Audi may suspend high-end car production if slump deepens

Audi may suspend high-end car production if slump deepens
(Reuters) - Volkswagen's (VOWG_p.DE) Audi division may suspend production of high-end luxury vehicles early next year if a slump in western European auto markets worsens, Audi's top labor leader said.

German premium car makers were considered largely immune to the crisis buffeting mass-market European auto manufacturers. But cracks are beginning to show as slowing economic growth and persistent unemployment deter customers from making purchases.

The world's number-two luxury car maker has twice shuttered its second-biggest plant in Neckarsulm in early and late October for a week each time, affecting production of models including the A7 coupe, the A8 sedan and R8 sportscar.

Neckarsulm, which lies near Stuttgart in southwest Germany, builds models ranging from the A4 sedan to Audi's most expensive cars such as the 70,000-euro A8 and the 125,000-euro R8 Spyder.

The October stoppages "are sufficient for a short-term period", Audi works council chief Peter Mosch told Reuters.

"Should the market situation deteriorate considerably at the start of next year, then it is possible that further action may have to be taken," said Mosch, who also sits on the supervisory boards of Audi and its parent V
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PQ40PQ40 - 11/28/2012 3:59:33 PM
+4 Boost
They should stick to what they do best. Making mildly worked over VW's for badge whores.


aarononymousaarononymous - 11/28/2012 6:42:08 PM
0 Boost
yeah the R8, A8, A7, A6 really suck and just don't stack up



PQ40PQ40 - 11/28/2012 6:54:22 PM
+3 Boost
Thank you! Bland styling, one dimensional driving experience(except for the the R8), understeer.


chewychewy - 11/29/2012 10:11:09 PM
0 Boost
So if an Audi is an overpriced VW because they have a common building block platform for a few models then what is Porsche? The Macan and Cayenne and perhaps the next Panamera are then essentially just overpriced Audis? Or maybe VWs are just underpriced Audis and Audis are just underpriced Porsches? Using your transitive platform properties my mind wonders the possibilities that exist.


AShul007AShul007 - 11/29/2012 9:47:54 AM
0 Boost
it's a shame. I think the designs are really beautiful. I have also had the opportunity to drive the r8 spyder as well as the a7.
really cool cars. would be cool to be able to own one.
Hope the economy picks up so people can continue to develop new designs and wonderful driving machines.
also, hate to hear people are being laid off.
best of luck vw/audi


GermanNutGermanNut - 11/29/2012 11:24:57 AM
-2 Boost
Audi is doing just fine.

1)Global sales are rising faster than BMW and Mercedes-Benz.

2)Last year Audi overthrew Mercedes-Benz for the title of world's second largest premium luxury brand.

3) Audi is already more profitable than BMW and rapidly closing the sales gap each year.

4) Mildly worked over VWs have been stomping all over their respective BMW counterparts. Just see all the recent tests where the A8, A7, A6, R8, and S6 defeat the 7-series, 6-series Gran Coupe, 5-series, M6 and M5.


PQ40PQ40 - 11/29/2012 11:40:27 AM
+2 Boost
I remember quite a few autoexpress tests where the 5 and 7 beat the A6/A8, and same with the 1 and 3 seris beating the A3 and 4 in numerous other tests..


PQ40PQ40 - 11/29/2012 11:53:22 AM
+1 Boost
More A1's!!! Wait until Mercedes and BMW offer premium compact models they will catch up and pull away from the pseudo-luxury VW brand. Exposing the fast tracked, overpriced polo as not being a premium car with is plastic and cloth interior.


GermanNutGermanNut - 11/29/2012 3:26:38 PM
-3 Boost
PQ40 uses the AutoExpress tests as his sources because they are the only website that uses running costs and efficiency as comparison points. No other major car magazine does that and Audi wins.

It's so funny to see BMW fanboys like PQ40 attack Audi for going downmarket when BMW (1-series and future i3 concept) and Mercedes-Benz (A-class and B-class) are guilty of the same thing.

It's even funnier to see PQ40 attack Audi for making a cheap interior in the A1 when BMWs have been routinely criticized for offering 'spartan' and 'bland' interiors that don't justify the car's premium price tag.

The lazy Audi designers are done with. Audi has indicated more differentiation in their sedan lineup along with a line of 'sporty' SUVs such as the Q2, Q4 and Q8.




PQ40PQ40 - 11/29/2012 4:03:20 PM
+3 Boost
It's so funny to see Audifanboys like Germanut attack BMW for not going down market Audi needs it to gain sales, and its sad Audi has to resort to this b/c it will force Mercedes and BMW to do the same just so they can compete with Audi trying to undercut them with cheap sales...So when you see Mercedes and BMW come out with Mini rivals you can thank VW/Audi for diluting the Luxury market.

But yet you post Autoexpress articles only when Audi wins..hmm. Also many comparison tests are subjective, and the winners are not consistently picked on the same criteria....sometimes its price, sometimes performance, other times economy. So bragging about one win meant little, especially when every 6 months a new car is on top until the latest greatest comes out.

A class, B class, 1 series, and i3 are all priced above the A1. A1 starting price is in the teens! i3 will start around 40K.



PQ40PQ40 - 11/29/2012 4:07:01 PM
+2 Boost
1 series, and A class compete with A3.


PQ40PQ40 - 11/29/2012 4:18:10 PM
+2 Boost
So the cost of running a car should be irrelevent? hahaha. I like your 15 year old logic, the one that goes to 60 the fastest should win. Too funny. Plus a lot of the Autoexpress test, Mercedes and BMW won be cause they are better to drive...The Audis are one dimentional, understeer, and numb steering. And im not a BMW fanboy, i like all brands except VW.


GermanNutGermanNut - 11/29/2012 8:51:28 PM
-1 Boost
The cost of running a car should be relevant, but AutoExpress places more emphasis on those figures than anyone else.

Audi, just like any company, is in business to make a profit. Audi, unlike BMW and MB, realizes that there is a need for a significantly lower-priced model from a premium car manufacturer. Audi is giving its customers more options. The A1 sells extremely well and is a very high-volume, low-margin product for Audi. As a result, Audi's revenues have increased significantly along with its sales.

You may call the A1 cheapening the brand, PQ40. Audi views the A1 as its entry into a tremendous growth segment of the market and a nice way to increase sales, revenue, and profitability.


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