Johan de Nysschen just sent me an E-mail response re the allroads future...
#32
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Sales normally taper off near the end of a model's lifecycle...
As is pointed out below, look at the TT sales. The AR and TT products, frankly, are both stale compared to the newer offerings from Audi and its competitors.
How many new features are there on a 2005 vs the 2001/2002 design? Painted bumpers? DVD nav? Whoopee. And they got rid of the 3rd row seat. But I think the AR still has some basic traits that aren't being addressed in Audi's product line and possibly by anyone else in the industry.
Here's how I would define the market 'differentiators' for the AR (based on my needs). IMO, this is the business case that would support the AR continuation in the US...as long as the recipe isn't diluted.
a) size -- non-SUV/wagon that seats 4 comfortably and still has decent cargo space
b) sporty -- not just a powerful engine, MUST be available with a manual transmission
c) luxury -- leather, power seats, seat memory, heated seats, heated steering wheel, steering wheel controls, decent stereo system, etc
d) turbo -- I live and drive at altitude (Denver and in the mtns). You lose roughly 3% of your HP for every 1000 feet you go up. In Denver, a 320hp V8 yields around 270hp. Drive up I-70 or another pass where you'll see in excess of 10,000 feet and the 320hp V8 is wheezing along with 225hp. Give me a turbo with 320hp!
e) build quality -- I cross shopped the Subie Legacy GT and Outback XT. Both were nice cars, but felt kinda flimsy and cheap by comparison. I know the subies will last mechanically, but I still felt that something was lacking in terms of overall quality of materials.
f) the look -- It is sharp and semi-unique. They're all over Denver, though and the cross-over look is being copied more and more.
How many new features are there on a 2005 vs the 2001/2002 design? Painted bumpers? DVD nav? Whoopee. And they got rid of the 3rd row seat. But I think the AR still has some basic traits that aren't being addressed in Audi's product line and possibly by anyone else in the industry.
Here's how I would define the market 'differentiators' for the AR (based on my needs). IMO, this is the business case that would support the AR continuation in the US...as long as the recipe isn't diluted.
a) size -- non-SUV/wagon that seats 4 comfortably and still has decent cargo space
b) sporty -- not just a powerful engine, MUST be available with a manual transmission
c) luxury -- leather, power seats, seat memory, heated seats, heated steering wheel, steering wheel controls, decent stereo system, etc
d) turbo -- I live and drive at altitude (Denver and in the mtns). You lose roughly 3% of your HP for every 1000 feet you go up. In Denver, a 320hp V8 yields around 270hp. Drive up I-70 or another pass where you'll see in excess of 10,000 feet and the 320hp V8 is wheezing along with 225hp. Give me a turbo with 320hp!
e) build quality -- I cross shopped the Subie Legacy GT and Outback XT. Both were nice cars, but felt kinda flimsy and cheap by comparison. I know the subies will last mechanically, but I still felt that something was lacking in terms of overall quality of materials.
f) the look -- It is sharp and semi-unique. They're all over Denver, though and the cross-over look is being copied more and more.
#34
My correspondence with Mr. de Nysschen
> First my letter to him
Dear Sir:
> I am writing in response to the news circulating
> that Audi will not
> bring the new generation allroad into the US. Its
> not so much that I
> write for personal reasons, although I have owned
> two allroads -- the
> second is my current car an 05 4.2, but really to
> try to point out that
> your letter to one of the members of the audiworld
> forum manifests a
> complete lack of understanding of what is going on
> in the US market.
> The premium SUV market is shrinking. Whether that
> be because oil costs
> $60 dollars a barrel, or they are no longer
> politically correct, or
> everyone simply has one already. Audi is entering
> the market 10 years
> too late. And while the Q7 may be an awesome
> vehicle, and there may be
> an initial burst of purchasing, I think you will be
> lucky if Audi breaks
> even on its investment. Just look at what has
> happened to the
> sister-vehicles T-reg and Cayenne. They are sitting
> on dealers lots -
> either too big, or too thirsty, or just plain too
> much. Your car is
> only more of the same.
>
> Audi invented the crossover when it came up with the
> allroad. And it
> makes the most sense right now, precisely when you
> are discontinuing it.
> Allroad buyers dont cross-shop SUVs. We want a
> car/wagon that can do it
> all. It makes sense for many SUV buyers too if they
> could only be made
> aware of its existence. It is shameful that Audi
> chose not to spend any
> of its resouces on marketing of the allroad in this
> country.
> If you had, you would have a much larger audience of
> loyal buyers eager
> to snap up the next generation allroad. Instead you
> are stuck with the
> dinosaur that the Q7 is, or will quickly become. At
> the very least you
> should go for both markets and see which one does
> the best -- I think
> there is room for both.
> Respectfully Steven Odrich
His response:
>Dear Mr. Odrich
>
> I assume Mr. Bernstein has forwarded a copy of my
> note to him regarding
> the same subject.
>
> So I will not repeat the content here.
>
> Yes, we are late with the Audi Q7, but it is still a
> very, very big
> market out there. The Q7 is by no means a "dinosaur"
> as you describe- it
> is nimble, very functional, supremely drivable,
> refined, luxurious and
> fuel efficient. It simply has no equal in its class.
> Reserve judgment
> until you have experienced our new car.
>
> Our present projections indicate a market potential
> of 1500--2000
> allroads per year, sold alongside a Q7. This makes a
> business case for
> the car very fragile, to say the least.
>
> Your opinion, and that of other allroad fans, is
> important to us and we
> do not wish to ignore or abandon you- hence my
> personal reply to your
> email.
>
> As I indicated to Mr. Bernstein, all is not lost, we
> are trying to find
> a way of making it work in a feasible manner.
>
> I really do appreciate your interest in Audi and
> your time to correspond
> with me.
>
> With kind regards
> Johan de Nysschen
>
Dear Sir:
> I am writing in response to the news circulating
> that Audi will not
> bring the new generation allroad into the US. Its
> not so much that I
> write for personal reasons, although I have owned
> two allroads -- the
> second is my current car an 05 4.2, but really to
> try to point out that
> your letter to one of the members of the audiworld
> forum manifests a
> complete lack of understanding of what is going on
> in the US market.
> The premium SUV market is shrinking. Whether that
> be because oil costs
> $60 dollars a barrel, or they are no longer
> politically correct, or
> everyone simply has one already. Audi is entering
> the market 10 years
> too late. And while the Q7 may be an awesome
> vehicle, and there may be
> an initial burst of purchasing, I think you will be
> lucky if Audi breaks
> even on its investment. Just look at what has
> happened to the
> sister-vehicles T-reg and Cayenne. They are sitting
> on dealers lots -
> either too big, or too thirsty, or just plain too
> much. Your car is
> only more of the same.
>
> Audi invented the crossover when it came up with the
> allroad. And it
> makes the most sense right now, precisely when you
> are discontinuing it.
> Allroad buyers dont cross-shop SUVs. We want a
> car/wagon that can do it
> all. It makes sense for many SUV buyers too if they
> could only be made
> aware of its existence. It is shameful that Audi
> chose not to spend any
> of its resouces on marketing of the allroad in this
> country.
> If you had, you would have a much larger audience of
> loyal buyers eager
> to snap up the next generation allroad. Instead you
> are stuck with the
> dinosaur that the Q7 is, or will quickly become. At
> the very least you
> should go for both markets and see which one does
> the best -- I think
> there is room for both.
> Respectfully Steven Odrich
His response:
>Dear Mr. Odrich
>
> I assume Mr. Bernstein has forwarded a copy of my
> note to him regarding
> the same subject.
>
> So I will not repeat the content here.
>
> Yes, we are late with the Audi Q7, but it is still a
> very, very big
> market out there. The Q7 is by no means a "dinosaur"
> as you describe- it
> is nimble, very functional, supremely drivable,
> refined, luxurious and
> fuel efficient. It simply has no equal in its class.
> Reserve judgment
> until you have experienced our new car.
>
> Our present projections indicate a market potential
> of 1500--2000
> allroads per year, sold alongside a Q7. This makes a
> business case for
> the car very fragile, to say the least.
>
> Your opinion, and that of other allroad fans, is
> important to us and we
> do not wish to ignore or abandon you- hence my
> personal reply to your
> email.
>
> As I indicated to Mr. Bernstein, all is not lost, we
> are trying to find
> a way of making it work in a feasible manner.
>
> I really do appreciate your interest in Audi and
> your time to correspond
> with me.
>
> With kind regards
> Johan de Nysschen
>
#35
Re: As did I. 4Runner--->allroad
Suburbans for years for an allroad..it is my anti-SUV but it really does ^&%^%* that the only thing I can find to replace it would be a Suburu Outback with 250 hp...I'd rather be an Audi freak thanks
#36
"Better and nicer" - that's relatively speaking...
First, I would like to start by saying, that the definition of better and nicer is my opinion and my opinion only.
For example, way back when my wife wanted a B5 S4, after it was all said and done, for a few bucks more we picked up a 540i, opting for the auto only because it's the wife's car. Better in my opinion and nicer to. Faster or sportier than a S4, who cares it's the wifes car.
When the Allroads first came out, I was there checking them out and wanted to jump on one and couldn't believe how much is was. If I recall correctly, after sitting on the lot for a couple of hours negotiating, they wouldn't budge at $47K-ish. So instead I got an MDX, no nav option so roughly $36k-ish (w/tax). Nicer... sure, it was very nice and smooth but I needed a step ladder to put my bikes up, then I got a hitch. Better... at the time, absolutely for the money. Then I got T-boned by a stupid super fine bimbo in her GMC SUV yapping on her cell phone, I bled all over my car seats and carpet essentially ruining it. After suing the crap out of her, I was trying to find a Toureg diesal but read the reviews and feedback on how crappy they were, got spooked and decided to look into a new kitchen. Then one day I saw an Allroad on a Infinity lot, it rekindled the love.
So far... I agree with everyone on this forum and absolutely love this car!! I knew back in '01 and realizing it now, with the exception of the poorly designed rubberized coating. It completely fits my niche.
For example, way back when my wife wanted a B5 S4, after it was all said and done, for a few bucks more we picked up a 540i, opting for the auto only because it's the wife's car. Better in my opinion and nicer to. Faster or sportier than a S4, who cares it's the wifes car.
When the Allroads first came out, I was there checking them out and wanted to jump on one and couldn't believe how much is was. If I recall correctly, after sitting on the lot for a couple of hours negotiating, they wouldn't budge at $47K-ish. So instead I got an MDX, no nav option so roughly $36k-ish (w/tax). Nicer... sure, it was very nice and smooth but I needed a step ladder to put my bikes up, then I got a hitch. Better... at the time, absolutely for the money. Then I got T-boned by a stupid super fine bimbo in her GMC SUV yapping on her cell phone, I bled all over my car seats and carpet essentially ruining it. After suing the crap out of her, I was trying to find a Toureg diesal but read the reviews and feedback on how crappy they were, got spooked and decided to look into a new kitchen. Then one day I saw an Allroad on a Infinity lot, it rekindled the love.
So far... I agree with everyone on this forum and absolutely love this car!! I knew back in '01 and realizing it now, with the exception of the poorly designed rubberized coating. It completely fits my niche.
#37
-84.9% eliminates any business proposal, no matter how much we want it.
But some will say that a wider variety of choices will increase sales opportunities - with the allroad numbers that much down it's highly doubtful.
That leaves us with one conclusion - enjoy every mile behind the wheel as long as it will last ;-)
And on a final note; people should have realized by now that we are a rare bunch of enthusiasts, unlike the S4 community (nothing wrong with that ;-).
Thanks for sharing the numbers!
That leaves us with one conclusion - enjoy every mile behind the wheel as long as it will last ;-)
And on a final note; people should have realized by now that we are a rare bunch of enthusiasts, unlike the S4 community (nothing wrong with that ;-).
Thanks for sharing the numbers!
#39
Marketing - my $0.02
How many of us are in sales or marketing? All they need to do is do some good marketing and they could sell the allroad all day long. They need to go after their competition - get exposure and make people want it. Most of the time people buy cars because they want it - we could all just drive Camrys if we did not care what we drove. Maybe a commercial or two - a contest. Hey here is a good one - do a ride and drive (I do them for a living) they sell cars, If you give people a chance to drive one and compare it to a Mercedes, BMW, Ford Freestar, etc. They will sell.
#40
Exactly. The ONLY press the allroad got here, either in video or print was on the back cover of
Alaska Air's inflight magazine. Talk about a total lack of enthusiasm about your product!