Does anyone wonder if Audi is going to be phased out of the North American market?
05-02-2002, 12:19 PM
#1
AudiWorld Senior Member
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Does anyone wonder if Audi is going to be phased out of the North American market?
It seems as though Volkswagon's focus is to "upscale" VW: the styling cues between Audi and VW are narrowing, the introduction of the W8 and soon the $80K Phaeton, syncro (quattro) is available on an increasing number of VW offerings, huge VW advertising budget vs. small Audi budget, etc. I know in Europe Audi is as highly regarded as BMW, Mercedes, et al. And I don't understand why the American public hasn't forgotten the (false) sudden accelleration event of 1986 (thanks 60 minutes). So, I just wonder if their long range strategy includes Audi in North America? Maybe this generation of A4 is Corporate VW's market test of viability in the ol' US.
Get the word out and save our brand!
I love my A4 -- Long live Audi!
Get the word out and save our brand!
I love my A4 -- Long live Audi!
05-02-2002, 12:34 PM
#3
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Nah. The quality difference from VW-Audi is still there. When it is the same, then worry.
It's going to take a long time for ppl in the US to put a VW up against a BMW or Mercedes.
The public has forgotten the unintended acceleration fiasco. Look at how well the B5 platform sold. Audi killed BMW and Merc. in the lower end market. (Merc has the new coupe in the mid 20s) Then with the A6 and it's variations, they took a big chuck out of the middle.
The biggest proof they are staying is the offering of the RS6 onto this soil. If they were pulling out they would not bother with bringing such a low production car here. They know they already have issues with service here. Most dealers are overhwhelmed with how well VW and Audi has sold.
Audi AG and AoA are slowly working on dealers to have different showrooms for VW/Audi (like Porsche sometimes does). They are funding some of it to get dealers to build bigger/nicer facilities. Lots of stuff in the works, just Audi is one of the most secretive companies out there.
My $.02
The public has forgotten the unintended acceleration fiasco. Look at how well the B5 platform sold. Audi killed BMW and Merc. in the lower end market. (Merc has the new coupe in the mid 20s) Then with the A6 and it's variations, they took a big chuck out of the middle.
The biggest proof they are staying is the offering of the RS6 onto this soil. If they were pulling out they would not bother with bringing such a low production car here. They know they already have issues with service here. Most dealers are overhwhelmed with how well VW and Audi has sold.
Audi AG and AoA are slowly working on dealers to have different showrooms for VW/Audi (like Porsche sometimes does). They are funding some of it to get dealers to build bigger/nicer facilities. Lots of stuff in the works, just Audi is one of the most secretive companies out there.
My $.02
05-02-2002, 12:36 PM
#5
VW has a long road ahead...
to position itself as a lux marque on par with MB. Just look at the years of marketing by Acura and Lexus--and they still carry a different impression (status) than the luxury MB and BMW models.
VW had a strong association with being a economy car, but they successfully re-marketed themselves to 20-somethings. I suppose if they rose from the ashes once, they can perhaps do it again. Still, the luxury market is so hard to break into.
VW had a strong association with being a economy car, but they successfully re-marketed themselves to 20-somethings. I suppose if they rose from the ashes once, they can perhaps do it again. Still, the luxury market is so hard to break into.
05-02-2002, 12:38 PM
#6
AudiWorld Senior Member
Thread Starter
But have you noticed...
The automobile companies' strategy during the late '80s through late '90s was to expand market share by consuming other brands and creating mega companies. For example, Ford purchased Volvo, Jag, Austin Martin, etc. BMW bought Rover, Rolls, etc. These companies attacked different markets with different brands (under their corporate umbrella).
Now, the strategy seems to be strip out the excess brands and build a complete lineup under a single brand. For example, Mercedes (I know they are with Chrysler) now offers $26K c-class coupes, BMW will be introducing the 1-series, etc. with their mega dollar flagship models. Also, they all offer SUVs, crossover vehicles, and so on. Maybe they purchased these other car companies, stripped the knowledge from them and are applying it to their "leaner and meaner" consolidated self that is now flush with cash from the sales of these other brands.
I'm just affraid that VW exec.s may be doing the same thing.
Now, the strategy seems to be strip out the excess brands and build a complete lineup under a single brand. For example, Mercedes (I know they are with Chrysler) now offers $26K c-class coupes, BMW will be introducing the 1-series, etc. with their mega dollar flagship models. Also, they all offer SUVs, crossover vehicles, and so on. Maybe they purchased these other car companies, stripped the knowledge from them and are applying it to their "leaner and meaner" consolidated self that is now flush with cash from the sales of these other brands.
I'm just affraid that VW exec.s may be doing the same thing.
05-02-2002, 12:40 PM
#7
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I agree with your observation and I think they call this "cradle to grave branding"
and VW is jumping in headfirst. Think about the 8 cars a person will own in their lifetime, average. If you can get actual brand loyalty it's worth beeejillions of dollars.
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05-02-2002, 12:42 PM
#8
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The point is that they are not going to be a "luxury marque" ...
It is that they, and BMW, and Mercedes, and Toyoda, etc. want to be an everything marque. Economy vehicles through luxury vehicles.
05-02-2002, 12:43 PM
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I think VW's plan will fail.
name recognition goes a LONG way. And while VW may make the superior car, people are still going to have a problem spending that kind of money on a VW when they can get the MBenz, BMW, or an Audi.
The Passat W8 is their first hack at higher class, and as it is, most of the reviews are mediocre. "Good Try"
When the Phaeton hits, we'll have a good idea of how their plans work. I know I would never spend $65K on a VW when I could get an Audi or BMW (I'm not fond of MBenz and their quality has been lack luster to boot, so it'snot hard to out do them).
VW's largest obsticle is going to be overtaking their historical name of a german car for little money.
Now they want you to buy a german car for a lot of money. Yea, it'll be a little cheaper than other german cars in the price range (or thats the goal), but people still have to contend with the name thing.
The Passat W8 is their first hack at higher class, and as it is, most of the reviews are mediocre. "Good Try"
When the Phaeton hits, we'll have a good idea of how their plans work. I know I would never spend $65K on a VW when I could get an Audi or BMW (I'm not fond of MBenz and their quality has been lack luster to boot, so it'snot hard to out do them).
VW's largest obsticle is going to be overtaking their historical name of a german car for little money.
Now they want you to buy a german car for a lot of money. Yea, it'll be a little cheaper than other german cars in the price range (or thats the goal), but people still have to contend with the name thing.