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By DIANA T. KURYLKO | AUTOMOTIVE NEWS

AutoWeek | Published 08/24/06, 8:30 am et

Despite soaring gasoline prices and slumping sales of large SUVs, Audi's new seven-seat Q7 is proving there's still demand for a luxury model.

Key selling points are the more carlike ride and an additional 12 inches in length compared with the Q7's platform-mates, the Porsche Cayenne and Volkswagen Touareg.

The Q7 went on sale in mid-June. Through July, Audi has sold 1,900 Q7s. It has orders for 9,900. That's more than what Audi's top U.S. executive had predicted would sell.

Johan de Nysschen, who heads Audi of America, anticipated sales of 1,200 a month this year and about 20,000 units annually by 2008. "We have no experience in this segment," de Nysschen said earlier this year at the launch of the Q7, which was designed primarily for the United States.

Porsche sold only 13,607 Cayennes last year in the United States -- the vehicle's third year of sales.



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