What SUV is DEAD when the Audi Q7 hits town?

If you think Volkswagen has troubles now, wait until the Audi Q7 SUV is released!

The VW Touareg sales will go from slow to dormant.

We like the Touareg but most people who were the target customers will now switch over to Audi.

Why?

The third row seat availablity.

The only reason the Touareg has been selling so far is becuase most people have bought the SUV, as a protest against the Porsche Cayenne.

These customers wanted a Cayenne, but thought the Touareg was better looking and had a nicer interior.

Plus, most of the Porsche salespeople did not do a good job of articulating WHY someone should buy the Cayenne over the Touareg.

So instead of buying the Cayenne, our guess is that 95% of the people who ended up buying the Touareg, liked it better than the Porsche.

That will soon come to a halt when the Q7 is available.

The Q7 will be the best looking of the three and it offers a third row seat...a MUST have feature in this highly competitive segment.

Sorry VW...but that's what's gonna happen.

Never gamble against the Spies predictions.

We'd love to hear your take on this perspective in our blogs....

DiamondJim - 2/18/2005 12:42:27 AM

+1 Boost

"Never gamble against the Spies predictions."

I'm a loyal reader in the over 3 years I think I've been reading this site, 001 Rules and prediction are always spot on.

The car buff side of me lay dormant for many years until I found Autospies.A sleeping giant has awoken...

ferplexion - 2/18/2005 12:49:43 AM

+1 Boost

here's an idea for VW- why not release the Golf & GTI in America? Why is it taking so long for new products to make it over here? What are you waiting for, an invitation?

Also, it's about time that VW admits that the Phaeton project is disaster. Use the factory to build A8s and Bentleys, and let the VW brand concentrate on what it's good at- small, affordable, fun cars.

fam1 - 2/18/2005 4:01:25 PM

+1 Boost

VW would be fools not to care if people will substitute the Q7 for the Touareg. Cannabilizing your own products isn't something car companies strive for. Because of all the fixed costs involved in launching and manufacturing a new car VW must think they can find enough new buyers with the Q7 who wouldn't otherwise be buying the Touareg.

If they could produce one series (with different engines/pricing points) that hits both points effectively then I'm sure they'd do that to save money. If they were simply slapping an Audi badge on a Touareg and charging $5k more then it makes sense, but no matter how similar the cars are it's not that simple. Apparently they don't think the Touareg is enough for this market segment, but we'll see if they can succeed with the Q7.

Hyundai doesn't sell a $60k car in America because no one would buy it. The problems in selling the Phaeton are a less extreme example of brands trying to go upmarket too quickly. And it works both ways.