Is Audi's star rising faster than the other German marques and if so, why?

Is Audi's star rising faster than the other German marques and if so, why?
Turnarounds are a peculiar thing.  Fifteen years ago, Audi was all but dead in the USA.  Following the unintended acceleration claims of the late 80's the Audi name was a severely tarnished commodity with little street credibility.

With the introduction of the A4 in 1995, Audi was able to capture the hearts, minds and most importantly dollars of buyers fielding a competitive car that was stylish and handled great.  The original A4 did what few have been able to do, beat the BMW 3-Series in numerous comparison tests conducted by the print magazines of the day.

Fast forward to 2009, and the foundation laid by the A4 is paying BIG dividends for Audi as it launches one hit after another after another.

While the Mercedes brand name suffered during the early part of this century, Audi consistently made strides in fielding a great car that has earned the respect of the consumer, while forcing competitors to burn the midnight oil in an attempt to stay ahead or at least on par.

Their efforts deserve to be applauded as the shift of the luxury/sport buyer seeking a German car really has gone from a BMW/Mercedes focus, to more of a BMW/Audi focus.

Audi has a credible player at all levels of the market, and hasn't really lobbed any half hearted attempts at a particular segment within the US with the possible exception of the A3.  The A4/S4, A6/S6 and A8/S8 are all competitive to others within their respective segments, and the beautiful lines of the A5/S5 really have no parallel in terms of sheer beauty.  All of the offerings tend to lean more to the sporting side of the spectrum than they do the sheer luxury side, a fact that hasn't hurt Audi.

But we all know looks alone don't make a winner, it is the content.  And while automotive writers the world auto have fawned over the "Audi Interior," the fact is that component is an item done extremely well at ALL price points across the Audi lineup.

Combine the interiors with some pretty compelling engine and drive train choices wrapped in some good looking sheet metal and it becomes apparent why Audi is enjoying their success.

So if Audi is the rising star on the block, should the others be worried?

And more importantly, what things has Audi done to impress you in their monumental shift from an also ran to a front runner?

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VISOVISO - 2/15/2009 12:09:25 AM
-7 Boost
Ignorant post. Where have you been. Head stuck in the sand or in the hood of your broken down Bimmer?


sectorsector - 2/14/2009 12:09:00 AM
-12 Boost
Audi will see more market share in the future, you only have to sit in one for a few minutes to realize the level of quality is that of premium brand, cost cutting seems not as apparent as BMWs (fake leather, flimsy seats, 80s interior, quality control nightmare, etc) it seems you actually get what you pay for with an Audi. This means they'll continue to win over customer not lose them like that Bring-More-Worry brand.


bmwcsbmwcs - 2/14/2009 2:42:45 PM
+6 Boost
To bad over a million people a year for the past 8 years have bought BMW's..


SixxFiveSixxFive - 2/14/2009 12:19:39 AM
+5 Boost
No. Audi's sales pale in comparison to BMW and Mercedes. If consumers can't purchase a Tier 1 luxury M-B or BMW, they will consider and purchase a Lexus before even thinking about an Audi, if at all.


GermanNutGermanNut - 2/14/2009 12:37:22 AM
-6 Boost
Look at Audi's great GLOBAL sales increase in 2008. Audi posted a 4.1% sales increase GLOBALLY to reach 1,003,400 units for the year. Audi has increased its global sales for 14 straight years. BMW and Mercedes haven't done that.

Did BMW and Mercedes increase their sales in 2008? NO!

Mercedes posted a 5.1% decline and BMW posted a 5.8% decline. Furthermore, Audi has released a smash hit of new models in the A4 and A5 along with the Q5. These are volume models that many people can afford to buy.

Audi has a stronghold on the Chinese market which has already surpassed the United States for car sales in the month of January and will surpass the United States as the world's largest car market maybe even by the end of 2009 considering how bad the U.S. economy is doing and the recovery that was scheduled for the Q3 and Q4 2009 seems to be fading rapidly.

Mercedes-Benz and BMW are getting crushed by the crumbling U.S. market. Look at Mercedes January 2009 sales decline 35% globally and over 40% in the U.S.!

Audi has a nice fat profit margin thanks to economies of scale provided by VAG's ownership. Does BMW? No!

Furthermore, Audi actually outsold Mercedes worldwide for the month of January (56,000 units sold for Audi vs. 53,300 for Mercedes-Benz!) Why? Because Mercedes sales tanked 35% globally! Audi only declined 28% globally (still not great, but not as bad as Benz)

Lastly, the Audi A6 outsells the BMW 5-series and Mercedes-Benz E-class globally.

Unless you are blind, of course Audi's star is rising much faster than Mercedes' for sure. Audi is the only one to post 14 years of consecutive sales increases. Audi is the only one to have an economies of scale advantange. It looks like Audi's star is rising faster than BMW's thanks to its long-term focused strategy on profit and success through design and technology. We certainly have seen the design aspect courtesy of the A5 and R8 and the technology is now being phased in thanks to the Sport Differential and ADS that allowed the Audi S4 to handily defeat the BMW 335i in European comparison tests.

The facts speak for themselves. As of right now Audi has outsold Mercedes-Benz in 2009. If these trend keeps up the star has already risen and it will be BMW and Audi with Mercedes-Benz being the 3rd highest selling premium luxury brand.






AudiphileAudiphile - 2/14/2009 1:54:54 PM
-1 Boost
Well done, GermanNut. I couldn't have said it better.
I wouldn't write off Mercedes-Benz quite yet, though. It's still the world's oldest automobile company, the build quality and technology is excellent, that 3-pointed star conveys a lot of marketing cachet, etc. But Audi is definitely on a roll. I have owned 2 BMWs and a Mercedes-Benz in the past, but I'm on my second Audi now. I will be getting an S4 when it debuts this fall.


dlindlin - 2/14/2009 12:39:20 AM
+7 Boost
I'm not sure if a company selling FWD and AWD can catch up w/ others - Look at ACURA, it's exactly the same situation.

Me? I couldn't care less about a company without RWD.


S4cabriofoxoneS4cabriofoxone - 2/14/2009 12:54:02 AM
-3 Boost
It's just stupid to compare Audi to Acura. Acura has been declining for several years now. Their styling is a mess, their engines are jokes. Audi's new models have received nothing but praise if only from a design standpoint. People are noticing Audis now.

They used to be comparable, but I feel like Honda is putting less and less of its resources towards Acura, and boy, is it showing. VW lets Audi run on its own terms.


S4cabriofoxoneS4cabriofoxone - 2/16/2009 11:11:42 PM
-3 Boost
I'm pretty sure it's you who can't accept that Audi is moving up. You're constantly trying to bring them down but it doesn't work. Overall, Audi is the one growing faster than any other luxury brand--they are gaining in market share and profits. Every new car they've come out with lately is a winner. I don't see why Audi has haters at all. You may prefer RWD cars but you can't deny the fact that Audi makes the best alternative. They are not equal to Acura at all. Just compare the brand presence (WW and otherwise) and the respective product pushes.


S4cabriofoxoneS4cabriofoxone - 2/14/2009 12:52:36 AM
-4 Boost
Yes, because they have much more room to grow. BMW and Mercedes are already established. While Audi is established worldwide, they are only just making a name for themselves in the US.


Lamborghini_vs_Ferrari_RacerLamborghini_vs_Ferrari_Racer - 2/14/2009 1:02:27 AM
+5 Boost
BMW vs Mercedes vs Audi - Well, they are all GERMAN


elduderionelduderion - 2/14/2009 1:58:26 AM
-2 Boost
Its funny because comments on here cite sales figures are low compared to BMW/Merc, therefore Audi are not a rising star. They are a rising star because of the increases they are getting, in a depressed market. Clearly buyers are abandoning Merc and BM's for Audi's.

I would buy an Audi before a BMW and certainly before a Mercedes. I simply don't feel comfortable about the idea of owning a Benz (I can afford one) and I like BMW's but the 3 series in the Bay Area is insanely common. I would take the new S4 before the 335i, and 2.0L Turbo A4 before any other 3-series.

I think the Audi's design is head and shoulders above BMW's and has a desirability that's lacking in new BMW and Mercedes products.


S4cabriofoxoneS4cabriofoxone - 2/14/2009 4:01:14 PM
0 Boost
I don't understand this view. Audi's $75K+ cars (A8, S8, R8) are all as good as their BMW/Merc competitors... if not better (S8 and R8). It would be a shame to not look at those cars just because of a mental price barrier.


S4cabriofoxoneS4cabriofoxone - 2/15/2009 1:24:56 AM
-2 Boost
I think if you drove up in an R8, you would get a lot more noticed than if you drove up in ANY BMW or Benz.


XYZZXYZZ - 2/17/2009 1:19:57 AM
+1 Boost
it seems europeans and europhiles are more caught up in badgewhoriness than americans. one reason MB does not bring their cheapo models to the u.s., for fear of "diluting the image."

audi will NEVER be able to shed their vw connections to this group. worse, they are joining VW in planning new sub-compact 'city cars.'

they shoulda LEARNED the lesson of vw's Phailedton. NO amount of mechanical goodness can overcome a lowly image.



david999david999 - 2/14/2009 3:00:25 AM
-9 Boost

I checked out all three German brands yesterday, and I have to say that the Audi interiors impressed me the most for the money. However, the Mercedes felt more solid. If Audi lowered their prices, they would probably sell much better in North America. When prices are basically the same, the badgewhores will always choose a Merc or BMW first over the Audi.


spicypopsspicypops - 2/14/2009 7:07:21 AM
-4 Boost
oh please, bmw cant touch mercedes .. upper sports car segment bmw only wished they could step up to mercedes .. SL , SLR ,CL, CLS, .. how many bmws do u know that can step up to these ????? Just the M6 .? One of the boldest and ugliest cars alive ...


wac77wac77 - 2/14/2009 7:36:09 AM
+7 Boost
First let me say that I like Audis. They have done a remarkable job of improving design and quality (particularly interiors) across the line. And they have been justly rewarded with higher sales growth than BMW and MB.

The problem that I see is that more than half of Audi's worldwide sales are of FWD cars. While you can make an excellent FWD car (and extend its appeal by offering AWD), some luxury car buyers and most purists/enthusiasts still regard RWD as mandatory. That keeps BMW and MB a bit ahead of Audi, in my opinion.






AlexTxAlexTx - 2/14/2009 10:33:35 AM
-5 Boost
Actually, Audi sells about 65% of its cars with Quattro globally and 80% of it's cars in the States with Quattro.
Any Audi with more than 260hp has Quattro Standard on it!
I like when people say that when people want a premium car they look at Beemer and Benz and not Audi. Funny considering that Audi's clientele has a higher income than Beemer and Benz clientele.
Sure Audi's sales are still off the pace of BMW and MB, but Audi is gaining more and more market share on these 2 and even Lexus.
Audis are still less expensive than similarly equipped Benz or BMW, and offer more, but yes prices have increased over the years.
Audi had to; it is the only way to be seen as a player. You don't know how many times I had people not buy an Audi from me because it was not expensive enough (although it had more options than the competition).
People now compare less Audi with Acura or Volvo, but straight with BMW (#1) and Benz (#2). That was the whole point.
If your car is priced much less, then how can people think you are a Premium brand???
Did you know that the U.S is the only country in the world where an Audi is priced less than BMW or MB??
Give Audi some time, but at this pace, they are on par to be one of the top selling Premium brand in the world.


hyundaifansdotcomhyundaifansdotcom - 2/14/2009 12:06:14 PM
+3 Boost
Audi has been on a winning streak lately. That R8 is something special!


mini22mini22 - 2/14/2009 12:54:26 PM
-4 Boost
Well BMW is in trouble at the moment. They expanded too quickly by depending on leases. Now that credit is tight they are starting to struggle. In fact if the economic climate does not improve BMW could be a take over target within a yr or so.The Mini sells but is barely making a profit.(The original Mini did not make a profit for them)I'm not saying that BMW does not make a great product.In fact they do.But currently they are not a rising star because of the way the company has depended on their leases for growth. It is now turning against them.Mercedes makes a good product as well. They have been struggling however to overcome reliability issue's due to the complexity of the options and standard features they have been offering in their cars over the last dozen yrs or so. The've been faced with a lot of electrical gremlins and have struggled to overcome them.Supposedly with unloading of Chrysler this has helped them focus more on reliability. They also have had trouble marketing a small car. Lets face it small cars will become more and more popular and necessary as gas prices creep up and government fuel economy regs become more and more of an issue.That's why MB and BMW were talking about common shared platforms. As of the moment BMW and Fiat have been in discussions. However the latest is that talks have not gone well but are still continuing.That brings me to Audi. For yrs BMW and Mercedes have been at the top of the Luxury and near luxury segment. Audi for a long time had been the cheaper wanna be. Worldwide sales are up for Audi and they are doing better in the US even if they do not sell in the volume that MB and BMW do. However they have a great advantage currently over MB and BMW. 1st they are part of VW group so they have an array of platforms they can use for all different market niches. 2nd they are now owned by Porsche,which is the most profitable car company in the world and also has done some clever financial hedging to make the value of VW go up.3rd this conglomerant is much larger then BMW and Mercedes. So the over all outlook for Audi then has to be considered brighter at the moment then BMW or Mercedes.As far as sales in the USA it is still catching up and you've got Lexus in the equation as well.But Lexus is part of Toyota group which has also lost a great deal of money recently and has taken the first major loss in it's history. So in summary Audi is in a better position right now then either BMW,Mercedes and Lexus. It is a rising star and will continue to be for the future.


S4cabriofoxoneS4cabriofoxone - 2/14/2009 4:04:36 PM
+1 Boost
I am still blown away by the Audi hate around here! Anybody who is saying they are a rising star is de-boosted. NOBODY is putting BMW and Merc down, but I think it's pretty obvious that Audi is growing faster than either one. Just look at the numbers! Facts are facts and they cannot be changed.


S4cabriofoxoneS4cabriofoxone - 2/16/2009 11:13:52 PM
+1 Boost
Your view is SO flawed.

The E-Class is not Merc's best-seller in the US IIRC. The sales to Euro taxi fleets are what drive up E sales, and those E-Classes are hardly more expensive than A4s, if at all. Not to mention... the A6 is the best-selling car in its class worldwide. You can keep on trying but you're never right. BMW's best-selling car is the 3, and I don't see you ragging on them.


BillBill - 2/14/2009 4:51:33 PM
+5 Boost
There is a reason I stopped posting on these boards a long time ago (with only a few periodical check up visits on my part). There are some interesting posts and ideas in this thread - and they're all deboosted while clear fanboy-talk is boosted. I've said this a long time ago but this whole boosting/deboosting system here is pointless. It's obvious it is being abused.


BondMI6BondMI6 - 2/14/2009 8:13:53 PM
+1 Boost
Americans and now other countries (China,other Asian markets) understand that UNIQUE sells. After 2 decades of dominance EVERYONE now has an Merc or a Bimmer. Audi is poised to move forward as it is still a relatively unique vehicle that offers an excellent interior and a unique (S5 HOT the rest I'm still debating)exterior. It is this uniqueness that propels Audi forward. Still, the new A5/A4 interiors while good use more plastic than ever before (the MMI centered in a cheap silver plastic wraparound cover is a perfect example)and I feel Audi needs to be careful not to get cheap and take their R8/S5 success too far.....


THESCOOTERTHESCOOTER - 2/14/2009 11:04:55 PM
-5 Boost
I have to say that I personally think that Audi has done a great job with their product. Their challenges is NOT with their product but with their brand. The reality here in the US is that Audi does not carry the cache of Tier 1 luxury brands including M-B, BMW & Lexus (excluding pricier marquees). Audi is in a great position in terms of where their product stacks up in each segment and you can make a case for each of their vehicles to seriously consider on a rational level -- it the emotional or intangible that seems to be devoid in Audi's character. You buy a Merc, and you are buying into prestige, a great emotional satisfier. You buy a BMW and you are buying into a performance heritage which is undeniable. You buy a Lexus and you have made an assured quality decision; a smart buyer. You buy an Audi and you get a great product -- comparable to the others, but you have not bought into anything specifically. Audi product is certainly on the rise -- and in a more practical reality maybe this is where they make in roads into previously uncharted territory. However, I think they still need to stand for something to buy into -- other than good product I don't know what that is?


VISOVISO - 2/15/2009 12:24:59 AM
-5 Boost
When you buy into Audi as most recent customer surveys have show, you are buying into quality and performance. As for the bunk about BMW performance heritage is already getting funny. Audi and Auto Union have performance heritage that stretches more than 100 years winning races as far back 1905. The problem here and with most of the posts is the comments that come from either intended bias or simply lack of any knowlege about Audi history or heritage. As for performance heritage, no one including BMW can touch Audi currently in terms of motor sport success or prowess. Audi has been Tier 1 for quite a long time. To say the A8 or any Audi for that matter is not Tier 1 is a clear lack of understanding or just plain bias. In Europe the the A8 easily outsells the 7-Series for example and in Russia Audi cannot build enough W12s to satisfy the rich Russian elite. Sorry, but Americans need to catch up to the rest of the world here already. Europeans laugh when an American mentions Lexus in the same breath as Audi, BMW or MB. The joke is on you.


THESCOOTERTHESCOOTER - 2/15/2009 12:29:23 AM
-1 Boost
Hey I am a huge Audi fan, I work in this business and am an observer. I personally can't wait for the next gen A8 and the new A4 2.0T is unreal following the R8 and their leading edge diesel technology. I am with you...the sales simply don't translate here in the US and I personally think it's an image thing nothing to do w/ the product. Sad but true I'm afraid.


BillBill - 2/15/2009 6:57:47 AM
+4 Boost
"Europeans laugh when an American mentions Lexus in the same breath as Audi, BMW or MB. The joke is on you."


Indeed.

In Europe Lexus is a brand searching for a mission. The luxury market on the Old Continent is much harder to crack. Diversification of the product line is a must and as we all know Lexus has refused to do this believing instead they can win over customers with inefficient but powerful engines (that goes for hybrids too) and similarly priced cars. No. It doesn't work that way. What Lexus really needs and lacks is brand heritage. A hundred years can pass and Lexus still won't have the heritage of its chief rival - Mercedes-Benz (BMW, Audi, Jaguar etc., too).

Lexus is most successful in the United Kingdom. Many Lexus press releases about "sales increases in Europe" are slightly ajar because they should specifically say "UK" instead of Europe.

But you are correct, Mr. Viso. I have been to Europe often within the last few years and Lexus is not a consideration when it comes to luxury cars for the average European. The big luxury sedan players are still Mercedes-Benz, Audi and BMW followed by Jaguar and then other European premium brands such as Lancia, Citroen (C5/C6), Renault (Laguna), Peugeot (407) and yes, even the brilliant Skoda Superb.


Yonder7Yonder7 - 2/15/2009 9:45:30 AM
+3 Boost
Again, my favorite brand is Benz but I do not have closed eyes. Audi is doing a great job, beside the ultra ugly cars that BMW is doing X6, V5, and high prices of the Benzes, There a big chance for Audi.


vwrulesvwrules - 2/15/2009 8:50:31 PM
0 Boost
I love Audi but the cost is a little more than i could take probably go VW Passat CC AWD for the price or bang for the buck and class factor its hard to beat 36.000clams.


NeverfollowNeverfollow - 2/16/2009 11:52:32 AM
-2 Boost
Funny, Audi came within 100K car sales of Mercedes Benz's sales results last year. Who would of thought that to be even possible a few years ago? They also more than doubled the sales of Lexus cars worldwide last year. Audi is a brand that's on the rise and stupid Americans are such badge whores that we simply ignore them almost entirely. We think we know better when really, we're just victoms of marketing dollars. Brands like MB especially, have a long and distinguished history and people keep buying them based on those long past glory days, despite being ranked by consumer reports as dead last in predicted reliability as recently as 2007! Despite the numerous articles written in car magazines about how cheaply they are made and how much of their technology simply doesn't work. (2003 E Class braking systems for example). Don't even get me started on BMW and Lexus, the other so called "Tier 1" brands. There's simply not enough space here for all of that.


mini22mini22 - 2/16/2009 6:36:09 PM
-1 Boost
1st I would say Audi has the best interiors of the 3 marquees.2nd because Audi is part of a larger conglomerant they have access to all
different platforms to creat nich models in the market. 3rd they can make more money on a small car like the A3 and A4 because again shared platform within VW Group.Mini for BMW is barely making any money if at all.Without Mini sales BMW group as a whole would look a lot worse in sales.Mercedes has Smart but it success seems to be in the US. Overall it has lost money for MB in the past.Now that the world economy is in the crapper the sales of Luxury cars are taking a nosedive. Mercedes in particular has really taken a hit on the S class. Since Audi does not sell as many A8's as Mercedes and BMW selling their luxury cars it is not as affected by the downturn.An E class may cost more then an A4 but if Audi can make more of a profit on an A4(due to shared platforms) and sell a higher volume of them then who has more sales and who is making more money.So you have to go with Audi on this one. They are,especially in this economic climate, better positioned to be the rising star over Mercedes and BMW.In addition while the Quandt family has majority stock in BMW,there is no Wendel Weidike(head of Porsche-can't spell)running the show for them like there now is a VW Group.If the Quandt family decides to get out of BMW they as with Mercedes would be a ripe takeover target.Audi,on the other hand is protected.


caznable33caznable33 - 2/16/2009 8:58:22 PM
+2 Boost
The fact that there is even discussions being debated like this one in the first place means that Audi's rise is actually happening IMO- after all, I don't see any other well regarded brands like Infiniti or Volvo being spoken of with the same attention or perspective that Audi has been. I constantly read about Auto industry news and have noticed that within the last year or two, more and more articles and discussions about Audi's rise in awareness and popularity in the US. There has been definite increase in the buzz around the brand- it seems that Audi is almost becoming the Apple computer of the luxury car world, with progressive, avant garde styling, high quality workmanship and a certain uniqueness and anti-establishment air to. With BMW's and MB's being so common everywhere now that even teenagers are driving them used, Audi's seem to have (whether real or not) more exclustivity in their relative rarity.


1dott81dott8 - 2/17/2009 12:16:51 AM
0 Boost
all of you bmw cock suckers kill me. audi has been doing well but you don't want to admit it. if you want to argue or not the facts are the facts.

http://www.worldcarfans.com/9090216.022/audi-is-western-europes-top-premium-brand

it's not like audi fans are making this stuff up, it's proven. audi is climbing the ladder and you bmw ball lickers can't handle it. de-boost at will.


VISOVISO - 2/17/2009 2:03:23 PM
-1 Boost
Another interesting fact released:

"In January, Audi surpassed its premium competitors with regard to new-vehicle registrations in Europe. The Ingolstadt-based automotive manufacturer sold 45,124 new vehicles in this region in January – far more than either of its key competitors. While the overall market has come under pressure, Audi managed to considerably increase its market shares. The brand with the four rings accounted for 5.1 percent of new Western European vehicle registrations in January 2009. Audi’s market share for the same month last year was 3.9 percent."


Source: ANE




supermotosupermoto - 2/18/2009 11:51:39 PM
+1 Boost
R8 and S5 are a step in the right direction, no doubt. but there is still work to be done.


SteveSteve - 2/19/2009 4:44:20 PM
+1 Boost
I don't know if Audi is a "rising star", but their cars appeal to me, a long-time BMW owner (12 years, 3 vehicles, I still own 2). To my eye, Audi's exteriors are not drop-dead gorgeous. They're "just fine." Meanwhile, BMW's 7s and 5s have earned a reputation amonst polite people as having "polarizing styling", and being ugly amongst the blunt. The BMW 3's styling is the "best" from BMW because it resembles the 7 and 5 the least. (Better for having *less* spam ;-)

When it comes to interiors, Audi seems to offer a practical, no-nonsense, (relatively) low-glitz, approach. BMW's current offerings appear to be trying "too hard" to be fashionable, and trendy, and "cutting edge" with the often-flamed iDrive. Sadly, they look cheap, even though they're made from expensive materials.

With respect to defects, Mercedes has been suffering for defects numbers that don't live up to the stellar MB reputation. BMW has never been known for its lack of defects, though my '97 cab has been wonderful, but my friends with newer BMWs all reports less than satisfactory freedom from problems. I understand that Audi's current defect numbers are not stellar either, but better than BMW and MB, though not by a wide margin.

So between Audi, BMW, and Mercedes, Audi gets my vote today, and the A5 convertible would be my next car.


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