Audi Says U.S. Profit May Fall on Dollar, Dealer Cost

**Jason Teller** · 07-08-2007, 07:40 PM

A good read for anybody thinking about Audi's global strategy and what it will take to continue to erode competitive market share in the US... and do it profitably.

http://www.bloomberg.com/apps/news?p...jys&refer=home

**Jason Teller** · 07-08-2007, 07:42 PM

Sort of a follow-on to the previous post.

http://www.iht.com/articles/2007/07/...mberg/bxvw.php

chewym · 07-10-2007, 12:02 PM

Audi has a very long way to go to match the sales of BMW/Lexus/MB. With Audi only selling about 1/3 of the volume. And to get that volume you need constant advertising, cheap leases (incentives)

1990V85speed · 07-10-2007, 02:07 PM

I wonder if that number would be higher if the US allocation was higher? Anyone know the actual number of TDIs sold last year (2006)?

1990V85speed · 07-10-2007, 02:21 PM

One of the reasons that people are leaving Audi for BMW. Johan wants profits over numbers. Good or bad long-term sratergy? We'll see. . .

"Audi's average U.S. incentive costs per car in the first half were $2,643, an 11 percent decline from a year earlier, Woodcliff, New Jersey-based Autodata said. By comparison BMW's incentives increased 71 percent to $3,838, while Mercedes rose 29 percent to $3,082, Autodata said in a July 3 report."

I see that A6 leases are going up in price, again. Noticed that A6 sales have been trending down the last 6 months. Why? Price or other reasons?

chewym · 07-10-2007, 04:04 PM

The A6 started losing sales a month after the Q7 went on sale. Audi has priced the Q7 the same as the A6, if not even cheaper. The leases are also probably much lower for the Q7 than the A6. A typical American will always pick the SUV over the sedan when they are priced about equally. And as the Q7 is more affordable it makes sense.

1990V85speed · 07-10-2007, 05:43 PM

Especially with the number of 2007 Q7s on dealer's lot. Also, there's $4K rebate right now on 2007's. Makes the Q7 less expensive than a comparable A6.

I wonder how many people are forgoing A6s for 5 series now that they have AWD and free maintenance, not to mention better lease deals than the A6.

EvilBob · 08-13-2007, 11:19 PM

and it makes the baby Jesus cry

07-08-2007, 07:42 PM	#2
Jason Teller AudiWorld Founder Garage is empty, add now Join Date: Mar 2000 Posts: 9,649	VW selects new executive for U.S. operations Sort of a follow-on to the previous post. http://www.iht.com/articles/2007/07/...mberg/bxvw.php __________________

07-10-2007, 12:02 PM	#3
chewym AudiWorld Senior Member Garage is empty, add now Join Date: Jul 2006 Posts: 715	The US luxury market is expensive Audi has a very long way to go to match the sales of BMW/Lexus/MB. With Audi only selling about 1/3 of the volume. And to get that volume you need constant advertising, cheap leases (incentives)

07-10-2007, 02:07 PM	#4
1990V85speed Junior Member Garage is empty, add now Join Date: Aug 2006 Posts: 1,144	Interesting number for the Jetta TDI. . . I wonder if that number would be higher if the US allocation was higher? Anyone know the actual number of TDIs sold last year (2006)?

07-10-2007, 02:21 PM	#5
1990V85speed Junior Member Garage is empty, add now Join Date: Aug 2006 Posts: 1,144	Reason for Audi falling sales in the US? One of the reasons that people are leaving Audi for BMW. Johan wants profits over numbers. Good or bad long-term sratergy? We'll see. . . "Audi's average U.S. incentive costs per car in the first half were $2,643, an 11 percent decline from a year earlier, Woodcliff, New Jersey-based Autodata said. By comparison BMW's incentives increased 71 percent to $3,838, while Mercedes rose 29 percent to $3,082, Autodata said in a July 3 report." I see that A6 leases are going up in price, again. Noticed that A6 sales have been trending down the last 6 months. Why? Price or other reasons?

07-10-2007, 04:04 PM	#6
chewym AudiWorld Senior Member Garage is empty, add now Join Date: Jul 2006 Posts: 715	Re: Reason for Audi falling sales in the US? The A6 started losing sales a month after the Q7 went on sale. Audi has priced the Q7 the same as the A6, if not even cheaper. The leases are also probably much lower for the Q7 than the A6. A typical American will always pick the SUV over the sedan when they are priced about equally. And as the Q7 is more affordable it makes sense.

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07-10-2007, 05:43 PM	#7
1990V85speed Junior Member Garage is empty, add now Join Date: Aug 2006 Posts: 1,144	Good point. . . Especially with the number of 2007 Q7s on dealer's lot. Also, there's $4K rebate right now on 2007's. Makes the Q7 less expensive than a comparable A6. I wonder how many people are forgoing A6s for 5 series now that they have AWD and free maintenance, not to mention better lease deals than the A6.

08-13-2007, 11:19 PM	#8
EvilBob AudiWorld Super User Garage is empty, add now Join Date: Jun 2004 Posts: 3,967	This is true and it makes the baby Jesus cry

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