The launch of the brand-building, high-end showroom reflects the automaker's new confidence that its cars can follow through on its promise
On a brisk Wednesday morning earlier this month, a small group of auto journalists milled around inside the New York City Audi Forum. Chatting with company executives, they waited under floating flat screens and pulsing lights for Mayor Michael Bloomberg to arrive in the company's high-profile new R8 roadster and inaugurate both the new space and new model.
High-handed theatrics and lavish parties—the later evening opening attracted celebs such as Stephen Colbert and Wyclef Jean—are common in the auto industry. But the blitz that heralded the new Forum's opening and the U.S. unveiling of Audi's first supercar in one public event, garnished with the mayor's visit, represents the beginning of the brand's concentrated effort to claw back lost market share and battle perception problems in the U.S. market.
Shoring up Audi's position in the U.S., with the New York City Forum as a kind of crown jewel, is a top priority for the company's leadership. It sells far fewer cars to wealthy Americans than do its chief German rivals, Mercedes-Benz and BMW. According to Automotive News, during the first nine months of this year, BMW sold 155,525 cars, Mercedes 129,781, and Audi a mere 58,569.
Memory for Mistakes
Given that in its native Germany it stands shoulder-to-shoulder with both those marques, and is often voted the No. 1 German car brand, this is a bitter pill to swallow. Worse, according to this year's Luxury Institute survey of high-wealth individuals, Audi ranked ninth in perceived prestige, below the three major German luxury automotive brands as well as lower-cost imports Lexus, Infiniti, Jaguar, Land Rover, and even Volvo.
Ralph Weyler, a member of Audi's Board of Management responsible for marketing and sales, says that during the 1990s the company, to its detriment, focused on worldwide growth while companies such as Toyota's (TM) Lexus luxury division chose to focus on the burgeoning U.S. market. "You pay for your sins for a long time in this business," says Weyler.
"Our brand isn't as strongly developed in the U.S. and that causes some challenges," adds Johan de Nysschen, executive vice-president in charge of Audi of America. "But we aren't going to be able to conquer America with a marketing blitz. We need to be more targeted."
Flying Flat Screens
Hence the Audi Forum, which looms tall and boxy above Park Avenue. The 6,461 sq. ft. Forum represents Audi's concentrated effort to increase exposure to metropolitan consumers as it strives to win the high-value customers that in the U.S. are so often wooed by German competitors. "Having the Forum here is like having an embassy in New York," says Axel Catton, Audi's director of communications. "It represents a big commitment to the brand."
Tending more toward art museum looks, the Forum eschews the traditional dealership dynamics. There are no cheesy banners announcing financing offers, no sales staff, and certainly no paperwork in evidence. Short films highlighting new products and the company's F1 and Rally racing feats are beamed onto multiple 63-in. flat screens throughout the space, including a 6-x-8-ft. high-definition LED screen that floats high in the air, moving along an S-curve track in the ceiling.
The L-shaped floor plan is divided into three main areas. On a stage in the front, a demo model is bathed in fashion show lights while another area nearby is populated by glass cases with Audi merchandise and memorabilia that isn't for sale. Touch-screen kiosks throughout let visitors "virtually" customize any of Audi's U.S. models
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