Despite strong growth, Audi plans to slow production
Audi is taking a cautious approach to the market as sales grind down around the world. To do that, the four-ringed automaker plans to extend its Christmas shutdown, a funny way to celebrate Audi's best global sales year ever, anticipated to crest one million units.While the luxury competition has struggled in the rough and tumble US market, Audi has seen sales gains, which is a big reason global sales are up 3.3% year over year. Audi has been so successful of late that it came within 100 units of (the much larger) Mercedes-Benz in global October sales, while BMW is also within 10,000 units. The new A4 sedan and wagon are helping matters, and the upcoming Q5 crossover is waiting in the wings to keep things interesting in 2009.
With all that good news, why cut back production? Audi Chief Executive Rupert Stadler called the German automaker's performance "increasingly influenced by declining markets." In other words, Audi wants to approach the global sales decline with the novel notion of cutting production before cars start sitting on dealer lots for months on end. Makes perfect sense to us.
[Source: Reuters]
Reader Comments (Page 1 of 1)
Hugh G 8:32AM (11/11/2008)
I don't get it. Audi's are junk... but their sales are growing faster than BMW, Caddi, and so on?
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Tim 8:49AM (11/11/2008)
Junk? and how did you come up with this? Please... we would like to know.... facts please if you're going to be so bold.
Perry 9:11AM (11/11/2008)
I am on my second A4 and so far it has been a rock solid trouble free experience. Where do you come up with that stuff anyways?
Frank 9:43AM (11/11/2008)
He got it from the same place everyone gets their "expertise" from - Autoblog and other sites. These are the guys that say domestics suck - and have never owned one or one made in the last 5 years. These are the guys that say Chrysler interiors are cheap plastic - and have never sat in one. These are the guys that say the Challenger is bloated and can't take curves - and have never driven one. These are the guys that say the Chinese can't make quality cars - and have never been to China to see their current and future products in development. These are the guys that say such and such a car is a terrible design - but have never designed a car in their life.
It's myopia of the mind.
USB 9:51AM (11/11/2008)
And yet, the Franks of the world keep reading Autoblog... Oh, and by the way, Hugh G, we're still waiting for your supportive evidence on why Audi's are "junk." Thanks.
why not the LS2LS7? 12:39PM (11/11/2008)
I don't know where he got it, but I don't get my experience on this from autoblog, I get it first hand.
They're mechanically unsound. I'm sure they've gotten better since mine (a 2000, got it in late 1999), but that wouldn't be saying much.
In a way, this is okay, since it helps keep their premium image. It's tough to even own a used one because the repairs will be far more costly than a used Civic or whatever. That means that someone who owns one has decent means or is very good with a wrench and finding cheap parts.
happy_penguin 2:37PM (11/11/2008)
He could have based this opinion on the 2008 JD Power Vehicle Dependability Study which ranks Audi at below average with 207 problems per 100 vehicles:
http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2008115
I hardly think that makes Audi junk but it does place them well below such "junk" as Mercury, Cadillac, Buick, Lincoln and Ford. :)
rsfourever 3:25PM (11/11/2008)
yes, and above such industry stalwarts as Mercedes Benz, Volvo and Scion (of Toyota).
It's not hard to find data when you already have a hypothesis. the true test is using data to formulate a hypothesis. how bout this:
audi has improved its reliability and quality regularly, year after year, since the late 2000s. from personal experience, having owned all three major german marques, i can tell you that audis more than hold their own against their german competition.
having had one experience with an audi in 1999 doesnt mean that the entire brand is a poor one.
if you really want to look at useful data, why not examine germany's car market, generally recognised as the most well-read and demanding in the world. audi has for a while now been the top selling luxury brand in germany...
happy_penguin 5:20PM (11/11/2008)
"rsfourever @ Nov 11th 2008 3:25PM
yes, and above such industry stalwarts as Mercedes Benz, Volvo and Scion (of Toyota)."
I couldn't agree more. Again, that doesn't make Audi "junk". I'm sure they're fine cars. :)
This is simply data collected from owners which tracks how many problems cars have. I don't think of average as all that bad considering the high quality you find across the industry. But at some point, when you get down to Volkswagen, Kia and Land Rover territory you have to ask yourself if they aren't just getting a little bit too unreliable.
Ian 9:01AM (11/11/2008)
They probably know their growth won't be sustained in the global economy, so they're slowing down BEFORE they're overloaded with inventory. Good move if you ask me.
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Ian 9:02AM (11/11/2008)
I guess I should read the whole post before I comment. Seems I was right... but only stating what was already stated. :-x
mjk 9:16AM (11/11/2008)
+1
Avinash machado 9:13AM (11/11/2008)
Perhaps they learned from GM's mistake leading to stockpiles of trucks on the dealer lots.
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gdrs 12:04PM (11/11/2008)
Audi better start working on improving delivery time, rather then take long X-mas holiday. Here, in Belgium - several hours drive from the Audi factory, it takes 7 moths to get the custom made A4 (if you want automatic transmition). BMW and Volvo can deliver in 2 -2.5 months. Q5, btw, looks very nice. I had no chance to test drive-it yet, but at least in showroom looks nicer and more comfortable than dated BMW X3 or new Volvo XC60 (I did not like X3 dated interior and XC60 uncomfortable driving position).
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Raz 6:45PM (11/11/2008)
It still takes 4 months to deliver anything from Germany or the UK to Australia. Audi, BMW, the lot.
Raz 6:46PM (11/11/2008)
I reckon its a smart move, rather than pushing it, they just hold back for a while and wait for the economy to come back up again. Nice work!
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Chris 1:37AM (11/13/2008)
I attribute a large portion of their success to:
THE KICKASS LEDS THEY STUD IN THEIR HEADLAMPS!!!!
OH YES! leds.... haaaawww
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