Audi Sales Down 28.5% For December! But Still Sets Record for 2007

wow .. What are the figures and breakdown for december? Overall Audi had a pretty good year, but I am sure the fact that they had a disappointing December is not the kind of momentum one wants heading into 2008

Audi hasn't posted them which was the first clue I had that something was wrong. But they sold 11,897 vehicles in Dec of 2006 and 8502 in December 2007. so you can see it was down tremendously.

009 - That is a huge decrease for december of 2007. Which car was the culprit or culprits? I would never have guessed they would have been that far down in december, especially since the S5, TT were New Models.

Hard to tell Audi still hasn't posted the figures, but last year the Q7 was delivering high volumes so that would be a hard figure to keep up with. But I wager just a month of average lease deals and the economic downturn combined.

They need to be more aggressive on the lease deals in the US until they gain more momentum.

This is even more surprising considering that December equals bad weather for most of us in the US, and this is when their quattro has the strongest selling point.

I agree--December is usually their STRONGEST month of the year! And this is easily their worst decrease of the year. They've only had two or three months with negatives.

Surprised, to say the least, but I don't really care.

Actually the culprit's were the A6 and A8. With A8 production cut nearly 50% and A6 sales so slow it was almost impossible to make a gain. Also the A4 24 month lease deals in 06 Fueled those 06 numbers heavily. Dealers were running out of inventory then. But still over all a great year. Can't wait to see what the numbers look like with full runs of A & S5's and wehn the Q5 hits as well as the A4 2008 should look to be an even better year.

Congrats! Audi makes a great car! They REALLY need to work on their leases. My lease is up on my A8 in March. Monthly payments run $1050. (20,000 miles annually.) Thought about down sizing to an S5. Monthly payment $1060. Same money down. Equal payments for a car that is $20,000.00 cheaper. Come on. Going this afternoon to check out the competition.

Its a new car. They wont have any good lease specials on that one for a while. They havent even brought out the automatic yet.

iown1 -
I'm thinking of trading my S430 for a new A8 ($25K price differential - new A8's are selling off the lot for around $70K, new S550-4 are selling for about $95K). Any problems with your A8?

Is the A8 a fragile car, would the poor quality of the NYC roads beat it up? S430 held up really well to NYC roads.

You won't find a new A8 for $70K. The A8L is $75K base... but most have quite a few options.

"Is the A8 a fragile car, would the poor quality of the NYC roads beat it up?"

Are you kidding?

Live in NYC part of the time. I have never in the lifetime of my lease had one problem with my A8 other than the electric trunk closer which was fixed and never happened again. It has been an incredible car and one I would highly recommend. Can you please tell me where there are A8's for $70,000.00 Upstate there getting close to sticker at around 85. And it's not just the fact that the S5 is a new car. The 2008 A8 is 13-1400 a month. At least that is what my sales person quoted me.

A8's seem to be discounted if you buy them (rather than lease them). The lease is terrible b/c these depreciate like rocks in addition to rates not being that good on auto financing right now due to the sub-prime crisis.

I received a quote from a NY-area dealer two weeks ago for a new, sensibly optioned, 'L' in that range. This is also not a car with B&O stereo, full 'exclusive' leather but one with premium and a couple of cheap options.

Two months ago, in the NY Times dealers were advertising $10,000 off sticker in a few places for the leftover 07's and the promo mentality seems to have carried over to the 08's

Just like everyone else, the 2007 model A8L had factory to dealer cash which helped them lower the price about $10K. The 2007 S550 MB was selling at a discount of about $12K in my area. Obvously, a lease on a 2007 model is not going to be great and the 2008 model just came out at the beginning of December in small numbers and remains a hard car to find if your picky about colors and options. 2008 model A8L, S550 and 750Li all lease within about $100 of one another if options are similar. The values of these cars do not "tank" as many would like to claim. If anything, they remain strong as a percentage of MSRP. Resale of preowned A8L on the CPO side is very good with examplesl only lasting a few days on dealer lots for 2006 or newer units. The only slow selling year is 2004 which didn't come with many of the features introduced in 2006, mainly Bluetooth. I'm sorry, but your arguments have no basis in fact.

iown1 - when a car is hot on the market and in demand the manufacturer isnt as interested in offering a killer lease program. On the other hand when a vehicle doest sell as well, like the A8, the manufacturer enhances residuals and factors to help move a car. The S5 is still in demand right now, thus it will take about 5 to 6 months before Audi offers a better lease program.

Totally understand that. But you can understand why I wouldn't be willing to pay the same for an S5 as an A8. Someone willing to pay the same to finance $60,000 vs.$80,000 either has so much money they don't care or they're a fool or both. No matter how popular a car is, from an economic standpoint it makes zero sense.

the S5 and A8 are in totally different classes. Depends on what you are looking for. Sporty v/s luxury.

Shouldn't matter. It's dollar for dollar. It would be like having the same mortgage with a 600,000 home as an 800,000 home. Except most homes don't depriciate the day after you buy them. I realise there is a premium for having the latest car but honestly a 335xi is every bit as capable and it's leasing at about 750 with the same money down. S5 should be around 825-875 IMO.

I'm sorry but the lease on an A8L is no longer $1000/mo either. Your comparing what you are paying now with what your $1000/mo buys you today. A8L leases are closer to $1500-1600 these days. S550 are $1600-$1700 these days. An S5 is using standard rates and residuals meaning, they are not on sale yet. Audi is having a tough time keeping up with demand for the car in the US with most dealers sold out through April already. Why would you put them on sale with an incentivised lease already? Why don't you just buy one and take advantage of the strong resale value the car will have down the road?

I suspect this is due to the new Mercedes C Class and good lease deals on the BMW 3 series. Why buy an Audi when Mercedes and BMW have better dealers, better vehicles and better leases. Plus BMW's zero-cost maintenance deal is sweet.

yea, I suspect the drop-off in sales is due to the announcement of new A4 for end of 08.

Bravo Audi.
All they have to do now is release the new A4 and (please be 3.0L Twin turbo 6) S4 properly and they'll have an even better 2008.

Yes, the new S4 will have the twin-turbo V6--it's practically official.

The word is that there will be no 2.0T here, only the 3.2 as the base engine, like the A5/S5. I find this strange, but maybe they're making room for a slightly slower, more efficient diesel model to slot in below?

I can't see them not offering a turbo-4cyl gas engine. I worked at one of those Miami dealers, we sold tons of A4s and I'd say 90-95% 2.0T

They HAVE to sell a 2.0T, if they don't then i'm goin down to audi and beaten the crap out of whoever made the decision.(hypothetically)

Thay have a 2.0L turbo - in an A3. I think Audi is pushing the A4 upwards by not offering a gas I4 in their baby sedan like BMW & MB. A diesel I4 would be pretty cool though.

Audi UK has build your own A4 up and running, check it out.

Almost every month, Audi sites these big increases in certain markets, like NY and LA. With big increases in big markets like these, especially NY where I think Audi has always done relatively well, and with overall sales only up sightly, wouldn't this mean that sales are down significantly in many other markets?

As good as the A6 is, they just can't move this model in big numbers unless the lease is supported. The E-Class and 5-Series are still the default models in this segment and unless something offers a clear advantage over these (it's hard to overcome the prestige factor) such as price or service (i.e., Lexus/Infiniti), they'll never move a lot of these. If they hadn't added the Q7, their sales would be a lot worse.

before you chumps accuse me of flaming, I'm an Audi fan and have had several (and have one now).

congrats Audi! I adore the a6 and the nxt A4.

Last December had sales above the monthly average, this December is about monthly average, thus the difference.

Audi should go over 100,000 next year.

AUDI OF AMERICA: DECEMBER 2007 YEAR-END SALES

AUDI US SNAPSHOT -----YEAR TO DATE-----
Dec-07 Dec-06
Dec-07 Dec-06 Yr/Yr % YTD YTD Yr/Yr %
actual actual change actual actual change
A3 486 580 -16.2% 6,353 8,040 -21.0%
A4/S4/RS 4 3,832 6,747 -43.2% 37,894 42,694 -11.2%
A4/S4 Cabriolet 366 542 -32.5% 7,517 7,168 4.9%
S5 136 0 - 625 0 -
A6/S6 1,204 1,253 -3.9% 12,001 16,219 -26.0%
A8/S8 351 432 -18.8% 3,826 5,038 -24.1%
TT 484 22 2100.0% 4,355 954 356.5%
R8 70 0 - 240 0 -
Audi Q7 1,575 2,321 -32.1% 20,695 10,003 106.9%
Total 8,504 11,897 -28.5% 93,506 90,116 3.8%

I don't care how many cars they sell as long as they don't pull out of the market. I want my car, and then I'm happy.

My analysis is that the bread and butter of their lineup, A4 and A6, are the ones that are struggling the most. The new A4 is coming to save that, but the A6 doesn't have any major selling points. Yes, the interior is gorgeous, but many buyers just won't perceive a difference between its interior and, say, an E-Class. It's handsome, but I personally think the BMW 5 looks better. It's sporty, but not sporty enough, and they still don't have the ride sorted out. The 3.2 is underwhelming. It doesn't offer any significant value advantage, especially considering the lease "deals." The S6 is the only one in this lineup that I'd buy.

The US is the only market where the A6 struggles. It sells very strong in the rest of the world. I agree, it seems they have abandonded any efforts to market the car here properly. I feel that is probably due to a "we really don't need the US for this car" mentality. They're probably right. Why spend the millions to make it all happen when they sell every one they make any way? Just not here in the US.

I know, and agree... the A6 is the best-selling executive sedan in the world.

But wouldn't it be great if it could be selling that much better? I'm losing patience with their American mentality--BMW seems perfect at balancing their brand mystique with high sales, high resale and profitable product. If Audi can do that in the rest of the world, why not here?

They want to do it, they just don't want to spend the money! I've been around these guys long enough to know, they have a budget to work with every year that increases only slightly. They are very careful with how they spend it. Grand gestures such as the Superbowl are big news but leave very little else for "other" marketing efforts. Incentivised leases are just another example of what suffers when they go over budget in other areas. Getting ad dollars for the US is like pulling teeth right now so they try to do things that make the largest impression possible "for the money". The exchange rate with the US dollar certainly doesn't help much. The bean counters and the sales people are at direct odds with one another right now. The question of how many cars would you like to sell vs. how many can you afford to sell is a constant struggle. Slow but steady growth is the mantra of the day. Everyone seems to be happy with that. Nobody loses jobs, and nobody's loosing too much money. If the dollar and the Euro were at parody with one another, We'd be talking a whole other ball game here.

I think that they sales will continue to climb at a probably smaller rate, but look to next winter to have dramatic increases from 2007, because of the release of the A4 into the US market.

I think that Audi's engine choices are also killing the sales. As an Audi owner, I think that having only a hand full of engines that have not been changed in a while must also have an effect. I've driven the 2.0T as a loaner car, and my friend has tuned his A4 2.0T a little and that engine is a blast. The 3.0 V6 I have in my A4 is just a pig on gas. I can't imagine the 3.2 V6 being too much better.

The new 3.2 with FSI and AVS is excellent on gas.

ok, thanks, I never knew that. (not sarcastic)

I have also had a 3.0Q and it was horrible on gas. I kept thinking, "I should have had a V8!" The 3.2 on the other hand, works it's little heart out in both the A4 and A6 platforms and manages execellent economy while dramatically increasing power at the midrange and high RPM levels. Don't be surprised of Audi offers that 3.0 Turbo engine from the upcoming S4 in the A6 as well. They did the same with the 2.7T from the B5 S4 back in 2000 model year. That would really give them something competitive to run against the 535 which is I think is their intent. Now, if we can just get the 4.2 up to about 400hp I'd think they'd cover that E550 motor. I don't know if any of you have driven that new MB 550 motor yet but that's quite an engine!

I had a chance to drive an S550 when they first came out and that car is just pure remarkable...

Down 28% Audi is just so pathetic.

Where were you during the months when they were up?

Can't blame 60 minutes for a 28% drop in Dec. 2007.

I went to look at the a6 last month to lease. When I mentioned the A6, the salesman said he was embarrassed to lease them the people. $800/MONTH W/ Money down! You know you have a problem when the salesman actually recommends against getting a car.

(I wound up with an Infiniti M35. Looks and drives great for only $550/Month & about $2000 down.)

Larry you are a moron, Audi is up 8% worldwide for the year over last year and is also up 7% in the U.s compared to last year.

Over 950,000 cars sold worldwide and fast approaching Mercedes-Benz and you are saying they are pathetic....

Larry is just so pathetic.

If Audi offers the employee lease deal on the B8 A4 at the end of 2008 I'll be bumping that number up for my wife or myself. Anyone think they will, or just offer it on remaining 2008 B7s?

"wow.. they seem to be losing share in the US!"

Are you mentally challenged? It clearly says "BUT STILL SETS RECORD FOR 2007" in the title.

I completely disagree amazinBimmer. First of all, Audi has gained marketshare in the United States as they have a 7% increase in sales over last year in the U.S. and up over 8.5% worldwide compared to last year.

Rivals have not blunted the AWD edge. Mercedes 4matic is a joke. Currently most people do not buy AWD BMWs or Benzes.

Audi will NEVER move to a core AWD architecture. Their history, brand image, and reputation revolves around Quattro.

This will mark the 12th straight global sales increase for Audi and they will also sell over 950,000 cars in 2007. This year in 2008, Audi is forecasted to sell over 1 million cars worldwide.

Audi will join only BMW and Mercedes-Benz as the three premium car makers to sell over 1 million cars worldwide.

Audi's profits are soaring they are building manufacturing facilities in the United States for the Q7, assembly plants in India and you say they are losing marketshare and the basics need to be fixed???

I can tell you sure as hell aren't a Research Analyst for the Auotomotive Industry amazinIdiot.

amazinIdiot, can you please provide some factual evidence that supports your theory that the other premium car manufacturers have blunted the AWD edge of Audi?

Again, you post silly opinionated comments with no factual evidence to support your claim.

All opinions and no factual evidence at all is amazinIdiot's way of bashing Audi.

What a moron amazinIdiot is:

The title reads "Audi sales down 28.5% for December! But Still Sets Record for 2007"

AmazinIdiot translates the title to, "wow, they seem to be losing share in the US!"

What an IDIOT.

AmazinIdiot posting his opinionated comments with no evidence to support his claim...

GermanNut Hi. I think you might want to double check your facts regarding your statement "Rivals have not blunted the AWD edge. Mercedes 4matic is a joke. Currently most people do not buy AWD BMWs or Benzes." because while I'm not up on MB's awd numbers i do know that as of two years ago BMW became the number one premium car manufacture not only in sales but awd vehicles, including Audi. In fact, i feel audi is having a tough time in the US market because of BMWs awd/X vehicles. Audi was a great alternative to BMWs because of Quattro but now that BM offers X on most of there lines buying an Audi is a harder selling proposition. Also Audi does have horrible money factors and residuals. They really dont go out of there way to make there cars competitive from a pricing standpoint although they really have great cars. If Audi would just make there cars more affordable than they would see a significant change in sales. Also they really need to bring back schedule maintenance. I mean why would a person lease an A4 over a 3 series that less expensive to lease and comes with total scheduled maintenance. Its a hard sell.

I agree. I think that perhaps Audi's edge on the other makes, outside of the US is their diesel engines (not that the others have bad engines, its just that Audi excels in diesels) and I think that they are finding it hard to push the diesel offerings in the US.

"it is truly a shame that with the "limited edition" rs4 and with a new Q7 they continue to get bashed in the most important market in the world."

If you still think the US is the most important market in the world, you need a reality check.

7aSon, yes BMW does sell more AWD cars than Audi. However, Audi has fewer models than BMW. However, that is soon going to change.....

With the introduction of the Q5 and Q3 SUVs along with targa versions of the R8, and diesel variants of the R8 along with the A1 mini-competitor and A7 Benz CLS competitor, BMW simply won't be able to sell more AWD vehicles than Audi.

At that point Audi will sell as many, if not more models than BMW. Also, as we very well know, Audi is going to have Quattro available on every single model offering with many of their new future cars such as the A7, Q5 and Q3 only being offered in Quattro AWD form.

That completely takes down your arguement.

Yes, I misread part of the article amazinIdiot, however, Audi is still up in the U.S.

What is this garbage you spew about the most important market in the world being the U.S??

Yes, the U.S. currently is the hottest market in the world, but in another 6 years China is going to overtake the U.S. as the largest auto market in the world. Audi has clearly outsold BMW and Mercedes-Benz in China.

How is the gap getting wider Moron?????

Audi is up over 8% worldwide from 2006. BMW is not up 8% worldwide.

Plus, what product blitz does BMW have that will compete with Audi's future A1, Q5, Q3, R8, and A7 models.

BMW already has more models than Audi and many of Audi's future offerings such as the A1 (in response to the Mini, Q5 in response to the X5) will be in response to BMW's existing models.

Audi is going to plug niche vehicles in wherever there is a possiblity and when Audi offers the same, or more number of models than BMW is when the fight will really heat up....

*Q5 in response to the X3

not to be off topic, but alot of countrries dont like the US!, Asia, Europe n Africa, "those places is where i been, so im speaking threw what i see, n hear, but dont get it twisted, US IS THE RICHEST COUNTRY, so it does matter what goes on here, most people thats SOMEBODY in those country PUT 20+ rims on $100+ cars, go beyond yah computer n use your passport, lol

as of Audi, there not going nowhere, for some reason they will stay either 2nd or 3rd, its a cycle...

"The US is still the most important market in the world."

"Still" is the key word there. We're not talking about private equity here--the US won't be the largest automotive market for much longer. Audi already sells more cars in China than they do in the US!

"SO< IDIOT< the gap is getting wider. in the US and the rest of the world."

NO. On a WORLD basis, which you don't have facts for, the gap is getting SMALLER.

BESIDES, why do you care so much? Do you have a major holding in BMW or something? Will it threaten your well-being if Audi ends up on top? Because I'll tell you this--my Audi stock has gone up SEVENFOLD in the last two years. Combined with the strength of the Euro, it's worth a helluva lot more than it was in 2005.

I feel bad for you, amazinBimmer. You just can't see straight. It's nice to be an Audi owner and a BMW owner; unfortunately, you'll never know that feeling.

Yeah first 11 months idiot. That does not include all 12 months ad with BMW's drop in December they are barely over 8% and likely under it.

Audi is growing steady over 8% worldwide.

Audi is closing the gap worldwide against BMW you are a true amazinIdiot.

You are a true amazinIdiot, "BMW said group car sales were up 8.3 percent to 1.35 million cars."

BMW group includes BMW, Mini, and Rolls-Royce.

You want statistical data for just the BMW BRAND....IDIOT

stfu germannut, he said brand sales as well.