Look Out BMW and Mercedes! Audi Has Shifted Into Overdrive

Audi's hungry-looking front grille is looming ever larger in the rearview mirrors of BMW and Mercedes. Audi's sporty new models not only are powering faster global sales growth than German rivals but are also rapidly narrowing the profit gap with Bimmers and Benzes, according to results released by the company on July 3.

If the trend continues, by 2010 Audi's operating profit is likely to exceed that of BMW, and two years after that it may well overtake BMW in revenues, says Adam Jonas, London-based auto analyst at Morgan Stanley (MS). "It's all driven by new models," says Jonas, who expects Audi's vehicle sales to grow at an annual clip of 10% over the next three years—roughly triple the rate of BMW.

The recent crop of Audis clearly is surpassing expectations. The company, a division of Volkswagen, has dazzled car buyers with upmarket sporty cars and cutting-edge design ever since the 1998 launch of the iconic TT roadster. But few counted on Audi ever catching or overtaking its larger German rivals. Fast-forward nearly a decade and Audi is successfully wielding the same growth strategy premium-market leader BMW deployed in 2000 to outsell Mercedes. Audi, Germany's No. 3 premium automaker, is on a tear to expand its lineup of high-performance cars such as the posh Q7 SUV and the A5 coupe, and it's employing head-turning design to steal customers from the competition.


Read Article

Will_ - 7/31/2007 11:43:22 AM

+5 Boost

You didn't choose an Audi over a BMW for its reliability did you?

lol.

EnnNorak - 8/1/2007 11:22:06 AM

+2 Boost

I drive a leased A6 Quattro and can attest to the fact that Audi makes totally reliable cars today compared what they produced back in the eighties when electrical problems ruled the day. The A6 is a much better value than the Mercedes E-Class but we have not yet seen the next generation E due for the 2009 or 210 model year. Right now about the only way Mercedes can get me to switch from Audi is to bring the Vision C220 Bluetec to North America and make LSD available for this RWD car.

S4cabriofoxone - 8/1/2007 5:59:55 PM

+2 Boost

bulldogz, in predicted reliability, Audi is at #11, with Lexus at #8 (out of 36). BMW is stuck at #27, with Mercedes-Benz all the way at the back. Those are just facts.

Hwany - 7/31/2007 11:51:38 AM

+6 Boost

I currently own 2005.5 B7 Audi A4 and loving it. Put on 35k miles and 0 problems so far even when I tuned it alittle bit.

I just don't like their customer service at the dealers. I know that it depends from another but I'm hearing more negatives about Audi delears than BMW's or MB's. They should really work on that.
My friend who was looking into buy his new luxury compact car was test driving each cars like new C300, IS250, 328i and A4. He told me that he had the worst experience at the Audi because they would just not treat him right.

If they don't change the way they do customer service, I'm sorry Audi, but I may choose BMW or MB for my next car.

Agent009 - 7/31/2007 12:01:43 PM

+5 Boost

Audi dealers in general do need to work on the customer service experience.

There are some leaders but some need to go sit in a Lexus service area to learn what it should be about.

EvilHomer might be the best qualified to comment on this though.

Hyundai - 7/31/2007 12:21:58 PM

+4 Boost

Agent009, I DO believe that you mean LEAST qualified to comment on this matter.

You would think that somebody who is a salesperson at an Audi dealership would back the service at the dealerships that they get their bread and butter from.

Your comments amaze me more-and-more everyday Agent009!

Where do you think a dealership gets their feedback from on how to improve? How dare it be the customer, huh?

I guess that is how you run your site though, by getting feedback from 001, and vice-versa! The customer is ALWAYS wrong! ;)

Agent009 - 7/31/2007 12:32:44 PM

+2 Boost

I have been on both sides of the fence and I am more qualified than you might believe in that area.

You could take a quick look at my stable past and present in the post last night on what do you own.
Needless to say you probably have no clue as to what I may have experience owning past and present.

IamEvilHomer - 8/1/2007 2:37:06 AM

+2 Boost

009 - i agree there are some bad audi dealers but audi is doing their best to upgrade dealers and dealer agreements.

Lexus has it right with service departments - Lexus dosen't have 40 year old dealer agreements also

if you shop at a single point Audi store with the hanger they are usualy great

Hyundai - don't be an idiot

Will_ - 7/31/2007 11:56:36 AM

-1 Boost

I am aware that Audi is "more reliable" than BMW. Previous comment was a spoof on German fanatics who give Hell to Japanese car fans who choose certain makes over other makes for their reilability? Is it clicking yet Caltrans?

S4cabriofoxone - 8/1/2007 6:02:48 PM

+2 Boost

Yes, exactly. I would be weary of driving a Mercedes-Benz. To me, the S-Class just says "asshole," and it's still one of my favorite cars. I just couldn't own one. I'd take an S8 instead. It doesn't make you look like a jackass, and it can blow the doors off of a Carrera.

Agent009 - 7/31/2007 12:33:54 PM

+6 Boost

Many people limit the amount of sources to what they want to see and discount other sources as irrelevant.

justacarfan - 7/31/2007 4:49:51 PM

+3 Boost

Bulldogz
Can you list nine recalls for the Frod Fusion. Recalls not TSBs

david999 - 7/31/2007 6:00:21 PM

0 Boost

Consumer Reports does not highly recommend any Audi models. That is reserved more for a brand like Lexus.

S4cabriofoxone - 8/1/2007 6:05:43 PM

+1 Boost

Pick up the latest CR and see for yourself, david. The last time I checked, the A3, A4 and S4 (which are counted as two cars) were all "highly recommended," and a couple others were just "recommended."

On another note, I had had my wife's car all figured out. The LS460L, of course. It's beautiful in person. But just this week she said she wanted a 335i convertible, because she sat in a friend's. Whatever.

JUGNU - 7/31/2007 12:39:14 PM

-2 Boost

I like Audi.If they just loose that big grille and few kilos (VISUALLY, measurably maybe they r close) in some of their models like A4,A6,Q7...etc it would be great.

JUGNU

IamEvilHomer - 8/1/2007 2:38:04 AM

+1 Boost

if you want a tin can go buy a japanese car

BMW4me4ever - 7/31/2007 2:10:52 PM

-2 Boost

explain the profit gap narrowing.. hello, mcfly? of course it will narrow more rapidly when you share with VW and porsche. It is much less expensive to share technology, engines & body parts with another manufacturer. Same thing goes with R & D. Also, apparently BMW & Mercedes will be just lying around waiting for Audi to pass them. I just dont see it happening, but who knows. Think I may have a better chance of seeing a cow fly over the moon.

IamEvilHomer - 8/1/2007 2:40:15 AM

+2 Boost

that is why MB and BMW is down

The bigest market for the 2 companies is the USA and profits are down
the dollar alone hurts

Audi is doing well because they are not droping their pants in the USA and they have a bigger market in Germany, China and the rest of Europe

david999 - 7/31/2007 5:58:40 PM

0 Boost

Sales growth fueled more with cheaper Audis selling in China and other parts of Asia, as well as Europe.

Rupert - 7/31/2007 6:26:45 PM

+2 Boost

BMW has already had the 1 series in Europe for a few years though - and it sells less than the 5 series. It's not a key model (especially not a 6 cylinder small coupe) for sales, and I don't think it will affect overall world sales that much.

johnct - 8/1/2007 12:56:34 AM

+1 Boost

I love my A4. I would have chosen a 328xi if BMW would upgrade the interior and ctop nickel and diming options.

MPowerDK - 8/1/2007 1:31:07 AM

+1 Boost

I only like the audi A6 avant, thats the only car that looks nice in audis lineup.

About reliability i own a BMW 3 this once since 2004 no problems at all, that car is my 3rd Bmw, only once during the years i had a problem, a flat battery... 8 yeart old and then it was dead. So absolutely no problems at all with an e30, e36 and e46. My parents owend a e21 i guess the first 3 series, no problem either.