Audi: Losing the Plot?

While GM and Ford continue their slow-motion fall from grace, Audi’s headed in the other direction. The German automaker’s U.S. sales are up, moving towards record levels. The company has a raft of new vehicles on dealers’ lots and more models on their way– from mid-market entry level models to the new TT roadster to the R8 supercar. Audi’s interiors are still the industry standard for design, fit and finish. They’re modifying their distribution system to increase customer choice and reduce dealer inventories. So is all well with Audi? Yes and no.

Continuing on the yes side, Audi is poised to introduce a range of diesel powered vehicles into the U.S. market. The move comes just in time to meet pent-up demand for high mileage vehicles capable of exploiting federal “clean diesel” regulations, and may include a headline grabbing, brand-burnishing diesel-powered sports car (the TT). At the same time, Audi has the fuel-efficient engines it needs to stay in the hunt for sales of luxury sports cars, hatchbacks, wagons and sedans.

Audi may also have discovered the “next big thing:” mid and full size hatchbacks. The American market has moved from SUV’s (with true off-road capabilities) to CUV’s (cars masquerading as SUV’s). The jump from CUV to hatchback is a logical progression (foreshadowed by the now discontinued Audi Allroad). Whether by luck or design, Audi’s ready. For model year ’09 / ’10, every model in Audi’s lineup will have a hatchback version, including their biggest model, the A8. Audi’s bread and butter A4 will be available as a sedan, wagon and hatchback. So what could go wrong?


Read Article

PlanoA4 - 8/21/2006 2:03:09 PM

+2 Boost

CarTrash- Bang on with your comments. If Audi keeps up the PR engine they can reap the rewards.

Concerning ALMS- Can you think of a better real life PR campaign than what is going on right now? Diesel burst onto the scene with snickers from the competition, only to devastate them with technologically superior power, reliability and economy. Plus in the face of numerous sanctions they never waver and continue to dominate. Audi needs to pounce on this as a major push. Those people will buy their diesels because they combine technology and economy and don’t require kid gloves to get results. They are a true departure from the stereotype.

Rupert - 8/21/2006 4:28:52 PM

+1 Boost

yes...i agree with the article.

audi could carve a proper niche for itself with sportbacks, it's slogan could be "the most practical sports car in the world" or similar.
and yes, what does audi stand for?

diesel will be a bonus for the brand, as long as it doesn't become known as "the brand that sells diesels", like lexus became known (in europe) as "the cheap one"

PlanoA4 - 8/21/2006 4:35:19 PM

+1 Boost

Rupert- I have heard that before, that Leuus is known as "the cheap one". Seems like the smoke and mirrors marketing over here simply don't translate across the pond. Why do you think that is so?

Rupert - 8/21/2006 6:30:19 PM

+2 Boost

we're used to paying too much money for not very much, so when lexus comes over with low prices, it's viewed that the only reason it's cheap is because it's not very good.
japanese brands never had the cachet of a german one here (no infiniti or acura here), and since saloons are deeply unfashionable here (in the same way the suvs stole from minivans in the us, suvs, mpvs, estates and all manner of things are stealing from saloons), only expensive, premiuim brand saloons sell, anything bigger than a 3 series without the right badge bombs.
no camry, no ford 500, nothing.
saloon versions of hatches sell even worse, like a corolla saloon doesn't exist here.
lexus, with once very dull styling, didn't stand out enough.
the rx and IS look good, but the sc stands out for the wrong reasons.
the thing is, nobody here (bar criminals and gangstas) aspires to drive a lexus, as they are simply so not cool. why?
imitation mercedes maybe, and then when m-b lost its cool, lexus fell.
and what does lexus stand for? reliability? thats it. no flair, no passion. a box. with wheels. a comfortable, reliable box, yes, but still just a box.
also, a well designed interior is now expeted, and is found on hondas, nissans, even french cars, so why pay more money for a lexus?
incidentally, the rx is always viewed as a nissan murano rival, not often as an x5 rival.
the ls has no competitiors.
the gs apparently does, but where i live (prime german saloon territory) i am yet to see one.
the sc is ugly and can't handle.
the IS is good, but not as good as a 3 series, or an a4.
often people will buy a used m-b instead of a lexus. i know i would.

chewy - 8/21/2006 7:51:44 PM

+1 Boost

Ask the competitions as the R10 puts down 959 pound-feet of torque on them while getting better fuel economy. Like Cartrash has said, read the CD review of the BMW 330d.

http://www.caranddriver.com/roadtests/11344/road-test-review-2006-bmw-330d.html

I95SPEEDINGTICKETS - 8/22/2006 4:55:40 AM

0 Boost

Bottom Line
Lexus went after the NA Luxury market and Conquered it

When they decide to go after the European market they will probably Conquer it too.

The new IS is a perfect example of what they can do when they decide to compete, the IS is better than the 3-series and the A4 luxury wise and in a few years the British & European consumer will see this, we are used to paying a lot in return for very little but Lexus is here to upset that balance, MB & BMW had something of a monopoly so could get away with stupid pricing, it seems Audi is eager to join them so that Leaves Lex as the underdog with the quality Product.

PlanoA4 - 8/22/2006 11:20:43 AM

+1 Boost

Will & 1955Speedingtickets - Don't count on the success of Lexus carrying over to other markets outside the US with out major changes. In the US you can slap a grill, and a badge on anything and with the proper marketing spin you get sales. Lexus strongest market appeal is reliability and build quality. While these are worthy traits, in other markets they are not as important overall.

In the US until recently Lexus demographics were indicating a strong lean to the same market as Cadillac. Older upper middle class individuals with limited income (retirees), Those individuals will value the high level of comfort and reliability that Lexus provides. Other markets want competence in dynamics as well, which is lacking in many of the models. (this is changing) Also hybrids are frowned on upon outside the US in general as ineffective and short term so Lexus now has started to add diesels to those markets. Once Lexus makes these changes they will grow.

The problem I feel is they have set a standard for image as grandpa’s car and have to change it to attract the younger clientele. If you doubt me, look at the demographics published about a month ago it was VERY clear the target they are attracting and were they need to go. As much as I hate to admit it, BMW probably does the best at attracting young individuals with large incomes and retaining them.

GermanNut - 8/22/2006 11:59:14 AM

+2 Boost

Plano you would be right in your statement. I'm young, have a high-powered income and BMW has attracted me away from Audi and my A4 with their upcoming 335i. If the 335i drives as good as some of the other BMWs I have, in terms of driving dynamics and braking not to mention 0-60 in 5.1 seconds....then BMW will most certainly retain me and for a longer amount of time that Audi has.

Rupert - 8/22/2006 4:27:47 PM

+1 Boost

plano i agree.

In the US you can slap a grill, and a badge on anything and with the proper marketing spin you get sales

cough cadillac and lincoln cough

synx - 8/23/2006 6:38:02 AM

+1 Boost

nothing is wrong with audi, it is mercedes who has lost the plot. the a-class, r-class and b-class all look alike. what categories of vehicles do they belong to. why do we need an suv/sedan/hatch/crossover thingy???

Rupert - 8/23/2006 1:31:14 PM

+1 Boost

bmw thinks we do, they're launching the v3, v5 and v7 to compete with the b class, r class and into a new supersized segment.

synx - 8/26/2006 1:03:31 AM

+1 Boost

i heard of the v3 and v5 but what is the v7??? the v3 and v5 just look like the same size as the 3-series and 5-series touring. is there a niche in the market for such cars???