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BMW Overwhelmed?: Audi Set To Blow Away BMW in Profitability per Unit for 2006,

Agent009 submitted on 12/28/2006 Official Bell & Ross Timestamp: 2:10:56 PM

54 user comments | Category: Misc News | Source: | SOURCE: www.autonews.com

Tag Link: Audi BMW

Audi's return on capital in 2006 is expected to be 13 percent, the Financial Times Deutschland reported, quoting sources close to Audi's supervisory board.

The newspaper, in an article to be published on Thursday, Dec. 28, said sales at Audi were also expected to be strong this year.

Audi CEO Rupert Stadler had said earlier this year, when he was CFO, that the company was on its way to achieving a return on investment of more than 10 percent in the near future.

Audi has said it will deliver 900,000 vehicles worldwide this year, its 11th year of record deliveries.

As reported earlier this month by AutoSpies, BMW was expecting a 11% return for 2006. At this time that figure is not expected to change.

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BMW Overwhelmed?: Audi Set To Blow Away BMW in Profitability per Unit for 2006,

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Guffadoodles, I nominate you to be AutoSpies car crackpot.
— EL34 (View Profile)

Posted on 12/28/2006 3:03:31 PM | reply to this comment | Votes: 1

Audi significantly more profitable than BMW?
— chewy (View Profile)

Posted on 12/28/2006 2:38:39 PM | reply to this comment | Votes: -2

BMWreplica > Guffadoodles mother.

...Oh yeah, Kia Spectra > Mustage GT.
— BMWreplicat (View Profile)

Posted on 12/28/2006 3:04:38 PM | reply to this comment | Votes: -4

LexusDude / SexyLexusDude and whoever else he is seems to be back in the shape of a Guffadoodles...
— Bill (View Profile)

Posted on 12/28/2006 3:06:28 PM | reply to this comment | Votes: -1

profitability per unit and this article, which was posted earlier this month, most of Audi development cost are shared with Volkswagen, the front wheel verisons of these products are similar. For example the investment in the A3 is small because it shares the platform with Skoda, Seat and the VW Golf, . It make take $300 to change a Golf into a A3 and the customer may pay $1500 more for the A3. It takes $500 to change a VW phateon into a Audi A8. the A8 and Pheaton samething. In fact the new Audi R8 shares a lot of parts with the Gallardo. At BMW a 3 series is 100 percent BMW, 1,5,6,7,x5. I would imagine that toyota makes a high rate of return on it's Lexus brand as well. If you research Audi and BMW on Google you will find that BMW makes 3 times more profitable than Audi and 2 times more profitable than VW group.
— Larry (View Profile)

Posted on 12/28/2006 3:41:47 PM | reply to this comment | Votes: -2

Audi is still more profitable than BMW, 13% vs. 11%. and the Audi A8 and the VW Phaeton are very much different as the Audi A8 has an aluminium space frame (ASF) and the Phaeton has a conventional steel body.
— chewy (View Profile)

Posted on 12/28/2006 4:01:59 PM | | Votes: -1

Very easy to get confused.

Yes Audi shares the basic building blocks as VW, but those uniformed tend to think it is simple as Lexus/Toyota sharing, which in many cases is a direct chassis copy and little more.

Audi takes the basic frame and modifies it for the task at hand. Want proof, look at the Q7 vs the Touareg. Wheelbase is longer and wider on the Q7. The basic chassis was widened and lengthened and a different suspension is underneath. The TT also differs from the Golf via a forged aluminum sub frame vs. a simpler and less expensive stamped steel one.

Platform sharing is here to stay. It is up to the parent manufacturer to engineer the building blocks and allow the sister Marquees to either clone directly and make more profit for each one, or use those blocks to build a unique vehicle unlike the sister.

— Agent009 (View Profile)

Posted on 12/28/2006 4:35:28 PM | | Votes: 5

Where are you getting $500 to change a Phaeton over to an A8. Phaeton has steel body and A8 has aluminium body.
— 1uberaudi (View Profile)

Posted on 12/28/2006 7:42:49 PM | | Votes: 4

audi isnt more profitable than bmw, check with a legitimate source, it is approaching bmw, that meants its not as profitable, and to be honest who cares, BMW is one of how many independent brands still out there and it is the only car in any class car it competes with that is still independent, audi is just a "division" that can lean back on its parent company for resources, if audi is having problems being as profitable with an independent company with that kind of resources....thats nothing to brag about.
— bmwdrvr (View Profile)

Posted on 12/28/2006 8:17:14 PM | | Votes: -1

bulldogz

Nope, the Lexus ES350 and the Camry rige on the same wheelbase= same platform and same engine. But the ES350 gets a new body (very stylish) and a decent interior. The RX350 has the same wheelbase and platofrm as the Highlander but is reworked as well. But Toyota fans better not even pretend to say something about VW and Audi sharing 1 platform and a few engines.
— chewy (View Profile)

Posted on 12/29/2006 2:29:45 PM | | Votes: -1

nope, the brand new Lexus ES350 and the Brand new Toyota Camry ride on the same wheelbase.
— chewy (View Profile)

Posted on 12/29/2006 2:33:19 PM | | Votes: -1

Actually...pretty sure you don't know what you're talking about. UM...the Audi A8 has an aluminum space frame, among other things, where the pheaton is made from steel. The A3 and Golf are actually more different than you may think. Ever drive the 2? I own an A3 2.0T
— macpowah (View Profile)

Posted on 1/5/2007 12:41:03 PM | | Votes: 1

I believe they are referring to profitibility from a percentage stadpoint per vehicle, not overall (Toyota's the king there). Btw the A8 is an aluminum space frame and the Phaeton is a steel Bentley chassis.
— AudiBimmer (View Profile)

Posted on 12/28/2006 4:04:50 PM | reply to this comment | Votes: -1

The Phaeton is not a steel Bentley body. The Phaeton is a Phaeton body.
— 1uberaudi (View Profile)

Posted on 12/28/2006 7:43:49 PM | | Votes: 2

looks like we posted at the same time Chewy!!
— AudiBimmer (View Profile)

Posted on 12/28/2006 4:05:29 PM | reply to this comment | Votes: -1

Wouldn't it be surprising if Audi was NOT more profitable per unit than BMW? Audi shares platforms with parent company VW. A3=GTI/Golf and A4=Passat, engines are shared throughout the line. If Audi was not more profitable per unit than BMW, that would be a story.
— AE86 (View Profile)

Posted on 12/28/2006 4:14:19 PM | reply to this comment | Votes: -5

A4 and Passat are not on the same platform anymore. The Golf/Rabbit has beaten the BMW 1 series in many comparison in base and top of the line trims as well. The engines are shared but there is no problem with that as the engines are very good.
— chewy (View Profile)

Posted on 12/28/2006 4:18:46 PM | | Votes: -1

Porsche may buy VW anyway & the last time I checked, they were the most profitable car company per unit.
— AE86 (View Profile)

Posted on 12/28/2006 4:17:16 PM | reply to this comment | Votes: 1

Why is Lexus being brought up? This discussion was about Audi and BMW. Furthermore, ALG's 2007 report placed Audi third behind BMW and Lexus for highest resale--Mercedes was a "distant" 6th.

If you really want to talk about cachet, look at how poorly Lexus is perceived overseas--it is true only Americans will purchase/consider spruced up Toyota's to be in the same league as the real big three (Audi, BMW, and MB).
— AUDIMAN4 (View Profile)

Posted on 12/28/2006 5:14:30 PM | reply to this comment | Votes: 4

That 's great news for audi and audi fans, I prefer to spend my money on something that is not rebadged, or cheap, Audi is not alone but Buick, Mercury, Lincoln, now Saab, and Lexus, Jaguar X-type.
— Larry (View Profile)

Posted on 12/28/2006 4:32:37 PM | reply to this comment | Votes: -8

So you will buy an inferior product only because it isn't rebadged (or shares a few parts with some other vehicle) [I guess the MINI is not a vehicle for YOU] or is more expensive?
— chewy (View Profile)

Posted on 12/28/2006 4:38:23 PM | | Votes: -1

Audi is a distant 8th in the US market in sales and reputation, behind: lexus, bmw, cadillac, meredes, infinti, lincoln, acura, and volvo.
— Larry (View Profile)

Posted on 12/28/2006 4:35:58 PM | reply to this comment | Votes: -5

According to what? A limited and unscientific survey? Why is this relevant?
— AUDIMAN4 (View Profile)

Posted on 12/28/2006 5:16:04 PM | | Votes: 0

how nice of you to tell us that.
relevance?
— Rupert (View Profile)

Posted on 12/28/2006 5:21:52 PM | | Votes: 2

yes..and america elected (once) bush..what americans think of cars means nothing to me, and i'm an american..audi in the rest of the world is viewed as top tier and i could care a less what some idiot american, who probably has a 318, thinks about a car company they know nothing about..i will continue to love my S6 no matter what ford mustang lovers have to say..oh, and by the way i own a M6 as well...and a Honda accord..they all have their advantages, but to say that audi is garbage because the USA thinks that way, is ignorant and perpetuating the stupid american stereotype the rest of the world gives us..
— quattro47 (View Profile)

Posted on 12/28/2006 5:28:13 PM | | Votes: 3

The only platform sharing at Audi is between the A3/Golf and Tourag/Cayenne/Q7. All other models are independent, excluding the R8 (which shares Lambo architecture).

Engines are shared as well--but who cares? Audi/VW engines have typically been very highly rated, not only in performance, but durability, efficiency--apparent by the host of Ward's 10 Best engines awards.

Reality is that overseas, more people are purchasing Audi's, while Audi continues to streamline the manufacturing process and cutting costs, while BMW arrogantly believes themselves to be untouchable.

It happened with the RS4, and it's happening again. BMW better get off the high horse and realize who's a threat.
— AUDIMAN4 (View Profile)

Posted on 12/28/2006 5:20:34 PM | reply to this comment | Votes: 0

the touareg/q7 link is also very weak. Q7 uses only 15% of touareg parts, and as agent001 says, it has a different wheelbase in both directions (sideways and lengthways).
— Rupert (View Profile)

Posted on 12/28/2006 5:26:15 PM | | Votes: 2

You are correct, the Porsche Cayenne shares more with the Volkswagen Touareg than the Audi Q7 does. All three share a V6 engine with FSI (with Porsche adding 10 more horsepower)
— chewy (View Profile)

Posted on 12/28/2006 5:30:14 PM | | Votes: -2

the cayenne has a shorter wheelbase and less interior room than the Q7. the Q7 has the equivalent of the A8L wheelbase..
— quattro47 (View Profile)

Posted on 12/28/2006 5:30:32 PM | | Votes: 2

The following article from Autoweek posted today - showing Audi at 11% profit (for the first time ever) and trying to catch up in sales....

INGOLSTADT, Germany - Audi's return on capital this year will exceed 10 percent for the first time, company sources have told Automobilwoche. Last year the figure was 9.7 percent.

That will approach the returns of rival BMW.

Given Audi's heavy spending for new models and the expansion of its dealer network, says Albrecht Denninghoff, an analyst at Commerzbank, "10 percent is a good figure."

With the new mark, Audi will have twice surpassed the 9 percent return on capital demanded by parent Volkswagen.

The company also will move closer to BMW. Dresdner Kleinwort analyst Arndt Ellinghorst estimates that BMW will achieve an 11 percent return on capital this year, excluding its financial services segment.

But Audi has it easier than BMW. Audi can "fall back on the resources of the parent company," he said.

Incoming Audi Chairman Rupert Stadler, who takes over Jan. 1, faces the crucial task of boosting Audi's sales and brand image.

That will be especially challenging in the United States. Audi was able to increase U.S. sales by 5.4 percent through November, to 78,219 vehicles.

Compared with BMW, Audi's volume remains small. BMW sold 243,487 vehicles in the United States in the same period, excluding Mini and Rolls-Royce.

But Audi's limping U.S. sales do offer a slight advantage, Denninghoff says. Because Audi's volume is relatively small, the weak dollar has only a slight effect on the automaker's bottom line. But longer term, the dollar will become a bigger problem, he adds.

— SixxFive (View Profile)

Posted on 12/28/2006 6:39:57 PM | reply to this comment | Votes: -1

idiots... onely reason this is close is because of their dollar currency exposure. Audi sux in the US and in this case it has helped them. please dont confuse the issues.
— AmazingBimmer (View Profile)

Posted on 12/28/2006 7:30:02 PM | reply to this comment | Votes: -2

Audi's marketing sucks in US. Not the car. Car is far superior to other German makes. However, Americans are impulsive uneducated buyers that don't undertand what there buying. That is why MB and BMW are doing so well.
— 1uberaudi (View Profile)

Posted on 12/28/2006 7:46:25 PM | | Votes: 1

Audi makes exceptionally good cars, whether they platform share with VW or not. They are meticulously finished and well-specced. I do not understand why anybody, even BMW owners, would say otherwise. You buy an Audi for the build quality, and a BMW for the drive quality. Platform sharing is the way forward.
— Buzz (View Profile)

Posted on 12/29/2006 1:51:28 AM | reply to this comment | Votes: 4

more money than almost every single other country?
may i remind you you the average wage in the states is what, 25000 dollars? in britian it's 40000.
and yes, americans are dumb for ignoring audi. they make great cars.
— Rupert (View Profile)

Posted on 12/29/2006 2:38:43 PM | | Votes: 1

The only reason bmws and mercedes are so poopular because most celebs have them and drive the or atleast in some music vid.They rather have the name of a merc or bimmer instead of having exceptionally great cars like an audi. I also think that volvos are underrated
— jt716 (View Profile)

Posted on 12/29/2006 8:30:35 AM | reply to this comment | Votes: -1

Caltrans, in response to you post, 1. BMW has much more cash than Audi, and will spend more on capital investiment than Audi to be exact audi will spend 11.1 billion euro for the next five years roughly 2 billion euro, BMW spends 4 billion euro a year on product, even though this includes Mini and Rolls, still twice as much investiment, three times, plus the profit. Mercedes capital investiment is probably larger than BMW's. 2. I don't know the exact amount of platform sharing but the truth is Audi would not have products it has today without using VW parts. I am not saying that Audi makes a bad car, but you have to respect the BMW has achieved their status on its own, not sharing cheap platforms.
— Larry (View Profile)

Posted on 12/29/2006 9:20:49 AM | reply to this comment | Votes: -1

This is auto news? This is very stupid and irrelevant piece of news. )))
— vladyxa (View Profile)

Posted on 12/29/2006 11:45:03 AM | reply to this comment | Votes: 0

Who Cares....BMW still has the best product (in my humble opinion).

BMW is still independent too, not run by "the peoples" auto crew.
— BMW740Z4 (View Profile)

Posted on 12/29/2006 6:29:54 PM | reply to this comment | Votes: 1

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BMW Overwhelmed?: Audi Set To Blow Away BMW in Profitability per Unit for 2006,

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