Incoming Audi boss Rupert Stadler is taking on an enterprise, which seemly continues to run from success to success with each year. Even with large investments in new upcoming models Audi will go over the 10% mark in capital net yield this year. This is the second year in a row that Audi has surpassed the 9% margin that parent VW expects from the premium division. The projected rise in profit margins are expected to grow further from there.
By comparison Analyst Arndt Ellinghorst of Dresdner, estimates BMW currently is expecting a 11% margin without the same extensive expenditure rates for new models. Oddly enough, the relatively small presence of Audi in the US has work to their advantage by lessening the impact of the weak dollar. Audi will also have a easier time achieving record profitability due to the fact they can leverage parent company VW resources and development costs. Something BMW as an independent will have at a disadvantage for the foreseeable future..
Audi is global sales are expected to exceed 1 million units in 2008 and climb to over 1.4 million by 2015.
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