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How come Lexus/BMW/Mercedes double Audi's sells in America?

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Old 01-31-14, 06:23 PM
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Tim1988
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Default How come Lexus/BMW/Mercedes double Audi's sells in America?

http://www.goodcarbadcar.net/2014/01...s-figures.html


Audi is obviously on par with them in terms of quality and higher end segments. They are also consider an established top level luxury brand. How come they are getting dominated in sales?

It can't be their 'prices' either.


We got the A4 starting at 33,000. A6 at 43,000. A8 at 75,000. Their SUV'S are 37-50k. I mean their prices are similar to Lexus/BMW and cheaper than Mercedes. Only slightly higher than Acura/Infiniti/Volvo.

Their cars are beautifully designed and priced right. So how come they are not able to edge out someone from that Lexus/BMW/Mercedes triangle?
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Old 01-31-14, 06:44 PM
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Originally Posted by Tim1988
http://www.goodcarbadcar.net/2014/01...s-figures.html


Audi is obviously on par with them in terms of quality and higher end segments. They are also consider an established top level luxury brand. How come they are getting dominated in sales?

It can't be their 'prices' either.


We got the A4 starting at 33,000. A6 at 43,000. A8 at 75,000. Their SUV'S are 37-50k. I mean their prices are similar to Lexus/BMW and cheaper than Mercedes. Only slightly higher than Acura/Infiniti/Volvo.

Their cars are beautifully designed and priced right. So how come they are not able to edge out someone from that Lexus/BMW/Mercedes triangle?

I have a friend who used to work for Audi; She would tell me qualified buyers would be turned down from lease/finance deals because they only wanted the "elite" to drive their vehicles. She ended up leaving Audi because of this. I dont know how true this statement is but Audi does make some nice vehicles.. Audi's history can be a determining factor also because Audi wasnt always the best quality back in the days. I Love Audi... not as much as Lexus but its a good 3rd place after BMW
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Old 01-31-14, 06:55 PM
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Audi has a lousy history concerning reliability. Loaded with lots of expensive repairs. No doubt they have improved as of late but it's still a concern. Leasing though would make this a lesser issue.

If one is willing to deal with the headaches that come standard with all German cars, then a majority of people first associate with the better known prestige of Mercedes and BMW. Audi will never sell more than them. These customers are mostly about image.
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Old 01-31-14, 07:06 PM
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Originally Posted by ARISTOh
I have a friend who used to work for Audi; She would tell me qualified buyers would be turned down from lease/finance deals because they only wanted the "elite" to drive their vehicles. She ended up leaving Audi because of this. I dont know how true this statement is but Audi does make some nice vehicles.. Audi's history can be a determining factor also because Audi wasnt always the best quality back in the days. I Love Audi... not as much as Lexus but its a good 3rd place after BMW
From news article:
Audi, the best-selling premium brand in China, sold 42,778 vehicles in the country. For the first eight months, the automaker delivered 312,683 units in the country, keeping it on pace to meet its 450,000-vehicle sales target for this year.

I guess Audi was more focus on the Chinese market for the past 10 years. Since the Chinese market is settle down.....Audi is gaining market share in US rapidly.
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Old 01-31-14, 07:10 PM
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Originally Posted by -J-P-L-
If one is willing to deal with the headaches that come standard with all German cars, then a majority of people first associate with the better known prestige of Mercedes and BMW. Audi will never sell more than them. These customers are mostly about image.
This basically answers the question. Audi is a much younger brand than Mercedes and BMW so its brand image is weaker, resulting in fewer car sales.

Lexus is also a younger brand but its reliability rating is unique and gives it quite an advantage
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Old 01-31-14, 10:53 PM
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Originally Posted by ARISTOh
I have a friend who used to work for Audi; She would tell me qualified buyers would be turned down from lease/finance deals because they only wanted the "elite" to drive their vehicles. She ended up leaving Audi because of this. I dont know how true this statement is but Audi does make some nice vehicles.. Audi's history can be a determining factor also because Audi wasnt always the best quality back in the days. I Love Audi... not as much as Lexus but its a good 3rd place after BMW
Interesting. The only thing we have today that acts as a direct symbol of wealth is something like a palladium card (you need to have a minimum level of assets held by JP Morgan - something on the order of $25 million USD).

Even the Centurion card (colloquially known as the "black card") isn't necessarily a direct measure of wealth because one can rack up $250k in non-personal credit card charges and therefore be invited to own a Centurion card without actually being wealthy.

Luxury watches obviously suffer as well. Even less well-off people can probably finance an expensive watch over many years.

I've always wondered if a car company would ever implement thresholds (income? net worth? credit score?) below which they would deny customers. Granted, it's elitist and possibly distasteful and probably detrimental from a business/profit standpoint, but it's an intriguing proposition.
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Old 01-31-14, 11:21 PM
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Originally Posted by ARISTOh
I have a friend who used to work for Audi; She would tell me qualified buyers would be turned down from lease/finance deals because they only wanted the "elite" to drive their vehicles. She ended up leaving Audi because of this.
Heh, no offense, but I don't buy this for a split second. Audi is not Ferrari. They will sell cars to whoever can afford to buy them.


Originally Posted by -J-P-L-
Audi has a lousy history concerning reliability. Loaded with lots of expensive repairs. No doubt they have improved as of late but it's still a concern. Leasing though would make this a lesser issue.

If one is willing to deal with the headaches that come standard with all German cars, then a majority of people first associate with the better known prestige of Mercedes and BMW. Audi will never sell more than them. These customers are mostly about image.


This is the first thing that comes to mind when I think of Audi: quality issues.



Also, I'm not a fan of the fact that all of their cars are AWD instead of RWD. If you live in the south, like I do, AWD is pretty much a waste. I would rather they save the money, weight, and complexity and build more dynamically-handling, better-balanced RWD platforms.

As it is, Audis have a reputation for being some of the more underpowered and less fun to drive cars in their segment, in large part to the compromises they have to make for AWD.

In my opinion, between these three issues (reliability, image, and performance/drivetrains), you have the explanation for Audi's struggles.

Last edited by RocketGuy3; 01-31-14 at 11:28 PM.
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Old 02-01-14, 10:49 AM
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Originally Posted by Tim1988
http://www.goodcarbadcar.net/2014/01...s-figures.html


Audi is obviously on par with them in terms of quality and higher end segments. They are also consider an established top level luxury brand. How come they are getting dominated in sales?

It can't be their 'prices' either.


We got the A4 starting at 33,000. A6 at 43,000. A8 at 75,000. Their SUV'S are 37-50k. I mean their prices are similar to Lexus/BMW and cheaper than Mercedes. Only slightly higher than Acura/Infiniti/Volvo.

Their cars are beautifully designed and priced right. So how come they are not able to edge out someone from that Lexus/BMW/Mercedes triangle?
So--if this question could be answered simply on CL, don't you think Audi would have figured out the answer by now, and increased its sales???
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Old 02-01-14, 11:04 AM
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Originally Posted by Tim1988
http://www.goodcarbadcar.net/2014/01...s-figures.html


Audi is obviously on par with them in terms of quality and higher end segments. They are also consider an established top level luxury brand. How come they are getting dominated in sales?

It can't be their 'prices' either.


We got the A4 starting at 33,000. A6 at 43,000. A8 at 75,000. Their SUV'S are 37-50k. I mean their prices are similar to Lexus/BMW and cheaper than Mercedes. Only slightly higher than Acura/Infiniti/Volvo.

Their cars are beautifully designed and priced right. So how come they are not able to edge out someone from that Lexus/BMW/Mercedes triangle?
Because they're just re-badged VWs and a lot of people recognise that fact.
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Old 02-01-14, 11:08 AM
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Originally Posted by tex2670
So--if this question could be answered simply on CL, don't you think Audi would have figured out the answer by now, and increased its sales???
I agree. I'm sure the folks at Audi are working on it.....
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Old 02-01-14, 01:58 PM
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Originally Posted by Big Andy
Because they're just re-badged VWs and a lot of people recognise that fact.
Sounds like the teapot is calling the kettle black. No more than lexus my friend.
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Old 02-01-14, 05:55 PM
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Poor quality history, poor lease residuals, not enough dealerships in US.

Having said that - they are gaining sales every year and may be #3 soon if Lexus stays still.
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Old 02-01-14, 06:39 PM
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Originally Posted by RNM GS3
Poor quality history, poor lease residuals, not enough dealerships in US.

Having said that - they are gaining sales every year and may be #3 soon if Lexus stays still.
This is really it. Audi's reputation in the US is still on the mend from the 80s and the 5000 disaster. Ask your parents where the saying "I'm Audi 5000" came from to denote that one is leaving quickly LOL. Fewer dealerships. Their leases are terrible, and thats a BIG one. I would be in an A6 right now if the lease was similar to Lexus/BMW/MB. $200 a month more because of poor residuals.
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Old 02-01-14, 06:53 PM
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IMO design is too sophisticated for many. most models doesn't have a 'look at me!' swag.
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Old 02-01-14, 07:28 PM
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I never really noticed audi until the Transporter movies made them cool.
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