AUdi to build a $10 million indoor test track at the 2011 Frankfurt Motor Show

Although the 2011 Frankfurt Motor Show will open its doors in September, Audi announced today that it will spend more than 10 million euros ($14.3 million) to build an indoor test track at the well-known German show. With this amount of money Audi is planning to outshine its other German competitors, Bmw and Mercedes-Benz.
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Joe_Limon - 6/21/2011 12:02:02 PM

+3 Boost

Lets see... Audi's have a 8.7% margin, with an average car price of $38,601.57 USD. Leaving $3,358.34 profit per vehicle... $14,300,000/$3,358.34= 4258 vehicles...

Will building an indoor test track at a German autoshow allow for 4258 more vehicles to be sold then they would have otherwise sold?

AlleVier - 6/21/2011 2:14:55 PM

0 Boost

Not sure where you get the margin figure (nor, related to 610looper's comment, for what sales region), but if it's revenue after operating expenses, then advertising is already a part of the equation.

Joe_Limon - 6/21/2011 5:17:10 PM

+2 Boost

http://economicsnewspaper.com/policy/german/car-industry-volkswagen-surprised-with-a-big-jump-in-profits-19032.html

Audi's sales base can definitely afford it, but to be a successful advertisement it has to net more (extra) vehicle profits then it costs. Otherwise they would be better off not advertising.

AlleVier - 6/21/2011 5:39:02 PM

+2 Boost

I agree and I have my doubts about how effective this track will be in improving sales, but I was just referring to the math suggesting they needed to sell 4258 more vehicles.

IamEvilHomer - 6/21/2011 10:13:21 PM

+1 Boost

that is 10 million euros.
I think that is 2 trillion USD.

610looper - 6/21/2011 1:46:03 PM

+1 Boost

Is Frankfurt in the U.S. ? I believe this display will pertain to sales in Germany or Europe, that other market for cars outaide of the U.S.

BimmersNme - 6/21/2011 7:54:38 PM

+2 Boost

"With this amount of money Audi is planning to outshine its other German competitors, Bmw and Mercedes-Benz" - Good luck AUDI...

1BadMan - 6/21/2011 8:07:04 PM

+1 Boost

VW should really get "Audi" to spend that money in the manufacturing segment as their problems-per-100cars-built is still really lacking. And what the hell do they need a track at a car show for? So they build a track and BMW & Mercedes-Benz will have a new shiny way to spotlight their cars! Bad planning.

IamEvilHomer - 6/21/2011 10:14:45 PM

+1 Boost

Audis have no problem with build quality.

sdcarguy - 6/21/2011 9:58:30 PM

+1 Boost

The GREAT recession is officialy over, at least in GERMANY. CALLED IT.

IamEvilHomer - 6/21/2011 10:15:13 PM

0 Boost

thanks to Obama

chief4 - 6/22/2011 11:11:57 AM

+1 Boost

blazinboy has it right. its not really a test track. BMW had a 20mph MAX track for those who wanted to take a drive. Not really anything to write home about. I'd say, and I like Audi, they are following BMWs lead here....and again, like blazinboy, I will NOT miss the Frankfurt show!!