.6184hp129£727£94/£189

17”Single£2,045 (Professional)Standard£640Standard (Bluetooth®)£900N/A

Audi A6 2.0 TDI 170PSS line Special Edition

£30,200£30,020F/12537.7/60.1/49.6170PS149£806£105/£210

19”6CD changerStandard, DVDStandardStandardStandard (Bluetooth®)StandardStandard, LED

Adjusted ROTR price1 P11D price VED band/£ (2010/11)Urban/extra urban/comb’ mpgPower CO2 emissions (g/km)Class 1A NIC 2010/11 BIK tax 2010/11 (20%/40%)2

EquipmentAlloy wheelsCD playerSatellite navigationLeather upholsteryMetallic paintMobile phone preparationXenon headlightsDaytime running lights

All data correct at date of publication, 2 June 2010, but may be subject to change without notice. All TDI-powered Audi models are fitted with a Diesel Particulate Filter (DPF) as standard. Source: manufacturer information. 1 Price adjusted for specification. 2 Quoted monthly. 3 Subject to confirmation. For further information on the Audi A6 2.0 TDI 170PS S line Special Edition, please visit audi.co.uk/a6

Extending your vehicle fleet operating cycle can be an

attractive option for businesses in the face of a tough

trading environment and reduced profit margins,

especially with fleet funding being still relatively

difficult to come by.

Recession-derived industry dynamics such as staff

redundancies and pay freezes over the last 18 months

have made it unpalatable for some companies to

replace existing fleet cars with new ones. In fact, some

industry estimates show that as many as one in four

companies have chosen a vehicle contract extension

of some sort.

But extending a car’s lifecycle is not simply a

question of saying ‘it saves us the expense of acquiring

new cars’. There is a multitude of factors that needs

to be addressed before you make the leap, because if

you go into it without having done the proper research

and cost analysis you could find your plan to save cash

turns into a financial and administrative nightmare.

So, whether you lease or buy, what are the

Above: extending

the life of your fleet

vehicles may seem

attractive in the wake

of a recession, but

there are many factors

to consider before

taking the plunge

Progress magazine / 13

SAVING MONEY //

Long term commitmentV e h i c l e c o n t r a c t e x t e n s i o n i s a p p e a l i n g t o f l e e t s w a n t i n g t o c u t c o s t s i n t h e w a k e o f t h e r e c e s s i o n . B u t c a n t h e b e n e f i t s o u t w e i g h t t h e p i t f a l l s ?

>>

CONTRACT EXTENSION: DOS AND DON’TS

implications of holding on to cars for

longer, perhaps extending operating cycles

from three years/60,000 miles to four

years/80,000 miles?

From a depreciation point of view, most

new cars suffer the worst losses in the first

two years. Plot depreciation against time

and mileage and the curve is at its steepest

in years one and two, whereupon it tends to

flatten out.

It means a few extra months and a few

extra miles should not have any significant

financial effect on the value of your fleet.

Don’t, however, be tempted to push

things too close to 100,000 miles.

Despite a used car market that has shown

unprecedented buoyancy over the past

few months, with some auction houses

reporting record prices as quality stock

becomes scarce, any residual value expert

will tell you that values begin to slide

quickly as used car buyers shy away from

that psychological milestone.

The funding quesTion

With bank base rates at their lowest for

many years, you need to ascertain what

deals are available and establish if any

option for a new fleet is better value than

what you may already be paying on finance

for cars that are three or four years old.

Bear in mind that new cars will

invariably be more efficient than older ones

in the amount of fuel they use, the CO2

emissions they produce and the BIK tax and

NIC liabilities they incur.

In the longer term it may well pay you to

change now as the benefits you will realise

in lower operating costs may outweigh the

extra expense of extending a contract.

Residual values ReTain sTabiliTy in 2010

Experts looking for long-term value

trends, believe 2010 will be reasonably

satisfactory for residual values, but not

necessarily replicating throughout the year

the current health of the market.

The issue here is that, post election,

nobody knows what remedial action any

Government will take over the public

finances.

Certainly, economists agree there

needs to be some fairly drastic cost-cutting

action in the public sector, with higher

taxation offsetting the UK’s national debt.

Any measures will have an effect on

the used car market, just as they do on

the housing market, because they affect

consumers’ ability and confidence to make

‘big ticket’ purchases such as cars.

So the question you need to ask and

discuss within your business is whether

cashing in now and getting strong prices

for defleeted cars, or sitting it out with

an older fleet for another few months

and seeing what happens, fits with your

financial risk strategy.

The impacT of exTRa mainTenance

If you make the decision to hold on to cars

for longer, the major cost you will encounter

is service, maintenance and repair (SMR).

Over a ‘typical’ 60,000-70,000 mile

three-year cycle SMR costs for the average

car are usually fairly predictable. But

once those mileages and timeframe are

exceeded, things change: most cars will fall

out of manufacturer warranty cover, and all

will start to need an annual MOT test.

Whether you lease or buy, you should

be prepared to renegotiate existing rates,

particularly if your lease agreement

includes maintenance, to take account of

the increased SMR need.

There is also the increased likelihood

of major additional maintenance, such as

cam belt replacement, while the risk of

failure for components such as gearboxes

or clutches becomes greater.

And with longer maintenance downtime

comes other operational issues: if you

require a new gearbox on one of your

vehicles when can this be scheduled in

comfortably? Can the car be back on the

road in less than 48 hours, minimising

replacement vehicle costs? Do you have a

process in place that proves the vehicle has

been properly maintained from a duty of

care point of view?

summaRy

Extending an operating cycle doesn’t

necessarily offer a guaranteed way to curb

costs. You have to be absolutely certain the

benefits will outweigh the disadvantages.

And when you have done the maths,

consider the impact on staff of requiring

them to hold on to their company cars for

another year or more: is a longer operating

cycle likely to be a disincentive for staff

retention and recruitment?

Properly researched, contract extension

can be a benefit, but ensure you evaluate

the economics before committing.

> do...> Evaluate your needs to establish the true

benefits of contract extension.

> Consider the impact of additional,

often significant, maintenance with an

extended operating cycle.

> Prepare to renegotiate your funding rates

in a contract extension, whether buying

or leasing.

> Observe staff reaction to an extended

contract: could it be a disincentive?

> Take into account current low interest

rates for potential new finance: could a

new deal result in lower payments?

> don’T...

> Allow mileages to approach 100,000, at

which point residual values slide.

> Overlook the fact that most manufacturer

warranties expire after three years when

cars become eligible for an annual MOT.

> Underestimate the cost of replacement

vehicles if additional maintenance

or repair is required on an extended

operating cycle.

> Ignore the pace of automotive

technological development: today’s new

cars will be cleaner and more economical

than yesterday’s, with the potential to

offset the cost of a contract extension.

After three years, all cars

become eligible for the annual

MOT test, adding potential for

extra expense, downtime and

administration

fRee moT eveRy yeaR

As an Audi owner you can now benefit

from having your MOT tests carried out

for free every year*. All you need to do is

service your Audi with us when it is due,

taking advantage of a full service for

£249 or an interim service for £99^.

*Offer covers the cost of the MOT test charge for privately owned Audi vehicles with an Audi approved service history. Free MOTs continue for the duration the vehicle continues to be serviced with an Approved Audi Centre. £49.99 MOT test with free MOT Protection where vehicles have no service history and no service due with MOT; eligible for free MOT when a service is carried out at an Audi Centre. Vehicles aged over 24 months. Cannot be redeemed for cash. Re-tests will be chargeable. Excludes Northern Ireland and Channel Isles. Can be withdrawn at any time. Contact your local Audi Centre to find out more. ^ Prices applicable to A2, A3, A4, A6 and TT, up to and including 2.0 litres. Prices subject to change without notice.

Progress magazine / 15

saving money //

“NEW CARS WIll INVARIABlY BE MORE EFFICIENT ThAN OlDER ONES IN ThE AMOUNT OF FUEl ThEY USE, ThE CO2 EMISSIONS ThEY PRODUCE AND ThE BIK AND NIC lIABIlITIES ThEY INCUR.”

S 992

KLA 314

REU 901

598 LXS

655 NAX

501 SEY

LJV 522

NGB 212

RSW 998

FCA 367

1

2

3

34

5

6

7

8

8

Progress magazine / 17

COMPETITION //SUB-160G/KM AUDI MODELS //

Win ticke ts to see Manchester United in actionManchester United is among the premier

football clubs in the world, and audi Progress

is giving you the chance to win tickets to see a

world-class match. simply by completing and

returning the coupon below, you will have the

chance of winning a fabulous chauffeur-driven

trip to see Manchester United in action at the

famous old trafford ground.

A1 1.2 TFSI 86Ps 118g/km1.4 TFSI 122Ps 126g/km1.6 TDI 105Ps 105g/km

A3 1.6 TDI Standard 105Ps 99g/km1.6 TDI 105Ps 109g/km1.4 TFSI 125Ps 132g/km2.0 TDI 140Ps 134g/km2.0 TDI 170Ps 139g/km2.0 TDI quattro 170Ps 148g/km1.8 TFSI 160Ps 155g/km

A3 Cabriolet 1.6 TDI 105Ps 114g/km2.0 TDI 140Ps 119g/km1.2 TFSI 105Ps 132g/km1.8 TFSI 160Ps 159g/km

A3 Sportback 1.6 TDI 105Ps 109g/km2.0 TDI 140Ps 115g/km1.4 TFSI 125Ps 134g/km 2.0 TDI 170Ps 139g/km2.0 TDI quattro 170Ps 148g/km1.8 TFSI 160Ps 153g/km

A4 Saloon 2.0 TDIe 136Ps 120g/km2.0 TDI 120Ps 129g/km2.0 TDI 143Ps 134g/km2.0 TDI 170Ps 134g/km2.0 TDI quattro 170Ps 149g/km2.0 TFSI 211Ps 149g/km

A4 Avant 2.0 TDI 120Ps 134g/km2.0 TDI 143Ps 139g/km2.0 TDI 170Ps 144g/km2.0 TFSI 211Ps 154g/km2.0 TDI quattro 170Ps 154g/km

A5 Coupé 2.0 TDI 170Ps 134g/km2.0 TDI quattro 170Ps 149g/km2.0 TFSI 180Ps 149g/km2.0 TFSI 211Ps 149g/km

A5 Sportback 2.0 TDI 170Ps 137g/km2.0 TDI multitronic 143Ps 152g/km2.0 TDI quattro 170Ps 152g/km2.0 TFSI 180Ps 152g/km2.0 TFSI 211Ps 152g/km

A5 Cabriolet 2.0 TDI 170Ps 148g/km2.0 TFSI 211Ps 156g/km

A6 Saloon 2.0 TDIe 136Ps 139g/km2.0 TDI 170Ps 149g/km

A6 Avant 2.0 TDIe 136Ps 139g/km2.0 TDI 170Ps 152g/km

Audi TT Coupé 2.0 TDI quattro 170Ps 139g/km

Audi TT Roadster 2.0 TDI quattro 170Ps 144g/km1.8 TFSI 160Ps 159g/km

AUDI FLEET SALES is committed to providing

the best service, advice and support for your

fleet operation. to ensure your requirements

are managed to the very high standards

you have come to expect from audi, our

dedicated Fleet sales team is here to help.

the map below shows the audi Fleet sales

structure and the areas covered by our highly

experienced and professional fleet sales

managers. the contact telephone numbers

for your personal Fleet sales Manager are

detailed overleaf.

if you have any questions or enquiries

relating to audi Fleet sales, please don’t

hesitate to call your Fleet sales Manager who

will do everything possible to help.

iain carMichaeL

head oF FLeet saLes

aUdi Uk

● AREA 8 craig Larson ● AREA 7 Matthew hill ● AREA 6 sam ragheb ● AREA 5 claire tracey ● AREA 4 Paul o’Brien● AREA 3 kay Fenwick● AREA 2 alison davis● AREA 1 simon Lewis

all models quoted are equipped with manual transmission unless otherwise stated. Please consult your local audi centre for full details of emissions levels for models with automatic transmission.

F o r F U r t h e r d e t a i L s o n

a n y M o d e L i n t h e a U d i

r a n g e , P L e a s e c a L L

0 8 7 0 2 4 1 5 6 6 3 , o r v i s i t

a U d i F L e e t s a L e s . c o . U k

t h e r e a r e n e a r l y 1 8 0 a u d i m o d e l s w i t h c o 2 e m i s s i o n s o f 1 6 0 g / k m o r l e s s – m o r e t h a n a n y o t h e r p r e s t i g e m a n u f a c t u r e r – a n d t h a t e x c l u d e s m o d e l s w i t h a u t o m a t i c t r a n s m i s s i o n . s o s e l e c t i n g y o u r f l e e t t o b e n e f i t f r o m t h e 2 0 % c a p i t a l a l l o w a n c e w r i t e - d o w n i n 2 0 1 0 / 1 1 s h o u l d b e e a s y

greener Machines the aUdi nationaL FLee t saLes te aM

all completed coupons will be entered into our free draw to win

a pair of tickets to watch Manchester United in a home match at

old trafford during the 2010/2011 season. the closing date for

entries is 25 June, 2010. For terms and conditions see below.

name.......................................................................................

Job title.....................................................................................

company name..........................................................................

company address.......................................................................

.................................................................................................

............................................ Postcode.......................................

telephone no.............................................................................

email........................................................................................

nature of business......................................................................

Who is responsible for fleet purchasing decisions?

.................................................................................................

to register for a test drive, please state which model you are

interested in driving....................................................................

Please send me a brochure (state model)................................................................................................in what format would you prefer to receive future issues of Progress? in printed form or as a digital e-zine via email

Data Protection Act 1998: We, audi (Uk), our audi centres, authorised repairers and other group companies, will hold your information. Wherever you request further information about our products or ask for a test drive, we will use your information for that purpose. in addition, we would like to keep you up to date on any products and services that may be of interest to you. We or they may contact you by mail, telephone, e-mail or other electronic messaging service. if you would like to be contacted in future by e-mail or sMs, please tick if you do not wish to be contacted by mail or telephone, please tick this box Please note that we send brochures to UK addresses only, and BFPO numbers cannot be fulfilled.you have the right to ask for a copy of the information held by us in our records in return for payment of a small fee. you also have the right to require us to correct any inaccuracies in your information. audi (Uk) is a trading name of volkswagen group United kingdom Limited. By submitting this form you expressly consent that the Manchester United (MU) group (being all companies with the MU name) and the other MU commercial partners (as both may change over time) may share and use your personal information (a) to provide market products and services you request, (b) for consumer profiling and market research, and (c) unless you tick the boxes below, to contact you by post, phone or electronically (including email, text and digital tv) about MU-related products, services, offers and events. if you do not wish to receive details of products, services, offers and events from MU group MU commercial Partners, please tick the relevant box.Prize draw terms and conditions: the prize is a chauffeur-driven trip and two tickets to a Manchester United football match to be confirmed. entries must be made on the official entry form (above). the winner will be drawn at random from all entries received and will be notified by telephone shortly after the closing date, 25 June, 2010. the name of the winner will be made available on receipt of a stamped self-addressed envelope received by the promoter, volkswagen group United kingdom Ltd, before 31 July, 2010. the judges’ decision is final. the prize is non-transferable. one entry per person. there is no cash alternative. audi Uk reserves its right to substitute any prize with a prize of equivalent or higher value in the event of circumstances outside its control.

Audi Fleet Sales

Audi UK

Yeomans Drive

Blakelands

Milton Keynes

MK14 5AN

BUSiNeSS replY Service

licence no. NAT14114

The Audi National Fleet Sales TeamAudi Fleet SalesIain CarmichaelHead of Fleet Sales07710 173524

Kim FolcarelliAdministrator01908 601663

Nathan Dennis Fleet Sales Marketing Manager07889 124808

Audi National Fleet Sales TeamRoger Grainger National Fleet Sales Manager07711 036028

Mark Hamilton Key Account Manager07917 397077

● AReA 8: Craig LarsonFleet Sales Manager 07817 511332

● AReA 7: Matthew HillFleet Sales Manager 07875 736524

● AReA 6: Sam RaghebFleet Sales Manager 07917 397074

● AReA 5: Claire TraceyFleet Sales Manager 07983 596797

● AReA 4: Paul O’BrienFleet Sales Manager07989 241112

● AReA 3: Kay FenwickFleet Sales Manager07958 497675

● AReA 2: Alison DavisFleet Sales Manager 07703 206021

● AReA 1: Simon LewisFleet Sales Manager07947 988991

Contract Hire and LeasingWarren RichardsNational Contract Hire and Leasing Manager 07764 660641

Nick MitchellService and Technical Manager 07703 404271

Keith AndersonContract Hire and Leasing Manager (North)07808 730921

Henry WilliamsContract Hire and Leasing Manager (South)07908 121897

Joanna KnottContract Hire and Leasing Manager (Midlands)07739 592222

Fleet Sales SupportGina BlaauwFleet Sales Administration Manager0870 241 566301908 601167

Christiane BaarsFleet Sales Development Co-ordinator01908 601136

Gemma WattsSupport Co-ordinator 01908 601915

Julie KennedyFleet Sales Executive01908 601174

Sunita SudraContract Hire and Leasing Sales Co-ordinator01908 601034

Dawn BassantContract Hire and Leasing Sales Co-ordinator01908 548743