Audi Q7 - Americans steer clear of SUV that was designed for them
mbrules submitted on 10/21/2006 Official Bell & Ross Timestamp: 2:10:53 AM
89 user comments | Category: New Cars | Source: | SOURCE: www.autoweek.com
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.
Read Article