General Motors Channels Its Inner Gollum: Hangs...
BMW: Audi is not a threat

BMW: Audi is not a threat

Viknesh Vijayenthiran June 14th, 2007 Viknesh Vijayenthiran By Viknesh Vijayenthiran Author June 14th, 2007
  • Articles Contributed: 3138
  • Comments Posted: 0
  • Leaderboard Rank: N/A

December 31st, 1969 Audi has certainly lifted its game over the past five years, releasing more models, increasing its market share and picking up a horde of quality gongs, so you’d think fellow German luxury brand BMW would be feeling the heat. Not so, says BMW Group Australia managing director Guenther Seemann, speaking recently with GoAuto, mainly because it doesn’t build RWD cars. Seemann explains that BMW has only two main competitors, “one comes from Stuttgart and the other comes from Japan”. He also suggested that Audi’s recent sales increase was spurred by heavy discounting and that this tactic will eventually harm the brand and reduce customer loyalty. The market seems to disagree. Audi sales are up all over the globe and this has surely come at the expense of numerous BMW sales. Seemann admits Audi is doing well, but believes it hasn’t earned the trust of its customers that a premium brand commands. “It took us many years to build the trust in our customer. It takes many years to achieve what we always wanted to achieve, to become number one or number two in the world.” It appears that, in the eyes of BMW, Audi's four rings have a long way to go until it becomes a genuine rival to the blue and white propeller.
BMW: Audi is not a threat

BMW: Audi is not a threat

Enlarge Photo

Audi has certainly lifted its game over the past five years, releasing more models, increasing its market share and picking up a horde of quality gongs, so you’d think fellow German luxury brand BMW would be feeling the heat. Not so, says BMW Group Australia managing director Guenther Seemann, speaking recently with GoAuto, mainly because it doesn’t build RWD cars.

Seemann explains that BMW has only two main competitors, “one comes from Stuttgart and the other comes from Japan”. He also suggested that Audi’s recent sales increase was spurred by heavy discounting and that this tactic will eventually harm the brand and reduce customer loyalty.

The market seems to disagree. Audi sales are up all over the globe and this has surely come at the expense of numerous BMW sales. Seemann admits Audi is doing well, but believes it hasn’t earned the trust of its customers that a premium brand commands.

“It took us many years to build the trust in our customer. It takes many years to achieve what we always wanted to achieve, to become number one or number two in the world.” It appears that, in the eyes of BMW, Audi's four rings have a long way to go until it becomes a genuine rival to the blue and white propeller.

Tags: Industry

Posted in: BMW, News


Comments (17 total)

Meet the top commenters on the Leaderboard

  1. By Jim #1, Posted: 6/14/2007

    there is a difference between "BMW" and "BMW Australia"

    and i don't know what it is like there.. but he sounds c0cky.

  2. By biturbo #2, Posted: 6/14/2007

    Makes me laugh :) :)

    What is BMW's response to the R8?
    Pork heavy cars??

    Image matters. Audi has got game with the R8.

  3. By tum #3, Posted: 6/14/2007

    that guy is just pathetic

  4. By rs4john #4, Posted: 6/14/2007

    Yea Right, they are getting a little rattled.

  5. By admin #5, Posted: 6/14/2007

    Just because the statement comes from a BMW rep in Australia, it doesn’t mean it’s untrue for the rest of BMW. Besides, Guenther Seemann is from BMW in Germany and only moved to Australia recently.

  6. By HECTOR #6, Posted: 6/14/2007

    It used to be when I thought of BMW I thought *M3* and *that 740iL seems built around the wheels - I bet it handles like a dream*.

    Now when I think of BMW I think *overpriced options*, *ye olde steering column mounted shifter* and *Chris "Flame Surface" Bangle*.

    If I had $40K burning a hole in my pocket I'd be at the Infinity dealership picking up a G37 and not at BMW's picking a 3 series, though we all have to admit that the new 335 coupe is a homerun.

  7. By Damien #7, Posted: 6/14/2007

    BMW would have to be seriously kidding themselves if they believed Audi wasn't threat. It sounds like someone is in complete denial.

    But props to BMW for introducing relevent technologies in its cars, like all the fuel saving features across the board and not just some gay looking car like the Prius. The current range is already brilliant (maybe not the styling), but the next gen models like the new 5 and 7 will be a killer.

  8. By Alan #8, Posted: 6/20/2007

    Seemann is definitely concerned or he wouldn't have made the nonsense statement that he made. Audi has a history going back over 100 years. BMW dates back to 1928, which is 79 years. Lexus is mentioned with a history of only 8 years (1999). Obviously Seemann should have his foot in his mouth as he doesn't know the facts of the his competition nor his own company that he works for. Regarding RWD, that has no relevance to a Premium car. There are plenty of cars that are AWD including Porsche's, Lamborghini's, and Bugattis.

  9. By Ryan #9, Posted: 6/22/2007

    it would appear that RWD does not directly indicate a premium brand but if you look at the reason AUDI use AWD you will note that the quatro package is influenced directly by the cost cutting FWD layout that AUDI uses in all its cars. FWD is NOT a fantastic packaging tool its a cost cutting tool ie. to decrease the cost of developing and manufacturing a car. At the expense of what you might ask? DYNAMICS! FWD is useless in a luxury performance car but perfect for a low cost hatch. So Audi claim to be producing premium cars? No they are selling Premium image to folk graduating out of budget hatches! Brand loyalty is a winner for Audi, I hope it lasts for them tho I don’t envy their support base 1 bit.

  10. By Justin #10, Posted: 6/22/2007

    Perhaps Audi has made a decision that most low-end buyers don\'t care about dynamics so much and that\'s why you see them spening more money on building better interiors. The rear-biased AWD system has proven its worth in sports cars.

  11. By Dirty #11, Posted: 6/23/2007

    Wow, Ryan and Justin, you guys have it all figured out. Lets be honest, RWD and FWD both have their pluses and minuses and that is fact. Audi's history comes from being almost phased completly out of the books until VW purchased them. They had to share technology and such for many years due to their parent companies rule. But they don't act as if the FWD system is the way, Quattro is their signature and it will outperform both FWD and RWD cars in all conditions. As they continue to grow they continue to distance themselves in many ways from their parent company. You think it costs Lexus much more money to develop RWD cars? Not really. It only costs much more to do up front but down the line it doesn't matter. Just because you make a rear drive car does not make it premium by any means or we should all consider mustangs, camaros and dodge magnums to be premium brands. So this my friends is not a true qualifier.

  12. By Scott #12, Posted: 6/23/2007

    I am a former 3 series fan, switched over to the S4. WOW. Best car, by far, that I have ever owned.
    The 3 series is ruined.

  13. By Turboner #13, Posted: 6/27/2007

    BMW is all Bangled up, and don't know what to do other than hate the player. Audi doesn't use a FWD-based system, otherwise the engine in my wife's A6 Biturbo wouldn't be mounted longitudinally, or put power down through a torsen center diff, which can bias it either way it needs to. Their interiors are sweet, they don't shove idrive up your ass, and for the time being, you can pick up a used one at half the cost of a comparable (or less than) BMW. That is all.

  14. By David #14, Posted: 6/27/2007

    It's that very attitude that 'drives' me away from ever owning a BMW. I almost purchased an Z4 M Coupe last year. Screw them.

    Having pride is one thing- trouncing another rival's achievments based on their drivetrain is a pathetic. Hey BMW, if AWD sucks then why the sudden re-release of all the 'Xi' variants? Hmm...

    I'll take an Audi RS4 or the upcoming RS5 over anything BMW has to offer. Audi has it covered when combining sportiness, luxury, safety, and aesthetic detail.

  15. By sonny reyes #15, Posted: 6/28/2007

    I don't belong to car any Both Audi and BMW are great cars that are maintaining their respect among car enthusiasts. Mercedez Benz, by all means, are lagging behind in style, and quality. Its so sad that MBenz is losing.

  16. By car fan #16, Posted: 10/10/2007

    Dear Ryan, the fact that quattro works with a FWD platform does not make it a FWD. Also, the fact that FWD is cheaper than RWD does not automatically make quattro AWD cheap. If you don't like Audi's just say so. There is no governing rule saying that luxury cars must have RWD. As a matter of fact RWD is a compromise and should rank above FWD but below AWD. AWD performs anytime anywhere, unlike RWD which needs a perfect sunny day on perfect road conditions to work.
    To say that Audi is no threat to BMW only says how much arrogance has blinded some BMW executives and what their brand image really is about. Sad.

  17. By bobbysixty #17, Posted: 8/27/2008

    The only reason the M3 is a V8 with such a high revving engine is because of the RS4. Who do you think you're fooling with such stupid comments

Post a Comment

Post anonymously
Sign In |
will stay private
your 'posted by' name will link to the URL

More from MotorAuthority

More from High Gear Media