Audi Q7 - Americans steer clear of SUV that was designed for them

Audi is selling more of its Q7 premium SUVs in Europe than in the US. That’s the opposite of the automaker’s expectations.

The German premium brand planned for half of Q7 sales to be in the US. But after four months on the market, only about 30 percent of Q7 production is heading to North America, said Ralph Weyler, Audi’s head of sales and marketing.

Weyler said Audi suffers in the US because of its low profile there.

“We have a lot of analysis that says we lack brand awareness,” Weyler said. “If you ask what a Lexus and BMW is in that market, the answer is clear.”

With its price starting at $40,000 (€31,000), the seven-seat Q7, Audi’s first SUV, is also being sold for significantly less in the US than in Europe. In Germany Q7 prices start at €48,900.

At the launch of the Q7 this summer, Johan de Nysschen, Audi of America executive vice president, said the seven-seat SUV was designed primarily for the US, where large sport-utilities are popular. But US demand for luxury SUVs is sharply down due to rising fuel costs.

Because of the Q7’s better European sales, Audi is avoiding exchange-rate losses associated with the weak dollar.

“The fact that it is doing so well in Europe is very positive for profitability,” Weyler said in an interview at the Paris auto show. “We are positively surprised.”

Unlike BMW with its X5 and Mercedes with its M class, Audi does not make the Q7 in the US, the largest market worldwide for such vehicles. Instead, it makes the SUV in parent Volkswagen group’s factory in Bratislava, Slovakia.
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AUDIMAN4 - 10/21/2006 6:18:15 AM

0 Boost

For some reason or another, Audi fails to connect with the American consumer--I'll never know the reason why, but I suppose it has something to do with the Audi corporate philosophy vs. American wants/needs/expectations in the luxury vehicles they buy.

There are are very distinct differences between American and European consumers, and somehow the Audi formula misses the mark here. It's something that can be worked on, but Audi will not abandon its philosophy simply to cater to Americans, who make up a very small percentage of annual sales.

AUDIMAN4 - 10/21/2006 6:20:04 AM

0 Boost

One way this issue could be remedied would be to drastically increase the amount of money spent on marketing and connecting with this unique American consumer. But Audi has yet to get serious about this.

AUDIMAN4 - 10/21/2006 6:30:28 AM

-1 Boost

Also what strikes me about Audi in the US is that while the brand may have a "low profile", it is still widely viewed as an equal to BMW in the minds of most consumers.

American college students and adults recognize the Four Rings, and always comment on what a nice car it is, yet when it comes time for them to buy a car, they'll likely choose a BMW or Lexus. This not based on the quality of the brand itself, but simply recognition/association.

Audi's got a LOT of work to do in the US.

BMW530i - 10/21/2006 6:45:45 AM

+1 Boost

Perhaps, in the eyes of the American public, the Q7 lacks something that the X5, ML or RX have? Who knows?

I personally like the Q7, but I'd never buy one or another SUV for that matter until they're offered with diesel engines here.

S4cabriofox - 10/21/2006 9:36:23 AM

+1 Boost

They're going to offer a Q7 3.0TDI here within the next year and a half, apparently. It's supposed to go like the 4.2 and get better mileage than the 3.6.

The Mercedes ML320 CDI/GL320 CDI/R320 CDI cars are coming out.

Wait, are those Blutecs or CDIs?

BMW530i - 10/21/2006 9:42:52 AM

+1 Boost

Good to hear about the Q7 3.0 TDI. I've heard good stuff about that engine. ;)

I think the those MB diesels are regular CDI's, but I am not sure. Someone correct me if I am wrong.

I know that the E320 CDI is a Bluetec though and it's awesome. Hopefully BMW and Audi will follow suit with diesels in their passenger cars.

kart1 - 10/21/2006 10:25:44 AM

+1 Boost

Yup, you're right they're Common-rail diesels. But I thought I read somewhere that Bluetech will be coming out in about 2-3 years.

S4cabriofox - 10/21/2006 9:19:46 AM

+1 Boost

I was seriously considering the Q7 to replace our RX330, but we've decided against another SUV.

But I did see a black one last night, parked. They're just very cool-looking cars. They don't look like anything else on the road.

And, I have been seeing more and more each day. I can imagine their sales going up more, just by word of mouth.

Autoegr525 - 10/21/2006 10:31:41 AM

0 Boost

Maybe it's because Audis cost as much as better cars? Or because they drive like volkswagens? Or because the Q7 is a behemoth that is disguised as a sports car and ends up looking like a bus?

johannas - 10/21/2006 10:57:50 AM

+2 Boost

Wow... I'm going to take a guess that Autoegr525 has never deiven a quattro, or a Q7 for that matter.

BMW530i - 10/21/2006 11:39:50 AM

0 Boost

Autoegr525 = TROLL

Mark - 10/23/2006 6:57:57 AM

+1 Boost

^ Agree

CarNut - 10/21/2006 11:32:19 AM

+2 Boost

Im glad its selling better in europe.... kinda makes it cooler

NARunner - 10/21/2006 12:09:04 PM

+1 Boost

is there any possibility that the American consumer is tired of the touareg/cayenne platform? Personally I like the Q7 and think it looks more unique than any other SUVs on the market, but I feel like to the typical american consumer, the Q7 just looks like an extended wheel base version of its touareg/cayenne counterparts, which have been around for what, 3 years now?

Remember, most american car buyers are morons...which is why we still see PT Cruisers on the road.

EL34 - 10/21/2006 12:31:09 PM

+1 Boost

The Audi Q7 will sell good here in Conservative South Orange County California.

Give it some time because I'm sure more Audi's are sold here than anywhere else in the United States of America.

audiot - 10/21/2006 12:34:42 PM

+1 Boost

People can't steer clear of a car they don't know about. The article is about low brand awareness in the USA.

The American consumer likely doesn't have the Q7 on their radar, so any suggestions as to why it isn't selling 200,000 units is moot. It is selling quite well for being an invisible car to most consumers.

If you're looking to bash the Q7, use the Detroit News article, because this one doesn't support that.

NYC45 - 10/21/2006 12:44:55 PM

+4 Boost

The Q7 is a great SUV. Most americans don't have a clue about good cars. Look at all the crap suvs GM and Ford sell, clear as water.

IamEvilHomer - 10/21/2006 12:49:38 PM

+2 Boost

the q7 is swlling well for us

the fact is that Audi is suprised how well it is selling in Europe

remember the gas issue we had in the usa but sales have been great for the last few weeks

IamEvilHomer - 10/21/2006 12:50:59 PM

+1 Boost

selling that is

Neverfollow - 10/21/2006 12:58:53 PM

+1 Boost

They are selling really well in Scottsdale AZ too.

Larry - 10/21/2006 1:22:04 PM

+1 Boost

i saw one yesterday, nice car looks like good engieering, the problem is there is a lot competiton, and audi is late to the market. this suv should have been here 7 to 8 years ago. but still it is progress.

EL34 - 10/21/2006 1:29:48 PM

+1 Boost

Really, 7 years agos?

The Mercedes R-Class is everywhere here in South Orange County, you know like Irvine, Cota De Caza,
Newport Beach, Dana Point and San Clemente.

BMW530i - 10/21/2006 1:57:55 PM

0 Boost

That's a pretty good observation, Larry. +1

IamEvilHomer - 10/22/2006 3:05:49 AM

+1 Boost

but late is ok and remember audi ownes the quattro

perfect car for the quattro and this car drives great.

there are great plans to keep the car hot. a great ofroad package / new engines next year etc

EL34 - 10/21/2006 2:28:04 PM

+1 Boost

The Audi Q7 is not going up against the previous X5 and M Class.

The Q7 is up against the new R-Class which is selling good around here.

S4cabriofox - 10/21/2006 3:00:41 PM

+1 Boost

No, the R is a van-like crossover while the Q7 is an SUV. Its closest competitor is the Mercedes-Benz GL-- they're only 0.2 inches apart in length.

BMW530i - 10/21/2006 3:32:51 PM

+1 Boost

And the Q7 and GL both look good. Tough and offroad capable. The latter of which matters to me when shopping for an SUV.

EL34 - 10/21/2006 4:07:37 PM

+2 Boost

S4cabriofox, just based on the look of this German auto a lot of people will consider the Q7 and the R-Class is what I mean.

I would own the Q7 in a heartbeat and I'll bet it handles really well for a big vehicle.

When I find the time I'll go test drive one.

RacerRX - 10/21/2006 3:44:11 PM

+1 Boost

I really haven't seen any major marketing (i.E TV ADs) in comparison to the compitition..The MB SUV commercials are on every 15 mins. If they had the same Ads as they did in Europe --I would have no doubt it would increase market share. Like the one for the S6 --how hard is it to take the European commerical and put on the American Airwaves. I just don't understand!

S4cabriofox - 10/21/2006 5:40:30 PM

+1 Boost

Well, Audi has tons of ads for the Q7 in magazines. Car magazines, for sure. But that's different, because only a small portion of the American population reads car magazines.

It would be much smarter for them to make TV ads- and I have seen quite a few for the Q7 on TV, and when the A8 came out. But they need more.

S4cabriofox - 10/21/2006 5:39:06 PM

+1 Boost

I've been seeing a lot more in Chicago in the last week or two. They look beautiful in almost every color, and they're truly original designs. I'm tired of the cliché RX/ML/X5 look, though the new X5 looks promising.

But the Q7 is really quite sleek on the road, especially in darker colors. It's not photogenic at all.

adoptgreyhounds - 10/21/2006 8:57:04 PM

+1 Boost

this is the problem in my area. All our Audi/Porsche dealer are joined at the hip. Most sales persons say the same thing. By the way mostly women are buying/diving Cayennes in Indiana anyone else notice this? I don't mind just curious.

S4cabriofox - 10/22/2006 3:30:11 PM

+1 Boost

"Think about it. For equal or less money, you can get a Porsche Cayenne instead of an Audi."

Have you ever optioned up a Porsche? A base Cayenne V6 can easily flirt with the $60K+ mark if you put in about 15% of the options on the Porsche website. When I was looking at a Cayenne S, I built one, and without even all the features she has now on her $47K RX330, it reached $70K.

Porsches are not for the value-minded. The Q7 is the best buy of the three in my book.

phaetonmeister - 10/21/2006 6:32:27 PM

-1 Boost

mbrules-
First of all, I happen to own a sample of your beloved product........a 2006 CLK 350, although it is a very nice vehicle the quality is by no means even close to any offering from VW/Audi. I have seen several Q7's on the highway here, and have asked a couple owners how they felt about their new SUV and ALL of them are over joyed. How you could post such rubbish on this blog is beyond normal human thought processes. Get over the fact that Audi is building quality vehicles. I promise it won't hurt and you might just sleep better at night.
PM

mbrules - 10/21/2006 9:13:31 PM

+1 Boost

PHAETONMEISTER - Firstly you make a ridiculous comment that the "MB CLK quality is by no means even close to any offering from VW/Audi". MB not close to VW, MB is not even competing with VW, they are way better than VW. Guess what, they tend to be better than AUDI as well. Whenever Mercedes design/market their cars they only have one compettor in mind BMW. They don't even consider Audi as serious competition. As for your comment that what I posted was RUBBISH, I picked up this story from Autoweek a very credible media site, linked to Autonews, quoting people from Audi. Where as your assertions are based on talking to a "COUPLE" of owners. But then again what would you know about quality & credibility, you are PHAETONmeister. PHAETON a disaster and a totally failed car from VW.

S4cabriofox - 10/22/2006 3:33:23 PM

+1 Boost

"Guess what, they tend to be better than AUDI as well."

Do you live under a rock? The only Mercedes on sale right now that has even comparable quality to its Audi competitor is the new S-Class! The C-Class is crap, the E may look good but its wood feels fake, the ML, GL and R feel cheap, and the SLK? Spare me.

And Mercedes not seeing Audi as a competitor? Excuse me for having knowledge of the outside world, but Audi is the third best-selling luxury company in the world... ONLY BEHIND MERCEDES. What an illogical comment.

S4cabriofox - 10/22/2006 3:34:03 PM

+1 Boost

"ONLY BEHIND MERCEDES" should read "ONLY BEHIND MERCEDES AND BMW".

Mark - 10/23/2006 7:02:17 AM

+1 Boost

Well it took for about half of the thread before we had the first punch thrown..... I smell a troll again.

EL34 - 10/21/2006 6:47:26 PM

0 Boost

Will just wait till youre seating at a redlight with a Aucra MDX in front and a Q7 and A4.

You'll see just how unoriginal the Honda MDX will be lookin'.

t_bone - 10/21/2006 8:19:23 PM

+2 Boost

I hope each new SUV to the market is a complete flop. But I've been hoping that for over ten years.

mbrules - 10/21/2006 9:15:14 PM

+1 Boost

PHAETONMEISTER - Firstly you make a ridiculous comment that the "MB CLK quality is by no means even close to any offering from VW/Audi". MB not close to VW, MB is not even competing with VW, they are way better than VW. Guess what, they tend to be better than AUDI as well. Whenever Mercedes design/market their cars they only have one compettor in mind BMW. They don't even consider Audi as serious competition. As for your comment that what I posted was RUBBISH, I picked up this story from Autoweek a very credible media site, linked to Autonews, quoting people from Audi. Where as your assertions are based on talking to a "COUPLE" of owners. But then again what would you know about quality & credibility, you are PHAETONmeister. PHAETON a disaster and a totally failed car from VW.

IamEvilHomer - 10/22/2006 2:50:00 AM

0 Boost

with close to a million sales and no suvs till now mb thinks about audi believe me

sewingmachine - 10/21/2006 9:30:31 PM

+1 Boost

i guess when u see alot of r class where u live, they are selling like hotcakes in america, lol. audi shoulda made a smaller version first, q7 is huge and looks like a minivan.

IamEvilHomer - 10/22/2006 3:03:54 AM

+1 Boost

the car fits a great market
people need big cars if they have a family and more then one kid and a dog, the q7 is great for that

buy a Q5 next year if you want a smaller one or get a car / we are selling more Q7s then A6s 3 to 1 and the A6 is everywere

brianlamar - 10/21/2006 10:13:58 PM

-2 Boost

I remember speaking with my uncles about cars and which cars they would buy and which cars they wouldn't. They purchase cars based on a company's history. I remember them telling me about more than one incident when audi's first came to america and read in the newspaper that audi's transmission would surge forward in the "park" position. So basically they wouldn't buy it because of the bad history audi has made while in america. Same thing with BMW's burning oil. So they all have Mercedes-Benz. Great history, very little problems. And none of them have had problems with any of their cars until my uncles 84 S420 SEL started leaking oil but who cared it never had any problems since then and purchased another s-class. Another uncle has two e-classes with no trouble and my mom has an slk with no problems. Old people remember what cars had trouble in the past and determine if the company has a good history. They all refer to BMW's as a poor mans Mercedes while Toyota's and Nissan's are the best all around cars. Audi needs the market that are in my family's age bracket and they're not too pleased with their history.

IamEvilHomer - 10/22/2006 2:52:38 AM

+1 Boost

they are idiots that was 30 years ago and 60 min came out with that hit peice they latter retracted but it was to late

Mark - 10/23/2006 7:08:01 AM

+1 Boost

Idiots or not, he does have a point. "Our" parents or those in the generation before us have hard-in-stone beliefs when I comes to cars.

My dad is one of them. He's owned MB, BMW, Audi, and countless other cars when we lived in Germany. Back then when Audi's quality wasn't what it is now he wasn't fond of them. He still has that outlook today because of his own thoughts. It doesn't make him a complete idiot, it's just that way of life he was brought up in. If something didn't work you didn't buy it again and wouldn't mostly ever again.

I don't discount my dad for his thoughts, I just let him think what he thinks. It's not going to alter my decision.

mbrules - 10/21/2006 10:24:08 PM

+1 Boost

SEWINGMACHINE - Agree, Audi should have made a smaller SUV. But their hands were tied as Volkswagen already has the Touareg. Audi Q7 is built in the same VW factory and on the same platform as the VW Touareg. If the Q7 had been the same size as Touareg then it would have been a VW with just an Audi badge. Hence to differentiate, they stretched the wheelbase and ended up with Q7. The vehicle they ended up with doesn't match up to the ML or the X5. The Q7 sales will prsumably, only get worse once the new X5 goes on sale.

IamEvilHomer - 10/22/2006 2:54:24 AM

+1 Boost

mb the vw had audi share 17 % components

the much larger audi is also the same weight

razzy23 - 10/21/2006 11:32:14 PM

-2 Boost

or maybe because everyone is waiting for the upcoming, should i say it or not??? X5!!!!!

IamEvilHomer - 10/22/2006 2:59:56 AM

+1 Boost

this article is was out of context

Audi Q7 sales are very hot in europe and more then they expectet. The american SUV market was off by over 45% when the Audi hit the streets. We are selling severl Q7s and it is the 2nd hottest seller behing the A4 (audi sells lots of A4s)

We sold almost 10 Q7s this weekend alone. The Q7 is very hot right now. Razzy why would they wait to drive a car that is designed to have the same features and dementions as the Q7? Some people will wait but the Q7 is selling well and the AMerican SUV market is taking off again. People need big cars and Audi makes the only German made suv anyway don't they?

brianlamar - 10/22/2006 3:58:54 AM

0 Boost

Ok you're calling my family idiots based off of their own opinion that was relevant to this topic. You need to check yourself. Don't do that because I have not disrespected you on this forum. Be careful with what you say. Ignorant fool.

IamEvilHomer - 10/22/2006 10:49:41 AM

0 Boost

ok they are uninformed

I95SPEEDINGTICKETS - 10/22/2006 10:50:34 AM

0 Boost

If your Folks refuse to consider an Audi because of some Rumours over 30 years ago about Transmission Problems then they are IDIOTS

Only IDIOTS have such ILLOGICAL ways of justifying things. MB has had a Plethora of problems in the last 8 years and yet they Still only remember Audi Rumours ?

"BMW a Poor man's MB" ?? How Retarded is that ? They probably still Fly the Confederate Flags outside their Homes.

brianlamar - 10/22/2006 11:48:01 AM

+2 Boost

Well being that i'm black, my family doesn't carry around a confederate flag. Please don't assume anything you don't know. And their not idiots they just like what they like and have their own opinions about their cars. No one has heritage such as Mercedes and thats what they buy. Stop being ignorant and respect others views.

I95SPEEDINGTICKETS - 10/22/2006 1:03:56 PM

0 Boost

HERITAGE............SCHMERITAGE

There have been too many debates on this site about Heritage & Prestige and all the other Excuses Snobs use when trying to Justify their Loyalty to any particular Brand

If your folks Like MB thats Fine (Absolutely Nothing Wrong With That)
But when you make comments like they shy away from Audi because of some percieved problem over 2 decades ago and that BMW is a Poor man's MB then the only conclusion would be that they are Irrational.

Anyway, I retract the Confederate Flag Statement

Live & Let Live: They have the rigt to Think what they want I Guess

brianlamar - 10/22/2006 4:18:46 PM

+1 Boost

Great Post! And I don't see anything wrong with your views. I was stating an opinion that most older people think when purchasing a car. They are loyal and look at history before making a buy. Toyota, Nissan and Mercedes have an incredible history. Thats the way they see it. If they want a truck they will buy a Dodge Ram or a Ford Pickup. Being that i'm not as old as they, I would purchase something other than what they would purchase, although I love Mercedes as well. I love the way Audi's look and I want an R8 just as much as the next man does. Luxury cars appeal to older buyers because MOST older buyers have money to purchase more expensive cars.

CarNut - 10/22/2006 5:46:55 AM

+2 Boost

Audi hit the bull's eye with the Q7!!
If they would have made the smaller SUV first, noone would buy it, because it wouldnt have anything to be based upon, and after the bigger (Q7) would have been introduced people would just say its an extended version of the smaller one.

And so far as i know the Merc GL is the only 3rd generation SUV out there beside the Q7

S4cabriofox - 10/22/2006 3:39:31 PM

+1 Boost

The Galendawagen is actually just the G-Class, and it's still on sale. GL and G are different cars.

S4cabriofox - 10/22/2006 8:30:06 PM

+1 Boost

Third generation crossover SUV. They're very different terms. It's not literally the third-generation version of the car for the brand-- it's among the third generation of luxury crossovers.

First generation: Lexus RX300, '98-'04 Mercedes ML, BMW X5, Acura MDX

Second generation: Lexus RX330/350/400h, Mercedes ML '05-present, Infiniti FX, Porsche Cayenne, VW Touareg, Lincoln Aviator, Range Rover Sport, Lexus GX470

Third generation: Audi Q7, Mercedes GL, new Acura MDX, new BMW X5

phaetonmeister - 10/22/2006 10:20:18 AM

+1 Boost

MB Rules-
Truth Hurts Eh??
PM

audiot - 10/22/2006 12:43:22 PM

+1 Boost

What's wrong with being a VW? If you can handle the reliability stuff, they make way more interesting cars than other companies. Audi's connection to VW is great for both companies.

S4cabriofox - 10/22/2006 3:41:16 PM

+1 Boost

Oh, I forgot about you. You're that logical worshipper.

And audiot- what reliability stuff? I haven't had problems with any of my four Audis.

Let me rephrase your comment, mromar:

"Good... Die yuppies Die"

audiot - 10/22/2006 8:24:50 PM

0 Boost

Reliability stuff? Oh... nothing.

610looper - 10/22/2006 2:47:37 PM

+1 Boost

How many Q7's should be sold by now, considering the v6 model with a lower asking price just came out? How many ML, GL, or R-class V8's are sold compared to their V6 models?

KeyserSoze - 10/22/2006 6:10:24 PM

0 Boost

Toyota land cruiser is king! been around for long and has a global presence and its legendary. but no the german fans like arguing about who has the biggest and fastest, toyota has been there!

S4cabriofox - 10/22/2006 8:32:17 PM

+1 Boost

I beg to differ. The Range Rover is obviously the most opulent, best-looking, and most storied SUV on the road. It is simply the best SUV on the market. There are arguments against that, such as reliability, but that barely puts a dent in its otherwise immaculate pedigree.

brianlamar - 10/22/2006 7:19:37 PM

+2 Boost

I still think the Range Rover Sport is the best looking SUV in its class

S4cabriofox - 10/22/2006 8:30:35 PM

+1 Boost

As do I. Range Rovers in general are stunning cars.

chewy - 10/23/2006 2:11:19 AM

+1 Boost

Well, it has sold fairly well, not awesome but not poor. BTW, the Porsche Cayenne (up to about 120,000 dollars) share more with the VW Touareg than the Audi Q7 does with the Touareg.

Mark - 10/23/2006 7:13:02 AM

+1 Boost

Went to dinner last night in Crystal City and saw one in the parking garage. It was a slow night so not many other cars in there. That definately caught my eye as I walked past it and for a split second though how oddly it was shaped...but that's only becuase it is such a radical design.

They may be late to the fight, but they aren't out yet.

AmazingBimmer - 10/23/2006 7:43:53 AM

0 Boost

this was an underwhelming car from a largely low end engineerign company. We in america are very discerning customers, and dont buy substandard products which is what vw/audi are (in this segment). this will be the same fate of the TT, the current (yuck) a6 and boxy a4. engjoy the le,ans race, which is something that only audi cares about. focus on the most important cars, in the most important market foolish ones!!

I95SPEEDINGTICKETS - 10/23/2006 6:19:19 PM

+1 Boost

My God!!
You are more Crazy Than Logical

"We in america are very discerning customers, and dont buy substandard products which is what vw/audi are (in this segment)."

You must be on CRACK.

Maybe you did not know this but half of the Trash sold to you americans over there do not make the cut over here and most of what we have are highly sought after over there, So whom would you think were more discerning ??

Considering then that we Europeans consider Audi right on Par with MB & BMW, how could you come up with your nonsensical conclusion ?

BLOODY CHEEK !!!!!!

KeyserSoze - 10/23/2006 10:57:59 AM

+1 Boost

but how many range rovers have such a global presence like the land cruiser go to africa, mid east and some of the roughest terrains in the world you see more cruisers than rovers

brianlamar - 10/23/2006 12:11:18 PM

+1 Boost

I love land cruisers too. I think their the best off roaders, along with Land Rover. But the Range Rover Sport still looks the best

AmazingBimmer - 10/23/2006 1:21:59 PM

+1 Boost

i like rangerovers and landcruisers.

GermanNut - 10/24/2006 9:52:53 AM

+1 Boost

You are a Logical's cock loving little troll. Face it, Audi sells more cars world-wide than Lexus.

The R8 will smoke any M6 or M3 CSL you can dream up on the Ring, in a straight line, in the braking distance in the slalom.

Oh yeah..........IN THE PRICE TOO.

brianlamar - 10/24/2006 12:11:16 PM

+1 Boost

Although are probably correct, please don't post any assumed performance credits to a car that has not been tested yet.