Audi Nets An Astounding $3.65 Billion In Profit For 2010

Wow! How does Audi's world profit compare to BMW's and Mercedes? Just curious, because BMW is known to be The Example of a well-managed car company. I'm just wondering is Audi is rewriting the automotive landscape.

Audis high returns are due to its significant platform/engine sharing with VW. Where Mercedes and BMW, have to develop most vehicles from scratch which are exclusive to the brand.

cs4444 write "Audis high returns are due to its significant platform/engine sharing with VW. Where Mercedes and BMW, have to develop most vehicles from scratch which are exclusive to the brand."

Respectfully, is this a fact supported by data (please share), or just speculation? I'd be amazed to learn that this one factor does indeed make such a substantial difference with respect to profitability.

Q:How else would Audi be able to make more profit despite selling less cars than the other two?...not magic.

A: They have less costs.

Q:What does a car company spend all of its money on?

A:Designing, developing, and manufacturing new cars.

Q:So how does Audi have more profit?

A:Manufacturing-Some Audi and VW vehicles are made in the same plants.
Development-Audi utilized many VW components(chassis/engine) for its smaller models A1,A3,TT. BMW, and Mercedes develop and manufacture a larger percent of vehicles independently. And the cars are exclusively to their luxury brands.

Respectfully, cs4444, speculation that sounds like it *could* be right, does not mean that it *is* right (see Toyota unintended acceleration for a great example). I'm just asking you for the data that supports your belief. For all we know, BMW could be less profitable because it pays its execs fatter bonues, or because it spends more on advertising. I am not saying this is the case. I'm just pointing out how speculation, no matter how reasonable it sounds, isn't the same thing as facts. To some, that distinction makes a hge difference. For others, not so much.

It isn't speculation...are some VW and Audi's made in the same factories? YES.
Do they share platforms? YES

Those are facts you can look up.

The next part requires a little commonsense and basic understanding of economics.

Here is a link why your Fat check theory doesn't float.

http://www.bmwblog.com/2009/10/28/bmw-will-tie-executive-compensation-to-the-pay-for-blue-collar-employees/

As a percentage of sales dollars:
Audi 9.4 percent
Mercedes 8.7 percent
BMW is expected to report < 7.7 percent

I'm not surprised.
Lucky for them that there are people who are willing to pay their outrageous MSRPs.

Boring/mundane/generic sells. Just ask Toyota.

Wow! Sore grapes much cs444 and Agent009? Audi spends tons (what was it recently announced 15 Billion Euros on R&D alone and develops most technology and platforms in-house. Stop spreading BS cs444). Congrats Audi! Put the nail in the coffin of the two most overrated car companies in the world.

15 billion over a number of years. Whats impressive is how close Mercedes and BMW are to Audi in terms of profit..considering Audi DOES rely heavily on VW( A1, A3, TT..some of audi's biggest sellers) are all thinly veiled chassis/engines that were developed by VW. LOL, Audi is going way down market just to get sales with the A1.

BMW is spending huge R&D on the Megacity, along with the full development with every vehicle in its range. BMW Group is Dow Jones Sustainability Index Leader for 6th consecutive year. The Dow Jones Sustainability Index is the most influential stock index for sustainabilty-driven companies worldwide. BMW is the most efficiently run car manufacturer for its size.Fact.

"...considering Audi DOES rely heavily on VW"

Or has it always been the other way around?

"Volkswagen was in serious trouble by 1973.[13] The Type 3 and Type 4 models had sold in much smaller numbers than the Beetle and the NSU-based K70 also failed to woo buyers. Beetle sales had started to decline rapidly in European and North American markets. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership of Audi / Auto Union proved to be the key to the solution – with its expertise in front-wheel drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known as the Passat, Scirocco, Golf and Polo."

Sorry, that was from Wikipedia.

http://en.wikipedia.org/wiki/Volkswagen

And I've posted this many times, but for this audience, I've feel like I've got to spell it out: Audi is responsible for VW's success and has continued to save it's hide. The idea that Audi's are based on VW development is so bass-ackwards that I want to wretch when people talk about the "Volkswagen roots" of certain Audi models. The roots are Audi, through and through. When you talk about Audi's being based on VW's platforms, know your history, folks.

Allevier - unfortunately facts don't hold much weight with Audi haters here. I used to feel compelled to set the record straight on every untruth posted about Audi on autospies but now I just shrug it off and move on. Audi is succeeding because it is doing many things right. The naysayers here think they can somehow slow down Audi's momentum by spreading their misinformed opinions and deboosting copiously with no reason given. None of this will changes the facts behind Audi's success.

"When you talk about Audi's being based on VW's platforms, know your history, folks."

LOL, correct me if i am mistaken what came first the polo or the A1? The golf or the A3?

1 series competes with the A3 not the A1. And Smart doesn't wear a Mercedes badge it a sub-division of Daimler.

What it says to me is that Audi's are over priced.