How the A4 Saved Audi in the U.S.
The A4 saved Audi, re-establishing the company as a more upscale luxury brand and giving it a distinctive BMW 3 Series competitor.
Audi was on the ropes in the early 1990s. Between an aging, limited product lineup and the unintended acceleration fiasco, Volkswagen AG considered pulling it from the U.S. market. Japanese brands like Lexus and Infiniti were feasting on European car market share. Alfa Romeo and Peugeot previously departed to focus on the growing European Union. The same strategy offered a lot of benefits to Audi.
Instead of folding, Audi doubled down on its bet. Leveraging VW’s B5 platform, it developed the A4. A clean break from the Audi 80/90, the new car arrived in the U.S. as a 1996 model. It offered a standard 1.8-liter turbocharged four-cylinder engine and an optional 2.8-liter V6 with Quattro all-wheel-drive. Buyers could also choose between a five-speed manual transmission or a five-speed Tiptronic automatic gearbox licensed from Porsche.
The result was an immediate hit with the buying public and motoring press. The A4 reclaimed sales from Lexus and Infiniti. It also put crosshairs on the BMW 3 Series, taking a chunk of sales from its Barvarian-based rival. New Car Test Drive called the A4, “a compelling little sports sedan, strong in the other virtues that still set German cars apart from the rest of the herd.” Motorweek said, “Car enthusiasts have always enjoyed Audi cars. Now, with the mainstream A4, we think everyone will.” Motor Trend concurred, saying in the Long-Term Wrapup, “the A4 should be on every near-luxury car shoppers’ must-drive list.”
Rebranding Audi
Contemporary road tests ranked the Audi A4 mid-pack amid the BMW 328i, Volvo 850, Mercedes-Benz C-Class, and Saab 900S. 0 to 60 times with the Quattro AWD averaged nine seconds. Braking and handling scored solid midpack ratings, with drivers praising the A4’s solid feel that inspired confidence. But where the A4 really stood out is overall quality. It was Teutonically solid with a first-rate design and build quality. Styling was universally liked, and people praised the comfortable and luxurious interior.
What really makes the first generation A4 significant is the direction it took Audi as a brand. Before the A4, people viewed Audi as a German Volvo or even Mercury to VW’s Ford. The A4 rebooted Audi, moving it upscale to compete on equal footing with BMW, Mercedes-Benz, and Lexus. But rather than simply copying the BMW 3 Series or Lexus ES, Audi pulled off something extremely difficult. Audi kept the best parts of its heritage. It focused on its core strengths as a driver’s car and highlighted the Quattro AWD. Then it amped up its styling and added luxury. The result was like Walter Rohrl exchanging his Nomex gear for a Hugo Boss suit.
It was an extremely bold move. And it worked. Audi sold 500,000 A4s in the first 20 months.
Audi Today
By the time Audi launched the second-generation A4 in 2002, the transformation was complete. The company totally revamped its lineup, launched the stunningly beautiful TT, and set its sights on the premium sports car market with the R8. Today Audi sits in the pantheon of premium manufacturers. It offers a unique blend of luxury, style, and all-wheel-drive performance, occupying an enviable position in the marketplace. Partly due to its success, Alfa Romeo made a return to the U.S. market and Peugeot occasionally contemplates one. But while Alfa Romeo struggles to hold on, Audi thrives. And it owes that success to a big bet made on a small car.
Photos: Audi USA
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