GermanNut
GermanNut
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Tags: Audi, future, RS, BMW, Mercedes, A4, A8, RS6, R8, RS4

Tag Links: Audi, future, RS, BMW, Mercedes, A4, A8, RS6, R8, RS4

Audi's goal to become leading premium manufacturer by 2015....fact or fiction?
We all know Audi has long been regarded as the "other" German brand of the big three. BMW and Mercedes are the well known nameplates in the United States. However, take a trip over to Europe and what do you see? Audi is outselling BMW in Germany. Audi's sales, profits and other key financial numbers have all been rocketing up.

Audi's ability to offer smaller engines combined with their increased attention to detail has made the brand highly sought after in Europe. Higher prices as of late as witnessed with the A5 starting at $40K, the new A4 expected to start at the same prices as a Mercedes C-class, the RS6 likely to be north of $95K and the R8 at $110K means Audi buyers are not the ones who can't afford the BMW or Mercedes.

We all know Audi's sales in the United States are a disaster. Lexus outsells Audi by more than 300,000 cars annually and BMW also makes a mockery out of Audi's sales in the U.S.

However, things might be changing in the near future. China is expected to become the world's largest car market by 2015. In China, Audi is clearly the best selling premium luxury brand well ahead of BMW and Mercedes in sales.

Audi has posted their 11th consecutive sales increase in 2006 and is forecasted to sell roughly 1 million cars in 2008. Audi has packed their new cars such as the A4 full of technology, improved the reliability immensely and they even have plans to ramp up production of their RS models.

The RS4 was a revelation for high-performance Audis. The R8 is truly Audi's ultimate execution as it has taken down Porsche's iconic 911 in over 6 different comparison tests. With the RS6 loaded with 580 horsepower and 479 lb/ft of torque and an RS5 along with 350 horsepower TT-RS waiting for confirmation from Audi bosses...Audi is jumping head first into the high-performance stakes. If the RS4 and especially R8 are any indication, Audi will be making quite a splash in the high-performance arena.

In the wings is a Mercedes CLS competitor dubbed the A7 and a smaller version of the Q7 named the Q5 which will be set to compete with the BMW X3.

With a great following in Europe and a strongold on the Chinese market combined with Audi's plans to offer more than just one RS model at a time within the next three years do you think Audi's goals to become the world's leading premium manufactuer by 2015 are going to be a fact or just fiction?



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LarryLarry - 9/16/2007 11:49:17 PM
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with the audi commitment to building great cars , they will among the names in the top tier of the luxury market, in that group 2015 BMW, Mercedes, Audi, Lexus, maybe cadillac, infinti. However with BMW, Mercedes, Audi, selling 1.5 million I think having a more exlusive brand uncommon on the streets like Bentley, Aston Martin, Maserati, Rolls Royce , Ferrari etc. will be more special.

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GermanNutGermanNut - 9/17/2007 12:24:41 AM
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Audi is clearly capable of building a quality high-performance sportscar. The R8, has actually defeated the Porsche 911 and other competitors such as the Aston Martin V8 Vantage, BMW M6, Jaguar XKR, Corvette Z06, Dodge Viper in 9 comparison tests:

There is going to be in addition to the fabulous RS4 and the absolutely brilliant R8, an RS5, TT-RS, R8 with V10 and an A7 Mercedes CLS competitor.

Looks like Audi is going to be firmly cementing itself into the top-tier and if the sales trend and growth continues, it will be outselling Mercedes just like BMW within the next 3 years.

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LexusLexus - 9/17/2007 1:17:33 AM
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I think it is possible that Audi will accomplished that goal with 5 or 6 years from now. Look at all the new models they are coming with, A5, RS5, A6, RS6, new TT coupe, Audi R8 and Audi R8 V10.

If Hyundai has done so well with their poor quality vechicles, than Audi being a superior brands can definitely succeed.

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LarryLarry - 9/17/2007 2:39:04 AM
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Germanut i can't imagine you buying a 335i with so many daily audi post about the same topics, so with Audi in your mind how could not support the Audi cause and buy another Audi. First you boast Audi is outselling MB this, now it is three years?

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GermanNutGermanNut - 9/17/2007 9:01:33 PM
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Believe it Larry. I do have a 335i coming and my family and I have had a rich history with BMW and Mercedes-Benz.

I can't sit here and see a brand that is so capable in their engineering as we see with the R8 routinely defeating the Porsche 911 icon, get hit with such negative comments.

I agree BMW is the leader. Why do you think we have had so many of them?????

However, Audi is a brand on the move and to discount their engineering capabilities after seeing what the R8 has done, is simply dumb.


david989david989 - 9/17/2007 3:02:47 AM
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Fact is that poor quality cannot win over customers. This is where Lexus comes in with its superior reliability and customer service. Audi has no real image. They're based of Volkswagens and in their natural state are FWD. Very pathetic. There is no excuse for creating FWD luxury cars and then adding AWD to make them more prestigeous.

Houston Cutie baby post your Lexus facts!

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LemantechLemantech - 9/17/2007 7:24:17 AM
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yeah, okay let houston ugly do it because you dont know jack about cars.


amazinBimmeramazinBimmer - 9/17/2007 7:23:37 AM
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Having studied the global auto market, it is predicted that audi may grow slightly faster than BMW/Benz, but it will not catch either anytime soon, if at all. German Nut, keep dreaming, but you constantly underestimate the product design/ technology superiority of BMW/Benz. they are not sitting still with a new 7, 5, m, x6, v5,1 series, z9 in the wings and with Bnez about to unveil the new E (new c just debuted), ML, A/B cars. Our studies in germany (for the rest of the worl) predict that audi will be a player in china/ india due ot mass market roots and VW connection but at significant price points lower than the big boys. They will continue to lose ground in the US and marginally compete in Europe because of the strong Euro and audi not having any US factories. But german nut, you are amazing, posting this crap as if its a true story... keep selling those cars.. how is the lexus business these days?

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MeanVulcanMeanVulcan - 9/17/2007 11:25:02 AM
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There is no amount of study or experience that can predict what will happen in 5 years, much less 10. Auto sales have a lot to do with brand image, technology, reliability and pricing. But it also has to do with emotion. Audi has improved tremendously in every single category... technology, reliability, styling, competition, brand image and their profits are skyrocketing.

BMW has been struggling to reinvent its image after the Bangle era. They have admitted they need to update its models more frequently because customers are not happy. They have deviated from their core values and more customers are unhappy and leaving.

MB, aside from their great CLS design, has not made much of a statement other than its push for alternative fuels. Not nearly as much noise as Audi.

In the competition arena, Audi has clearly made a statement for many years in Le Mans, SCCA, ALMS, DTM. MB on the other hand has zero presence in Le Mans, SCCA, ALMS and is often beaten by Audi in DTM even though they show up with more cars (at least they show up...unlike BMW). Not to mention the fiaso with their McLaren F1 Team. Nothing but bad news.

BMW in sports... they get beaten by Audi (not to mention Mazda and Acura) in SCCA TC and have not much else to show for. Audi only looses to MAzda/Acura due to those teams running more cars, because Audi has its shares of 1st places. Their (BMWs) F1 effort is lame at best (a far number 3 or 4 to Ferrari, McLaren and Renault).

Summarizing, Audi has much greater momentum than both MB and BMW in every category. If you know anything about the automotive market, it is positive momentum that maintains sales up for many years after the fact. Its the customer perception that is hard to change once a long term trend has been established.

Audi will outsell BMW and MB in 10yrs or less. I'll be glad to contribute more (already own one Audi) when I trade in my FX for a Q5.


GermanNutGermanNut - 9/17/2007 9:15:10 AM
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With China becoming the largest auto-market in the world by 2015, Audi clearly dominates the chinese market and therefore will show a larger sales increase year after year when compared to Mercedes-Benz and BMW.

amazinBimmer obviously missed the memo that read Audi is expanding its lineup from 22 models to over 40 within the next 5 years. The new A4 was just released, the A5 has come out. Soon there will be a redesigned A6, a new A7, a Q5 to compliment the Q7 and a high-performance TT.

Audi will no longer buid one RS model at a time. The RS offerings will greatly expand. There is already an amazing RS4, a jaw-dropping R8, soon there will be an RS6, RS5, TT-RS.

amazinBimmer fails to realize how sluggish Mercedes sales have been since their disastrous move to combine with Chrysler. Audi sales are about to break the million mark either this year or next and Mercedes is staying still at the 1.1 million mark for the next year or two.




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DaHarderDaHarder - 9/17/2007 11:08:48 AM
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Nice thought, but...

As long as there is ANY parts sharing with VW's lower end vehicles (Rabbit/Golf/Jetta/Bora), and anything in their lineup utilizing FWD, they'll remain a premium brand also-ran.

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M53RM53R - 9/17/2007 4:33:50 PMView My AgentSpace
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It wont do anything to the M5, which is also getting an update soon.... But yes I do agree with the rest of what you said.

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AUTO_UNIONAUTO_UNION - 9/17/2007 4:32:33 PM
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Porsche also uses VW parts and they have far more prestige than BMW. Didn't BMW create an engine with Peugeot?

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SteveTSteveT - 9/20/2007 10:28:50 PM
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The Audi dealer network STINKS! The factory not only doesn't seek feedback from their customer base, they insulate themselves from it. The MMI system is overly complicated and the navigation system is a laugh. Although it gets high marks from all the car mags for ergonomics, it's really a nightmare. hey obviously haven't lived with one long enough to see all of the ergonomic awkward design flaws. I own my first and last A8.Back to Lexus.

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M53RM53R - 9/23/2007 8:16:24 AMView My AgentSpace
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misguided BMW fanboy? I think you are the misguided Audi fanboy. RWD > AWD, in the fun to drive factor.

Like it or not the M3 is faster than the RS4 overall, and the RS5 isnt even out yet.

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TheGeniusTheGenius - 9/21/2007 12:29:11 AM
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SteveT, I doubt that you really own an A8 because you don't sound like the typical A8 owner. You sound like someone who can't walk and eat candy at the same time. My 5 year old son can navigate the MMI menu, and can operate the Nav, CD and Radio menus (albeit on a basic level which is all you need 98% of the time anyway), and he picked that up just from watching me and once when I carried him on my lap when he wanted to try it out. Maybe I should send him over to teach you how it works. Even the most advanced functions are intuitive.
About the dealer, which state do you live in and which dealer? I've attended events during which my opinion was solicited, and just last week I sent in a questionnaire soliciting inputs about their current Nav system. But then again maybe your dealer put you on the "do not call for input list" My guess is this happened when they saw you stop to finish eating your candy while walking into the showroom.

Anyway, the title of the post seems to imply sales so lets look at some numbers.
Germanut, using approx. sales and current growth, its a fact!!!! In fact, projections are more like 2013. Here's my rough calc, and note that I added a 1 or 2% increases to account for growth due to new models for all three, but please run updated numbers if you have up to date sales data, but I ran different scenarios and the story is the same: At current growth rates, BMW and Benz are toast!!! See below


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TheGeniusTheGenius - 9/21/2007 12:46:52 AM
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All, Approximate Sales and growth rates for the "real" three are below (please adjust these figures in your calculations if you have 2007 numbers, but this will give you a better picture than just talking about new models etc..the bottom line is the sales the new or existing models translate to):
BMW = 1.4Mill (5%)
MB, 1.25Mill (7%)
Audi 1MM (13%).
X=Sales, G= growth rate.
X+(X*G)= year on year incease in sales.
BMW's total sales will equal AUDI total sales when
1.4MM +(1.4MM*0.05X)= 1Mill+(1Mill*.13X)
Adjusting for compounded growth, in 5 years Audi will eclipse BMW and Benz at depicted growth rates

Numbers follow
YEAR BMW AUDI Benz
2007 1400000 1000000 1250000
2008 1470000 1130000 1337500
2009 1543500 1276900 1431125
2010 1620675 1442897 1531304
2011 1701709 1630474 1638495
2012 1786794 1842435 1753190

Note that if BMW can grow quicker or if Audi doesn't continue to grow quicker than BMW and Benz as is currently, this will not happen. Honestly, with the momentum Audi has, BMW has to come up with more hits like the Mini to stay in contention. Audi already rules in Germany (in both sales, awards, and prestige), and its no.1 in China which is the fastest growing luxury market. Can you believe that Audi sold a few more more A6s in China than Toyota sold Camry's last year. Think about it for a second.
Run different scenarios that change the numbers and BMW's dead may take longer, but unless any of the growth rates change appreciably, my money is on Audi.
Will be interesting to also project Lexus which has half of Audi's sales, but is growing in the higher teens. Although growth is likely to slow from theose rates because the US which is close to 80% of Lexus's total sales may not be able to sustain growth at those levels indefinitely. Who knows, but it will be fun either way.


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JTWJJTWJ - 9/21/2007 9:21:53 AM
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SteveT, ARE YOU KIDDING ME?!?! You are going from an A8 backwards to a Lexus?!?! Dude, you are the FIRST person I have ever heard to say anything negative about an A8. I have talked to a number of A8 owners and every last one of them think the world of their cars and the Audi network. My next vehicle will definitely be an A8.

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TheGeniusTheGenius - 9/21/2007 8:44:46 PM
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I seriously doubt that he really has one. Maybe he can share which functions he's struggling with...

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