Audi kills plans of Q7 hybrid for the U.S. due to weak dollar

I hate to tell you this, but BMW isn't immune from the effects of the US market either: I assume you've heard of the pun not the sharpest knife in the drawer or the sharpest pencil in the pencil box:



GUIDO REINKING
BMW falls victim to U.S. success

If there were an award for last year's most profitable premium brand, it would be an unequivocal victory for Mercedes-Benz.

After cutting Chrysler loose, profits at Daimler, Mercedes' parent, have shot upward like an untethered balloon. None of its rivals could keep up.

There was a surprise in last year's results, though. Audi's profit margin topped BMW's. And Audi accomplished the feat without being the best selling premium brand in the US.

BMW's comparatively bad showing demonstrates just how right CEO Norbert Reithofer has been in pursuing drastic cost reductions. Anyone who continually sells more cars without making more money is heading in the wrong direction.

BMW's results can be excused only partly by rising raw material prices. In the United States, BMW has become a victim of its own success. The weak dollar most hurts the import company selling the most in the United States.

But some of BMW's problems are homegrown. The 7 series has $2,500-$5,000 dealer incentives in the United States. BMW wouldn't need to support the vehicle if it were more attractive.

The U.S.-built X5 premium SUV scores well with U.S. customers and reportedly has 60 percent local content. But its expensive engines and transmissions still come from Europe and must be paid for with a weak dollar. So it hasn't had the effect on BMW coffers that the company was seeking.

In a perverse sense, Audi should be grateful to Ralph Weyler, its departed sales and marketing chief. Contrary to his clear mandate, Weyler only halfheartedly looked after the American market.

Weyler's inattention helped put Audi behind Mercedes and BMW in U.S. sales. But as an unintended positive result, the dollar's weakness today is barely affecting the company.

That's certainly a silver lining. In fact, it makes one wonder if the folks at Audi might be secretly hoping for Americans to buy a record number of BMWs again this year, too.

Guido Reinking is editor of Automobilwoche

the economy is really going down lately; with homes actually becoming affordable, how everywhere is hiring, gas prices going up, etc.

Audi was a few years late to the party with the Q7. They should axe the model entirely. One ugly car.

American products are selling in Europe because of the weak dollar.

California wines.
http://www.calwine.com/

Suhr Guitars and Amps.
http://www.suhrguitars.com/

;-)

If they don't sell it in the US, who will buy it?

Scapegoat

bad decision. Dollar is weak, sure. But we can see one thing from this. Audi doesn't care to go "Green", and doesn't care what SUV customer really need.

I have stated this before many eons ago...and here, I'm sayin it again. Most european car companies promises lots of future products, especially Audi. Having said that..I remember stating that most european car companies reminds me of strippers. showoff just about everything but well not strip all the way as in teasing ya. Audi, BMW and Mercs are all good at enticing folks with false propaganda. On the flipside, Japanese counterparts are usually very quiet about their products. It's almost like a secret project and bam they deliever. When Q7 was on the autospies.com about 2 years ago..All the Audi fans were cheering on and claiming how they'll surpass Japanese. It was not to be. Japanese continues to prove over and over again. Now Europeans are doing what Americans have done in the past. Giving up a technology, very high in potential and just giving up b/c they are tired of getting their asses kicked by Japs.

I have never liked the Q7's looks either, but I generally don't like SUV styling anyway.

Actually, the Q7 is selling quite well. As for discontinuing the hybrid gas/electric Q7, it's just as well. They will be introducing a turbodiesel Q7 this fall, which would appeal to the same people considering a hybrid, and a diesel/electric hybrid version of this car about a year after that.