Daniel Weissland, President and CEO of Audi of America, discusses the brand's transformation amidst a rapidly changing automotive landscape. He highlights Audi's strategic partnership with Major League Soccer, emphasizing how it connects the brand with a diverse, younger audience. Weissland shares insights on Audi's commitment to sustainability, electric vehicles, and the importance of cultural relevance. He reflects on his global career journey and the evolving definition of luxury in the automotive space, while also addressing the challenges and opportunities presented by the upcoming FIFA World Cup and Formula One entry.
"...by one simple idea. In German, it's Worsprung der Technik. Progress through technology. And that company is Audi."
Worsprung der Technik is Audi's motto, which means they focus on improving and advancing technology in their cars.
Worsprung der Technik is a German phrase meaning 'Progress through technology,' which is Audi's slogan. It reflects the brand's commitment to innovation and technological advancement in the automotive industry.
"...ly experience driven? How does a brand known for Quattro, Le Mans, and precision engineering also become a..."
The Audi Quattro is a special system that helps all four wheels of a car get power, making it better at handling and driving in tough conditions. It was a big deal in racing and helped Audi become famous for making fast and reliable cars.
The Audi Quattro is a revolutionary all-wheel-drive system introduced in the early 1980s, which transformed the performance of Audi vehicles, especially in motorsports. Its success in rally racing helped solidify Audi's reputation for engineering excellence and performance.
"How does a brand known for Quattro, Le Mans, and precision engineering also become a brand of sustainability, software, and cultural relevance?"
Le Mans is a famous car race that lasts for 24 hours. Audi has participated in this race and has won many times, which shows how good their cars are at high performance.
Le Mans refers to the 24 Hours of Le Mans, an endurance racing event held annually in France. Audi has a successful history in this race, showcasing its engineering prowess and commitment to performance.
"...the whole city, into four rings, basically, and make sure that everybody who is a soccer fan is somehow also touched with the four rings..."
The 'four rings' is the logo of Audi, representing the four companies that came together to create Audi. It's a key part of their brand and is often used in their advertising.
The 'four rings' refers to Audi's logo, which symbolizes the four founding companies of Auto Union, the predecessor to Audi. This logo is a significant part of Audi's brand identity and marketing strategy.
"...For example, Formula One, we're going to enter Formula One next year. You know, we are the newbie..."
Formula One is a top-level car racing series where the fastest cars compete in races around the world. It's very popular and known for its exciting races and advanced technology.
Formula One is a premier international auto racing sport, featuring high-speed cars that compete in a series of races known as Grands Prix. It is known for its advanced technology, high performance, and global fanbase.
"...it fits well to our claim Forsprung durch Technik progress through technology..."
'Forsprung durch Technik' means 'Advancement through Technology' in German. It's a slogan used by Audi to highlight their focus on using technology to improve their cars.
'Forsprung durch Technik' is a German phrase meaning 'Advancement through Technology,' often used by Audi to emphasize their commitment to innovation and engineering excellence in their vehicles.
"...or aluminum space frame. Audi was the first..."
An aluminum space frame is a way to build a car that makes it lighter and stronger. Audi was one of the first to use this kind of design in their cars.
An aluminum space frame is a lightweight structural design used in vehicles to enhance performance and efficiency. Audi was one of the first manufacturers to implement this technology, which helps reduce weight while maintaining strength.
"It's again, a fast growing sport. I think the Netflix series a few years ago made it possible..."
Motorsport is a term for sports that involve racing cars and other vehicles. It's becoming more popular, especially among younger people.
Motorsport refers to competitive events involving motorized vehicles, including racing, rallying, and other forms of vehicle competition. It has gained popularity in recent years, attracting diverse audiences.
"...when I remember Michael Schumacher was driving Formula One, the famous German one..."
Michael Schumacher is a famous race car driver from Germany who is known for winning many championships in Formula One. He is considered one of the best drivers in the history of the sport.
Michael Schumacher is a retired German racing driver who is widely regarded as one of the greatest Formula One drivers of all time. He won seven World Championships and holds numerous records in the sport.
"So you will do what Cadillac is going to do, you will do what some others are doing..."
Cadillac is a well-known brand that makes luxury cars in the United States. They are famous for their stylish designs and high-quality vehicles.
Cadillac is a luxury vehicle division of the American automobile manufacturer General Motors. It is known for its high-end cars and has a long history in the automotive industry, often associated with luxury and performance.
"...Audi through its Q8 e-tron, its Q4 e-tron have clearly demonstrated an early leadership role in EVs."
The Audi Q8 e-tron is a fully electric SUV made by Audi, known for its modern design and advanced technology.
The Audi Q8 e-tron is an all-electric SUV that represents Audi's commitment to electrification and showcases advanced technology and performance features.
"again the pendulum has now swung another way. You mentioned the word hybrids. Audi through its Q8 e-tron, its Q4 e-tron have clearly demonstrated an early leadership role in EVs. But what comes next now in the electrification chapter for you? I think for us it's key that we keep flexibility"
The Audi e-tron is an electric car that doesn't use gasoline. It's designed to be comfortable and high-tech, showing that Audi is serious about making eco-friendly vehicles.
The Audi e-tron is a fully electric SUV that represents Audi's commitment to electric mobility. It showcases advanced technology, luxurious features, and a strong performance, marking Audi's significant entry into the electric vehicle market.
"...Audi through its Q8 e-tron, its Q4 e-tron have clearly demonstrated an early leadership role in EVs."
The Audi Q4 e-tron is a smaller electric SUV from Audi, designed for everyday use while being environmentally friendly.
The Audi Q4 e-tron is a compact electric SUV that offers a blend of practicality and performance, catering to the growing demand for electric vehicles.
"...what comes next now in the electrification chapter for you? I think for us it's key that we keep flexibility..."
Electrification means using electricity instead of gas or diesel to power vehicles, which helps reduce pollution and reliance on fossil fuels.
Electrification refers to the process of replacing technologies that use fossil fuels with those that use electricity, particularly in the automotive industry where it involves the development of electric vehicles (EVs).
"...let it be because of certain incentive schemes like IRA are not there anymore."
The IRA is a law that helps people buy electric cars by giving them tax breaks and other financial help.
The IRA refers to the Inflation Reduction Act, which includes provisions for tax incentives and other financial support aimed at promoting electric vehicle adoption and renewable energy.
"Let it be because of the pricing. EVs are still more expensive in combustion engine vehicles, but we still believe our future is electric on the long term."
EVs stand for electric vehicles, which are cars that run on electricity instead of gasoline. They are considered better for the environment because they produce fewer emissions.
EVs, or electric vehicles, are automobiles that are powered entirely or partially by electricity, as opposed to traditional combustion engine vehicles that rely on gasoline or diesel. The transition to EVs is seen as a key part of reducing carbon emissions and promoting sustainable transportation.
"At the same time, having EV offer in all the major segments and maybe have something in between plug-in hybrids, hybrids, which is kind of a bridging technology for most consumers..."
Plug-in hybrids are cars that can use both electricity and gasoline. You can charge them like an electric car, but they also have a regular engine for longer trips.
Plug-in hybrids are vehicles that combine a traditional internal combustion engine with an electric motor and a rechargeable battery. They can be charged from an external power source and can operate on electric power alone for a certain distance before switching to gasoline.
"...some customers want an RSQ8, like combustion engine vehicle with lots of horsepower and be fast as possible..."
The Audi RS Q8 is a fast and luxurious SUV that has a strong engine, making it powerful and fun to drive. It's designed for people who want both comfort and performance in a vehicle.
The Audi RS Q8 is a high-performance luxury SUV that combines the practicality of an SUV with the power of a sports car, featuring a powerful combustion engine and advanced technology.
"...with lots of horsepower and be fast as possible. Some other customers maybe want an electric vehicle..."
Horsepower is a way to measure how strong an engine is. More horsepower usually means the car can go faster and accelerate better.
Horsepower is a unit of measurement for power, commonly used to describe the power output of engines. The higher the horsepower, the more powerful the vehicle is, which typically translates to better acceleration and speed.
"...luxury involves things such as connectivity or in-car software. And Audi has been at the forefront of so much of that..."
In-car software is the technology inside a car that helps with things like navigation and entertainment. It makes driving easier and more enjoyable by connecting to your phone and providing useful information.
In-car software refers to the technology and applications integrated into a vehicle that enhance the driving experience, such as navigation, entertainment, and connectivity features. It plays a crucial role in modern vehicles, especially luxury ones, by providing convenience and advanced functionalities.
"...connects you with your car, connects you with your Audi dealer, connects you with your personalization you have..."
The My Audi app is an app for Audi car owners that helps them connect their phone to their car and manage features easily.
The My Audi app is a mobile application designed to enhance the ownership experience by connecting Audi owners to their vehicles, dealers, and personalized features.
"I would even say cars of the future are more software than hardware..."
More and more cars are using computer software to control how they work, which helps with things like safety and performance.
The increasing reliance on software in vehicles refers to the integration of technology that controls various functions, enhancing performance, safety, and user experience.
"...as I mentioned earlier, the Concept C, you know, like you mentioned the TT, I think it's another unique design concept. And we will see those, the design language of the Concept C"
Concept C is a prototype car that shows what a future model might look like. It's not a car you can buy yet, but it helps designers test new ideas and features.
The Concept C refers to a design study or prototype vehicle that showcases future design directions and technologies from a manufacturer. It's often used to gauge consumer interest and explore innovative features before they are implemented in production models.
"...If we talk about a Q7, it's a big car. The need for a Q7 is much higher or the demand in the US."
The Audi Q7 is a large, luxury SUV that offers a lot of space and comfort. It's great for families and comes with many high-end features.
The Audi Q7 is a full-size luxury SUV known for its spacious interior, advanced technology, and strong performance. It is designed to cater to families and individuals looking for a premium driving experience.
"...the influence of the American market is bigger. And especially with this high volume, the impact is even bigger on the big cars..."
The American market affects how cars are designed and sold. In the U.S., people tend to prefer bigger cars, while in places like Europe, smaller cars are more common because of narrow roads and limited parking.
The American market has a significant influence on automotive trends and vehicle design, particularly favoring larger vehicles compared to European markets, which often prioritize compactness due to space constraints.
"... And I think that has shaped Audi over more than 100 years and will shape Audi going forward. And that..."
The Audi 100 is an older luxury car that was made for many years. It helped Audi become known for making high-quality vehicles and is important in the brand's history.
The Audi 100 was a mid-size luxury car produced from the 1960s to the 1990s, known for its innovative design and engineering. It played a crucial role in establishing Audi's reputation for quality and performance, and it helped pave the way for the brand's future models.
"I also would like to see a factory in America. So definitely a lot of things which are on top of my head..."
Building a factory in America means making cars closer to where they are sold. This can help the company sell more cars and respond faster to what customers want.
Establishing a factory in America can enhance a brand's presence in the market, reduce shipping costs, and allow for quicker response to consumer demands. It can also create jobs and strengthen the brand's commitment to the local market.
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The automobile is one of the most important inventions that revolutionize the modern world.
In America, the rich history of car culture runs deep.
This technology continues to shape the future of the industry.
Jason Stein is here to share the stories of people passionate about cars,
from industry leaders and innovators to car-obsessed celebrities.
Buckle up as Jason takes you inside the boardroom, onto the track,
and around the bend on Cars and Culture on SiriusXM Business Radio.
Welcome in to episode 235 of Cars and Culture with Jason Stein here on SiriusXM Business
Channel 132. Great to have you along for the ride again this week.
Right now, the global auto industry is in the middle of one of the most profound transitions
in its history. Software, new competitors, new consumer expectations, and new definitions of
what a premium brand even is. And at the center of that transformation sits a company that has
always defined itself by one simple idea. In German, it's Worsprung der Technik. Progress
through technology. And that company is Audi. But what's interesting right now is that Audi
isn't just redefining itself through technology. It's also redefining how it connects with people
and culture. One of the clearest examples of that is Audi's growing relationship with
Major League Soccer. As soccer explodes in popularity in the United States,
with a younger, more diverse, more global fan base, Audi has chosen to lean into that moment,
not just as a sponsor, but as a participant in a culture that values community, performance,
global perspective, and emotion. That choice says a lot about how Audi sees its future.
And today, the question isn't whether Audi will change, it's how. How does a company that's more
than 100 years old, with a brand built on engineering, design, and performance, reinvent
itself for a world that's digital, connected, electric, and increasingly experience driven?
How does a brand known for Quattro, Le Mans, and precision engineering also become a brand of
sustainability, software, and cultural relevance? And how do you do that? Not in theory, but in
the real world of US consumers, dealers, regulators, and shifting market realities.
To help us explain that today, I'm joined by someone who sits right at that intersection of
legacy and reinvention, Daniel Weisland, president and CEO of Audi of America.
Daniel brings a rare combination to this conversation. He spent his entire career in the
global automotive organizations across Europe and North America, leading through periods of
enormous change. He understands the brand deeply, he understands the technology, and perhaps most
importantly, he understands the human side of leadership, what it takes to move an organization,
a dealer network, and a customer base forward. So buckle up, because the next chapter of the
auto industry is being written right now, and Audi is very much part of that story.
This is Cars & Culture, and he's Daniel Weisland. My name is Daniel Weisland. I'm the head for Audi
in North America, and I'm glad to be here with Cars & Culture with Jason Stein. It's been a long
time since I have been with him, and a lot has changed since then. But it is so good to be back
with Daniel Weisland on this program, talking about so many interesting and exciting things.
Daniel, welcome to the program. It is wonderful to have you as a guest.
Yeah, thank you, Jason, and great to be part of your show today.
Yeah, thank you. Thank you. Last time I saw you, we were in Toronto, and you had a different hat
that you were wearing at the time, and we will talk a little bit about that. But the most important
thing for today is that you have a very important weekend coming up, and it is not only Lionel Messi
or Thomas Mueller. It is Miami. It is Vancouver. It is the Audi MLS Cup, which I think you have
to be so excited about the fact that you have these awesome performers in front of you and that
Audi is a part of all of it. Yeah, it's definitely an exciting part of soccer here in the US or
North America. And I mean, it's just like also proof that people like Leo Messi or Thomas Mueller
have chosen to play in MLS, and a lot of more stars coming to the MLS. We see a huge increase
also versus previous year, currently already up 30%, and obviously the big final on Saturday
in Miami. I'm definitely looking forward to be part of that and looking for a great game.
It's amazing. You referenced the increase in viewers. What a great time for Audi to be a
part of this. The broadcasts for this year's postseason are averaging nearly 750,000 viewers
per match, which is almost 25% year-over-year increase across all linear and streaming platforms.
There's a growing audience here. Isn't there, Daniel? Yeah, I mean soccer is the biggest sport
in the world. It's almost around about 4 billion fans globally. It's huge. And it's also the fastest
growing major sport here in the US. And that's why we continue our partnership with MLS. We always
have been part of the soccer world globally and for the last 10 years here in the US. And that's
why it's so exciting to bring different communities together, different cultures,
different people from different backgrounds. And again, it's great to be part of that and help the
soccer to bring it to the next level here in the US. Why soccer? Many luxury brands bet on
more traditional American sports. Why did Audi see soccer as the right cultural platform?
Yeah, first, it's part of our legacy to a certain extent because we have been partner with soccer
in Europe for a long, long time. We also see a lot bigger growth potential in soccer than
any of the other major sports. And we always felt it fits well to our brand. It's a young dynamic
crowd. As I said, different cultures, very diverse. And we see now that excitement also comes to the
US, especially if you go to Miami on Saturday, you will see it's not just the stadium. Everything
around the stadium will be packed. People will run around with the pink jersey with the number 10 on
the back. Yeah, or some of the blue one from Vancouver. It's going to be insane how many people
are going to be on streets and celebrating soccer. And that's something where we're obviously excited
about and going next to the World Cup, not going too far. We'll probably see that almost every day
here in America with, I would call it a Super Bowl event on a daily basis for more than six weeks in
America. And that's exciting, isn't it? It is. Yeah. And we'll talk a little bit about the impact
of the World Cup, but you hit on it exactly. It is, for most North American listeners to the
program. It is the equivalent of having a Super Bowl on a daily basis. I had the good fortune of
being in Germany when the World Cup was there. And it changes your whole perspective on what the
world looks like. That was 2006, I believe. And it just, the action packed scenario, the energy.
For you, the audience is younger. They're more diverse. They're probably more digitally native.
Is that right? Yeah, like I see it already with my kids. They're obviously more digital natives
than I am. And that's coming with a younger crowd, diverse crowd. We have a lot of different
backgrounds. Of course, a lot of Hispanics, African-Americans, a lot of Europeans, even Asians.
So it's, I would say, a melting pot of different fan bases coming together and having a party
on a daily basis now next year when the World Cup comes or now with the MLS Cup
is great. And that's, again, a reason why we are part of the soccer world. We believe in
soccer and we believe in the success of soccer going forward. How do you turn those viewers
into long-term Audi loyalists? You know, first, you create fans. And fans have kind of an
aspiration. And even so, some of our fans maybe not are at a stage yet where they can afford an
Audi. Their aspiration is one day to drive an Audi. And even if we look at the household income,
we see the majority of our fan base has more than $100,000 household income already. And as
we grow our fan base, we also potentially grow our customer base. And it's not just about selling
Audi. It's also being, you know, you need to have a fan base to have a strong brand. And that's
what we try to achieve with our soccer investments. And the fan experience, you just mentioned it a
moment ago, what you're doing inside MLS stadiums, what you're doing in the flow of the match day,
it feels uniquely Audi to some extent, doesn't it? Yeah, I mean, we wanted to turn, you know,
like I said, that we want to turn this whole stadium, not just the stadium, the whole city,
into four rings, basically, and make sure that everybody who is a soccer fan is somehow also
touched with the four rings, or at least create some awareness and education about what Audi
is all about. And we see a lot of excitement with the players also know that they like to drive our
cars. And so we see also with a lot of fans. So like, yeah, again, it's a big Audi party,
which is called MLS Cup on Saturday. There's a bit of a co-creation there, right? You mentioned
the players being involved, clubs, it's helped shape the partnership. I know that that's all
part of the storytelling component to soccer culture. And soccer culture means supporter groups,
it means rituals, it means community. And I'm guessing Audi's looking to tap into that emotion
authentically, because so many partnerships are perhaps not as authentic.
Yeah, exactly. As you mentioned, I mean, it needs to fit to the brand, it needs to be authentic.
There needs to be a fit in our values, what we believe. And if, you know, only if there's a fit,
we also invest in it. And as I said, soccer is something we had invested for a long time. We
see that the outcome of soccer, it's a perfect fit in our opinion, because it's about performance,
it's about bringing communities together. It's also about innovation on the pitch to a certain
extent. If you see how the soccer sport has evolved over the last 10 years now, I mean,
how the players of today play, whereas the players maybe 20, 30 years ago,
it has changed completely. And that's something where Audi is believing in. And that's why we are
so much invested into the soccer sport. Some might not know about the Audi Goals Drive Progress
Fund and also MLSnext. Can you tell me a little bit about that?
Yeah, also here, we tried to help young talents to come into the sport who have a talent, but
maybe can't afford really to go to the next level. So that's something which we helped with the
Progress Program. We also obviously tried to help the fan base or the base of the members of the
cars with mobility, basically giving them cars to drive. And so we try to be part of
their development, no matter if it's a young player, no matter if it's a club,
no matter if it's a league, we try to be part of this development going forward and see what we
can do, how we can contribute to bring it to the next level. And MLS Commissioner back in October,
Don Garber said that you're a true partner in building MLS, that you believe in performance,
innovation, creating meaningful impact in communities, which you just said, values that MLS
also shares. And I'm guessing that that's what led to this multi-year extension. And the agreement
is, of course, not only MLS's official automotive partner, but title sponsor of the playoffs,
presenting sponsor of the MLS Golden Boot, MLS Cup MVP, MLS Cup, you've got the whole thing covered.
Yeah, and a lot more ideas also on the table, but sometimes you also have to say no,
sometimes you have to test new things and then see if they work and sometimes maybe readjust.
So we are in constant dialogue with our partners, no matter if it's Don Garber and the MLS,
no matter if it's the individual clubs to see what we can do better, what can we contribute to
the sport of soccer, to the communities, to the clubs. And it is a constant dialogue and nobody
is perfect. And there are always things which are changing. And that's why we need to have
also some flexibility and the exchange with our partners to see what we can do better,
what we can do more and what works and what maybe sometimes does not work.
Yeah, some might not know the league is closing, it's closing its 30th season,
unbelievably. And then we talk about the major milestones, major international milestone,
the FIFA World Cup next year. I know you're not the lead sponsor of the World Cup in America,
however, you can piggyback on that success, correct?
Yes, look, as official partner of the MLS, as a long time sponsor of soccer in the world,
not just here in the US, especially also in Europe, a lot of clubs,
we somehow also indirectly involved. And we hope that the World Cup is going to be a huge success
story here in the US and in North America, also Canada, Mexico, for that sake, because it will
help us to bring this sport to the next level. Or it's a huge opportunity, let's put it this way.
And that's why we are so much interested in knowing that we are not an official sponsor of
the World Cup. But we know that again, like for six weeks, every day, there is kind of a Super Bowl
event, a huge party in different cities. And that makes it so exciting. And also sometimes,
if you look at facts and figures, people always ask me, why don't you go into American football?
And the Super Bowl had 127 million viewers last year. The World Cup final had 1.5 billion viewers.
And that just shows you the difference in multitude of what soccer can do. And we hope that the
World Cup next year here in the US will have a huge impact on the fan base, on the sport of
soccer, and definitely will help us to bring soccer to the next level. And that's why we're
interested in knowing that we're not a sponsor of the World Cup itself.
You have such a fascinating global background. I want to talk about that for a few minutes.
From Canada to Europe to the US now, how have those experiences shaped the way that you're
leading out of America? For me, I would say also, when people ask me what is home for you,
I say, you know, I'm a global citizen. And for me, it's like home is where I am. So right now,
I'm based in the US in Virginia. That's my home. That's where my family is, even though my older son
is still in Canada. He never came to the US because he wanted to finish school or his university
there. And that's what I always like, I'm home where I am. And I make myself feel home with a
social, you know, community I build myself. And therefore, yes, I have a German passport, but
other than that, I consider myself a global citizen. And with all the different experience
I had in different parts of the world, be it Middle East, be it Asia, be it Europe, be it
Canada, yes, it helps me to understand different cultures. It helps me to understand different
views on things. And ultimately, being part of a community to understand the big picture of the
world. And that's where I also probably put myself into my leadership to have different angles,
different opinions, different views, depending where you're from or what your interests are. And
I think that helps me in leading the company. Well, some people probably don't know. I mean,
you were an intern nearly 30 years ago in Auburn Hills, Michigan. I mean, this was the
stepping stone for you, right? You started at Volkswagen Group South Africa as an intern.
And then you went to Auburn Hills. I mean, you were American before you were American.
Yeah, it's actually a very interesting story. It was 1998, I remember. Well, in February,
I started as an intern in Auburn Hills, Detroit, Michigan at the time. I was
the one single intern in the product marketing department. And when I came back in 2019 as
a president for Audi of America, I said, this is my comeback story. So I started 98 as an intern,
and I came back 2019 as a president. And it's actually a very interesting story for interns,
for graduates, for people who are starting with the company. Because I think that, you know,
the Audi world has so many opportunities of Volkswagen Group, if you include other brands,
to develop yourself in different countries, in different positions. And yeah, look, of course,
you also need to be lucky at times being at the right time at the right location. So it's not
always everything. Nothing is for granted. But the possibilities are almost endless, I would say.
And it's a great proof concept to say, or proof that starting as an intern, you can become the
president of the company. Well, yeah, and you mentioned it earlier. I mean, you were in the
Middle East for a little while. You spent some time in Toronto, as I mentioned, the president
of Audi Canada, president and CEO of Volkswagen Group Canada. And I can't believe that it's been
six years now that you have been in Virginia, involved with Audi and leading Audi. There must
be a fascinating blink of an eye for you. I mean, I tell you, the time is flying by. I mean,
we are now sitting here, beginning of December, the year is almost over 25. Yeah. Would you believe
that? I mean, and again, if I look back, I still obviously are in close contact with my Canadian
friends, partners and, you know, dealers. And it's already more than six years ago. I still have
contacts to the people in the Middle East, which is like, I don't know, 15, 20 years ago.
So time is flying by. But, you know, it's also so exciting. It's so many things happening.
So many challenges, but which challenges I think you also grow. Sometimes, yeah, you have a lot
of challenges, which, which makes it stressful. But ultimately, I think it's also part of our
development and our growth. So yeah, time is, time is flying by quickly.
It has been said when we talk about Audi in general, and your CEO says that he has
big plans for the automaker to focus once again, he said, on being the challenger in the premium
segment, and that he wants Audi to set new standards rather than trying to match what rivals
are doing. How does that impact you? Yeah, obviously, we're part of the global strategy,
the global approach. And there are a lot of examples where Audi will be or is the challenger.
For example, Formula One, we're going to enter Formula One next year. You know, we are the newbie,
basically on the block. We developed a complete new engine, a new car, which just months ago,
we showed the, you know, we revealed the car, how it's looked like. And we're excited about
this opportunity. Because again, I think it fits well to our claim Forsprung durch
technology progress through technology. And the biggest proof point technology can have
is Formula One. Formula One is a Champions League of Motorsport. And here you can prove your
challenger mentality, your challenger spirit, and, you know, maybe go to a podium place, who knows?
But at least I think we feel we have some opportunities and we've got a challenge that
established Formula One brands next year, when the four rings stand in the block and try to raise
them. But also on the other side, we also just launched a new design concept with Concept C
a few months ago in Munich, a new design language, interior as well as exterior.
We got a lot of positive echo because it's different. It's completely different. It's not
something where what exists already in the market. And again, it's a proof, okay, we're going to
challenge things and try to lead the way to the next step. And it always has been part of,
I would say, the legacy of Audi. If you look back with Quattro, we were the first one bringing
Quattro or aluminum space frame. Audi was the first. So there are a lot of technologies where
Audi was a pioneer. And we try to bring this back and find new ways of being a pioneer. It's not
always that easy, because you have a lot more competitors in the market. And it's always more
difficult to find new technologies who are really unique in a way. But we try to be the challenger
brand we are known for. And you mentioned Formula One. So let's talk about that for a moment. We've
had, gosh, everybody from Stefano da Manicali on this program. Zach Brown was on this program
recently. They all talk about the same thing, which is something that I could not have imagined
a decade ago or even five years ago, which is just the momentum in this country around the sport.
And it is remarkable. You and I have probably been watching it with more interest than others
for a long time. But now everybody's kind of caught on. It has the attention of a
younger, more diverse audience. What an opening for Audi at this point in North America,
especially with Austin in Miami and Las Vegas and Montreal and on and on and on.
It must be, like soccer, a great opening for you.
Absolutely. Absolutely. A great, great opportunity for us, specifically here in the US.
It's again, a fast growing sport. I think the Netflix series a few years ago
made it possible, a huge fan base. Also, very interesting, a huge female fan base.
But I met a lot of people or the women and said, yeah, I'm full of Formula One. I said,
really? Yes, I watched the Netflix series and since I'm caught up in Formula One.
So every other weekend I sit in front of the TV with my husband or sometimes without my husband
and watch Formula One. And for me, that was very interesting. Wow. So actually, after I had some
conversations with some people, I watched Netflix series because I was a Formula One fan before that
when I remember Michael Schumacher was driving Formula One, the famous German one. That when
I got caught into Formula One, but now people here in America got caught into Formula One
because of the Netflix series. And we see the growth in sport. We see the evaluation of the teams.
We see the excitement. If you come to town, like as you mentioned, B Miami, Montreal,
be it Austin or be it Las Vegas, every city or every race has a unique character, I would say.
But it's not just the race itself. The whole week is Formula One. It's like there's every day,
there's another party somewhere else and people get together. They don't even have tickets,
but there's still part of this Formula One fever, I would say. And then not now being part of the
race itself, when the four rings on the starting grid and when the lights come from red to green
and be basically a race for success and race for the podium, race for victory, I think that
makes it even more exciting and more opportunities for us to engage fans, engage customers, engage
dealer partners and just, again, help to bring this sport also to the next level and help our
brand to shine also in the motor sport world of Formula One. So you will do what Cadillac is going
to do, you will do what some others are doing, which is leverage here in North America that
opportunity. Yeah, we're definitely going to leverage the opportunity with those races. We do
it the Audi way. So we definitely want to challenge it in a different way, not like other brands do
it. But yes, huge opportunity for us. Of course, it's also an investment we have to take, but we're
committed to do so because we see that the long term value of Formula One and again, like next
year with new concept of hybrids, cars like 50% electric, 50% combustion engine vehicle,
I think it's very exciting and it's biggest change ever in terms of technology the Formula
One has experienced. So also here on the one side, it's probably an advantage for newcomer like
Audi is because everybody else needs to adjust. But on the other side, it's also a huge challenge
for everybody because it's unknown. For the first time, we're going to race with different
technology with different cars. But again, very exciting to be part of that. After the break,
I'll continue my conversation with Daniel Weissland, President and CEO of Audi of America.
To see more cars and culture interviews, visit the Cars and Culture YouTube channel,
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and culture makers who are driving the industry forward. Serious XM? Business radio.
The automobile is one of the most important inventions that revolutionize the modern world.
In America, the rich history of car culture runs deep. Technology continues to shape the
future of the industry. Jason Stein is here to share the stories of people passionate about cars
from industry leaders and innovators to car obsessed celebrities. Buckle up as Jason takes you inside
the boardroom, onto the track and around the bend on Cars and Culture on Serious XM Business Radio.
Welcome back to Cars and Culture here on Serious XM. I'm your host Jason Stein.
Now the continuation of my conversation with Daniel Weissland,
President and CEO of Audi of America. To see more cars and culture interviews,
visit the Cars and Culture YouTube channel, subscribe, comment and check out hundreds
of conversations with the creators, collectors and culture makers who are driving the industry
forward. Let's talk a little bit about EVs. We've seen in North America,
again the pendulum has now swung another way. You mentioned the word hybrids. Audi through its Q8
e-tron, its Q4 e-tron have clearly demonstrated an early leadership role in EVs. But what comes
next now in the electrification chapter for you? I think for us it's key that we keep flexibility
and really follow what consumers want, our customers. And obviously we see the transformation
of electric vehicles probably a slowdown for the most part of the country. Let it be because of
infrastructure. Let it be because of certain incentive schemes like IRA are not there anymore.
Let it be because of the pricing. EVs are still more expensive in combustion engine vehicles,
but we still believe our future is electric on the long term. The question is just when
and how quickly it's going to happen. And it's probably going to happen quicker
at the tipping point in California than it probably will happen in Nebraska or somewhere else.
So and that's where again, like being here in the US, we need to have the flexibility
to have either combustion engine vehicles in all the different segments. At the same time,
having EV offer in all the major segments and maybe have something in between plug-in hybrids,
hybrids, which is kind of a bridging technology for most consumers, which maybe are not fully
ready to go fully electric, but also want to not go back or stick with a combustion engine vehicle.
So again, like we need to offer what our consumers, what the market demands and keep the flexibility
and that's something we have. As I mentioned earlier, we're going to launch different cars
in different segments with different drivetrains to exactly enable Audi to be there where the
customer is in their own journey. Luxury, Daniel, how has the definition of luxury changed
even just in the six years that you've been in the United States? How are US consumers
thinking of luxury these days? Yeah, I think luxury. I mean, everybody has his own definition
of luxury. We talked about time earlier, how quickly time is passing by. For me, luxury is time.
It's about time for yourself. It's about time for your family. It's about time for your hobbies.
It's about time making your business, stabilizing business. And that's for me the highest luxury
I can have. It's really time. But of course, for other people, it's maybe it's about money.
It's about status symbols. It's about health. There are so different elements of luxury and
I think everybody needs to define luxury for himself. And that's again, like if we talk about
Audi customers, we need to have the flexibility to enable, to give what Audi customers want.
And some customers want an RSQ8, like combustion engine vehicle with lots of horsepower
and be fast as possible. Some other customers maybe want an electric vehicle because they
want to be sustainable in a way. And that means luxury for them. Therefore, it's always difficult
to define luxury as a one definition. I think it's really individually by different people.
Everybody has his own kind of definition of luxury. And in some cases, luxury involves
things such as connectivity or in-car software. And Audi has been at the forefront of so much
of that. How does in-car software, connectivity, maybe even intelligence play in creating a better
experience, a better consumer experience? Would we see every customer or every consumer wants
to be connected almost 24-7? I mean, especially younger generation, if I look at my boys,
it's like that constantly on their phone. Sometimes I even get annoyed. We're having dinner
and they're having their phone next to them. And by eating and next to it, they're watching,
I don't know, Instagram or not sending emails. Emails is old-fashioned. So I'm an old-fashioned
guy in the family because I'm still sending email. And that's what customers also expect
being in an Audi. They want to be connected. And the car needs to be connected to their phone.
The phone is kind of the ecosystem of consumers these days. And then we call it the My Audi app.
The My Audi app connects you with your car, connects you with your Audi dealer, connects you
with your personalization you have and want to have what you know about Audi. And that's
important that we connect as many things as possible into this, call it My Audi app,
because this is the heart of Audi. And that's where our Audi customers live on a daily basis.
And it becomes more and more important as we go forward. And that's where a lot of development
goes into. I would even say cars of the future are more software than hardware. And we see it
already today to a certain extent, but we will see it even more coming forward as that software is
basically the key for our cars in the future. Design has always been such a key part of
Audi's past as well. And I remember the first TTs that I saw on the street as an example,
or even some, you know, an RS6 wagon, you know, I mean, things of that nature, right?
Audi design is bold yet understated and a brand signature. How do you influence Ingolstadt and
tell designers that there's an American market out there that wants that bold yet understated
design? And then how do they innovate while protecting the identity of Audi?
Yeah, it's a very, very good question. And it's a challenge at times, because, you know,
American consumers usually want to have big, biggest beautiful. And big cup holders is always
a big challenge we had with our engineers or designers in Ingolstadt. And usually the cup holders
are too small, because the Stanley Cup is too big. So it's like, you're not going to change the
Stanley Cup cups. So you have to change your cup holder. But also here, I think we are
making a lot of progress and trying to find the right way that the car fits the American needs
and requirements. But there's also a car which obviously works in Europe or in the Middle East
or in Asia. We're not developing cars only for America. We develop cars for the world.
And as I mentioned earlier, the Concept C, you know, like you mentioned the TT, I think it's
another unique design concept. And we will see those, the design language of the Concept C
come to serious cars in the next few years, interior as well as exterior. And I hope that
customers like it, at least the feedback we got from the press and customers from the concept
car is pretty amazing. And we continue to also evolve in our design language of our cars going
forward. Is it your role to make sure that Audi is in more of the conversations than maybe it has
been in the last few years? Yes, I mean, look, everybody understands the importance of the
American market globally. After China, yes, it's the biggest single market in the world. And if we
look in the Audi world, we see there are still lots of opportunities for the Audi brand here
in America to grow. And therefore, specifically on the, I would call it the bigger models,
the influence we have here at Audi of America in the high court is a lot bigger. If we talk about
a Q7, it's a big car. The need for a Q7 is much higher or the demand in the US. And it is, for
example, in Germany or in Italy, very small roads and you hardly find a parking lot in a parking
garage. And that's why, you know, depending on what model we're talking about, the influence of
the American market is bigger. And especially with this high volume, the impact is even bigger on
the big cars. American culture, I mean, this program is called cars and culture. We focus just
as much on the second part as we do on the first part. What is Audi's culture?
Look, Audi's culture, you know, like it's first, we have a very long history. And I think Audi's
always intention was to be the first one to be a challenger, to be pioneer, to bring new innovations,
which is part of our claim for technical progress through technology. And I think that
has shaped Audi over more than 100 years and will shape Audi going forward. And that's just
something we have to remind ourselves, you know, we want to, you know, sometimes have an answer
before the question is being asked, not to be a step ahead, challenge the status quo and be a
pioneer in many aspects of relation to our car business and mobility business.
Let's talk about some aspects of culture just in the final few minutes here
that have affected you. So you have led the company through supply chain challenges,
through electrification shifts, through changing customer expectations,
what leadership lessons, what cultural lessons have stood out for you, Daniel, over these last
few years? First and foremost, as a leader, you always have to lead the way, even in difficult
situations. And then I think an important is that you focus on the things you can influence.
There are certain things in life or in business, you can't really influence external factors.
And instead of like wasting time to debate why is this and rather focus on the things you can
really change and influence. And I think that's important. And even specifically important in
crisis situations, because you can, instead of like complaining about why the world and
everything is so bad, focus on the things you can change and influence and try to do the best.
And yes, certain things are outside of control and nothing is perfect. But I think the attitude
to really focus on the things you can change helps you to get through those crisis.
What have you learned from the American consumer now, having spent enough time here in North America?
What have you learned from that consumer that you take back with you to Ingolstadt?
What do you say about the North American consumer? So there is not one single American consumer.
It's a multitude. It's like probably one of the most diverse consumer base, I would say,
in the world. America has 50 different states. It's a melting pot of different cultures,
nationalities. You'll find probably every extreme in America, which you find in the rest of the
world. And that makes America so unique. Also, from a legal perspective, like every state has
certain rules and regulations. And again, like you have hot countries, you have cold countries or
cold states in America, you have high altitude, low altitude. America gives you everything you
can find also in rest of the world in one single country. And it makes it so unique, so complex,
so challenging, but also very exciting on the other side.
In terms of excitement on the other side, if we have this conversation in five or six years from
now, what will have excited you about what you've been able to do with Audi in North America?
Yeah, my biggest, what I want to do, ultimately, it's about I bring the Audi brand to the next
level, bring the Audi brand, the rings let it shine in the premium market. Again, we have lots
of opportunities. I think we have some ideas how we're going to bring Audi to the next level.
We talked about soccer, we talked about Formula One, we talked about new cars bringing to the
market. Ultimately, I also would like to see a factory in America. So definitely a lot of things
which are on top of my head and something I would be excited about if we talk about in five years
again. I know that nothing has been announced and your CEO said nothing has been decided yet,
but how could more production here help Audi? Look, I think also if you commit yourself to a
market, if you want to be more resilient in an ever-changing global economy, I think you also
need to think about what will help me to grow even further in America. Again, there's nothing
decided yet, but definitely something which is top of mind, something we're investigating and
discussing. That's why I also mentioned it here. That's why again, that would be something excited
to talk about if we meet again in five years. Hopefully, it doesn't take another five years,
but definitely something I would be excited about.
Yeah, we went through this whole conversation for 36 minutes and we didn't even mention the
tariff word. That's probably a pretty good thing, but I know that it probably weighs heavy on you
and I know that you have had to make a lot of adjustments. We've had other people on the program
talk about making adjustments at all times. Has it made for an interesting year for you, I can
imagine. Yeah, interesting, challenging. You name it. It's not just a tariff situation. It's
like the whole geopolitical tensions around the world. Since as a global player, it all has somehow
an impact on your supply chain and things you do in a market. Again, as I said earlier, you need to
focus on the things you can change and influence. I can't change the tariffs. I'm not negotiating
this administration about what tariffs are right or wrong, but I'm the one then basically try to
make the best for Audi in the US, what helps us, what helps our customers, our consumers,
and the business ultimately. Yes, it's definitely interesting. Yes, it's definitely challenging
in times where the tariffs have been imposed, where exchange rate is weakening and a lot of
external factors, which I can't really influence. We'll finish with soccer because that's what's
in front of you immediately here. What are the next big opportunities for Audi within the sport?
Women's soccer, e-sports, future club partnerships. I imagine you have a lot of things that you may
be considering. Yeah, there are a lot of ideas on the table, but also here, my credo is let's
focus on the things and do them right. You can't do too many things and then just be 50% in, so
rather do the things right. Therefore, we also need to manage priorities and see what we can do
and what we want to do. Soccer, we are fully invested. Now, Formula One comes next. I rather
now focus on Formula One together with soccer next year and then we'll see what's to come,
women's soccer or something else. I'm sure there are a lot of ideas my team has and we can come
up with, but for now it's soccer, continue the soccer and next year it's a Formula One on the
sports world. It doesn't hurt that you have a guy named Messi who's going to be on the field
on Saturday, does it? That kind of makes the Audi Cup even bigger, doesn't it?
Yeah, for sure. I mean, he's considered the best player of all times. He extended his
contract for another three years, so he will be part of the MLS, he will be part of the soccer
world and I'm sure he's going to attract more superstars to the MLS. You mentioned earlier,
Thomas Müller came, also Son from the Premier League came and I'm sure there are a lot of
more players coming in the next few years and definitely Messi helped to bring the MLS to
next level to a certain extent and definitely also helped into Miami to be now in the MLS Cup
and competing to win the MLS Cup on Saturday. I'll tell you, I will finish with a funny story
for you. I had the chance to see Coldplay this summer in Miami and the base player Guy Baerman
has been on this program as well and the loudest applause I have heard in many, many, many years
at an event was when they showed Messi on the screen during that Coldplay show.
If you want to know who the Mayor and the President of Miami is, it is Messi. So I'm sure
the crowd will be completely into it on Saturday when he also takes the field for the championship.
Yeah, I mean, the aura and the fan base Messi has is insane. I mean, the number one 10 Messi shirt
is the most sold shirt globally. And again, at the level he still plays, he's a top scorer in MLS.
Next year he's going to compete with Argentina to defend the World Cup title. So we'll see. I have
the utmost respect for Messi in what he did for this sport and he still continues to bring
performance on the pitch every day he plays. I wish you well with your big event on Saturday and
the championship of the MLS and congratulations on your partnership with them. Congratulations on
everything that you have done over the last six years. I look forward to the next six as well,
Daniel. Thank you, Jason. Great to have me on your show and I'm looking forward to see you again,
hopefully in person then next time. Yeah, that sounds good. Thank you, Daniel. Thank you, Jason.
A big thanks to my guests today on Cars and Culture, Daniel Weissland,
president and CEO of Audi of America. To see more Cars and Culture interviews,
visit the Cars and Culture YouTube channel, subscribe, comment and check out hundreds of
conversations and thousands of videos with creators, collectors and culture makers who
are driving the industry forward. That's episode 235. I'm your host, Jason Stein. We'll see you down the road.
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