Audi plans to close U.S. pricing gap (i.e. raise prices)
10-11-2006, 11:39 AM
#1
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Audi plans to close U.S. pricing gap (i.e. raise prices)
This sounds like the wrong approach if they plan to grow sales. I think the A4 is currently overpriced among the 3-series/IS/G35 crowd. They need to match the other brands in power if they want to charge the same money. Instead of spending money on Audi forums on Park Ave, they should upgarde the cars and keep the free maintenance.
VW's Audi looks to close U.S. pricing gap
By Chris Reiter
NEW YORK, Oct 11 (Reuters) - German auto maker Audi on Wednesday said it planned to gradually raise car prices in the United States as it seeks to return to profitability and close the gap with other premium brands in the world's largest auto market.
Audi, Volkswagen's premium unit, sells its cars for about 4 percent less than rivals BMW and Mercedes-Benz, stifled by a weaker image, said Johan de Nysschen, executive vice president in charge of Auburn Hills, Michigan-based Audi of America Inc.
"We want to close this gap in five years," he told reporters in New York.
The car maker, he said, planned to raise its prices over time as it launches new models and improves its brand image and dealer network. "You can't push pricing too quickly," said de Nysschen.
To improve its image, Audi is considering showcasing its cars in more product placements like it did in the science fiction movie "I, Robot."
In the Spring, it also held "lifestyle" events that offered test drives and featured partners such as exotic travel company Abercrombie & Kent, upscale stereo maker Bang & Olufsen, and motorcycle maker Ducati.
De Nysschen and other Audi executives were in New York for the opening of an Audi Forum - a 6,400-square foot showroom on Manhattan's well-heeled Park Avenue, which de Nysschen said is one of Audi's efforts to improve its brand image.
The showroom, which features an 8-foot by 6-foot high-definition video screen that meanders along the ceiling, can display up to five cars and offers passersby the opportunity to learn more about the brand.
The New York Audi Forum is the first showroom of its kind in the U.S. and the company's ninth worldwide. It is a marketing rather than a sales venue. Any cars sold at the New York site, for instance, will be delivered by a local dealer.
Audi is considering similar facilities in Los Angeles and Miami, de Nysschen said.
Audi aims to be break-even in the U.S. this year and be profitable next year, after posting a loss last year.
The brand, which is known by four interlocked rings, expects 2006 sales to top 86,000 cars, which would mark Audi's best-ever U.S sales performance since 2003, de Nysschen said.
Breaking the 100,000 mark for annual car sales was "possible" in 2008, amid expectations of a 3 percent to 5 percent rise in Audi U.S. sales next year, he added. Audi sold 83,000 cars in 2005.
VW's Audi looks to close U.S. pricing gap
By Chris Reiter
NEW YORK, Oct 11 (Reuters) - German auto maker Audi on Wednesday said it planned to gradually raise car prices in the United States as it seeks to return to profitability and close the gap with other premium brands in the world's largest auto market.
Audi, Volkswagen's premium unit, sells its cars for about 4 percent less than rivals BMW and Mercedes-Benz, stifled by a weaker image, said Johan de Nysschen, executive vice president in charge of Auburn Hills, Michigan-based Audi of America Inc.
"We want to close this gap in five years," he told reporters in New York.
The car maker, he said, planned to raise its prices over time as it launches new models and improves its brand image and dealer network. "You can't push pricing too quickly," said de Nysschen.
To improve its image, Audi is considering showcasing its cars in more product placements like it did in the science fiction movie "I, Robot."
In the Spring, it also held "lifestyle" events that offered test drives and featured partners such as exotic travel company Abercrombie & Kent, upscale stereo maker Bang & Olufsen, and motorcycle maker Ducati.
De Nysschen and other Audi executives were in New York for the opening of an Audi Forum - a 6,400-square foot showroom on Manhattan's well-heeled Park Avenue, which de Nysschen said is one of Audi's efforts to improve its brand image.
The showroom, which features an 8-foot by 6-foot high-definition video screen that meanders along the ceiling, can display up to five cars and offers passersby the opportunity to learn more about the brand.
The New York Audi Forum is the first showroom of its kind in the U.S. and the company's ninth worldwide. It is a marketing rather than a sales venue. Any cars sold at the New York site, for instance, will be delivered by a local dealer.
Audi is considering similar facilities in Los Angeles and Miami, de Nysschen said.
Audi aims to be break-even in the U.S. this year and be profitable next year, after posting a loss last year.
The brand, which is known by four interlocked rings, expects 2006 sales to top 86,000 cars, which would mark Audi's best-ever U.S sales performance since 2003, de Nysschen said.
Breaking the 100,000 mark for annual car sales was "possible" in 2008, amid expectations of a 3 percent to 5 percent rise in Audi U.S. sales next year, he added. Audi sold 83,000 cars in 2005.
10-11-2006, 12:39 PM
#5
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Looks like many of the price increases are going to be more VeeWee...
Are you for real? You sound like a bunch of old women with nothing better to do then complain!
Audi makes great cars and can compete with BMW and other premium car brands. If you plan on dropping Audi for 4% go ahead... you are probably not their target market anyway. Price needs to be competitive but if this is your primary concern buy a nice Japanese car.
Audi makes great cars and can compete with BMW and other premium car brands. If you plan on dropping Audi for 4% go ahead... you are probably not their target market anyway. Price needs to be competitive but if this is your primary concern buy a nice Japanese car.
10-11-2006, 01:02 PM
#7
It makes total sense. Audi's models WILL match or exceed specs from competitors...
... Audi's line-up will match or surpass its rivals spec-to-spec by the time its prices rise to also match the competition. Remember, the 2008 A5 and 2009 A4 will have V6 power in the 300hp range. That's on par with what BMW and Lexus offer.
In most of the rest of the world, Audi is regarded as an equal to BMW and Merc with prices to match.
We are spoiled in the US by getting Audi's at a discount due to its image problems. This can only last so long now that Audi is aggressively pursuing increased US market share.
In the meantime, I suggest we enjoy the price cuts while they last!
In most of the rest of the world, Audi is regarded as an equal to BMW and Merc with prices to match.
We are spoiled in the US by getting Audi's at a discount due to its image problems. This can only last so long now that Audi is aggressively pursuing increased US market share.
In the meantime, I suggest we enjoy the price cuts while they last!
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10-11-2006, 01:08 PM
#8
True, but did you take into account....
- S Line and Titanium
- Technology like NAV, Bluetooth
- Inflation
The options on the new A4's are more extensive and sophisticated than what was offered on the B5's. This is plus inflation are the major reasons for the drastic overall price increase.
- Technology like NAV, Bluetooth
- Inflation
The options on the new A4's are more extensive and sophisticated than what was offered on the B5's. This is plus inflation are the major reasons for the drastic overall price increase.
10-11-2006, 01:45 PM
#9
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Audi undercut the competition big time with the first A4 and A8
It was do or die if Audi wanted to stay in the North American market. A8 was sold at a loss from what I've read.
And now Audi's back in the game, they do have to adjust their prices to be on par with the competition from their perspective but it never looks good from a consumer's perspective, especially ones that has owned previous Audis.
And now Audi's back in the game, they do have to adjust their prices to be on par with the competition from their perspective but it never looks good from a consumer's perspective, especially ones that has owned previous Audis.
