Audi Looking For Image Boost With Higher Sales Of Premium Models

 

2011 Audi A8

In Europe Audi is one of the leading luxury brands but in the U.S. its sales are still lagging behind rivals like Mercedes-Benz, BMW and Lexus. Last year Audi sold just 82,716 vehicles in the U.S. while its rivals managed to rack up more than double that figure.

In an effort to catch up as well as take the brand more upmarket, Audi will be focusing on higher sales of its premium sedan models like the A6, new A8 and the upcoming A7 four-door coupe.

Speaking with Automotive News, Audi’s U.S. chief Johan de Nysschen said he expects sales of these three models to account for 25 percent of the brand’s total U.S. volume within the next five years. Together, the A8 and A6 represented about 10 percent of Audi's volume last year.

The A4 will still make up the bulk of sales--approximately 40 percent, according to de Nysschen. However, if promoted better and sold to a greater portion of affluent buyers, the A6, A7 and A8 could act as halo models and help draw more people to the brand, he explained.

The new strategy will kick off with the 2011 Audi A8, which debuts in the middle of the year. Audi is expecting sales of this model to reach up to 4,500 units per year, up from the 1,463 units for the outgoing model sold in the U.S. last year.

The A7 will follow later in the year following a world debut at next month’s 2010 Geneva Motor Show and a brand new A6 is scheduled to arrive in 2012.

[Automotive News, sub req’d]





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Comments (6)
  1. Interesting that they do not focus on the entry-level volume sellers ... that is what sells the most of the other luxury brands.
     
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  2. Prestige and profit margins come with the top end vehicles, not the lower end models. The margin on an A8 may be as high as $10,000 - $12,000 whereas on an A3 or A4 it may be only $800 - $2,500.
     
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  3. I think one thing Audi should work on is their packaging and leasing. I've looked at Audis a few times, and they always lose to BMW when it comes to lease rates and how they package their cars.
    BMW offers a lot of standalone features that you may get separately or in a package, Audi typically does not, which usually makes the MSRP higher than one would like
     
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  4. The A3 can option out only $2000-3000 less than a similiarly equipped A4. Even less for A4 if you give up a couple options.
    The A1 will get a lot of rollout media w/ spokesperson Justin Timberlake. They will focus on the bigger ones right up to the A1 rollout.
    I love Audi's, but they seem to be a little media hungry lately with all there talk of "we're gonna be bigger". I think their message is becoming a little cloudy. Too much talk of battling BMW and Merc. I hope they stay on track with the engineering side of things.
     
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  5. Audi cars are fantastic. Maybe I’m the greatest fan of them, but really noticed that the price of A4 is too high, I can compare it with A5 and Q5, which models are actually much higher class that A4.
     
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  6. r4 you do realize that the A5 is based on the A4 and is just a coupe version of the A4, so why would you compare the two? Anyways I while it is good to sell a bit higher number of higher end vehicles, it seems getting more customers with other models like the A4 would be better.
     
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