Vibrant Audi reveling in booming sales<\/p>\n
By Alexander Corne<\/p>\n
Audi may not be familiar to Indonesian car buyers yet, but it
\nsoon will be.<\/p>\n
Internationally, Audi is rapidly becoming regarded as a peer
\nof its more well-known German competitors, Mercedes Benz and BMW.<\/p>\n
After separating its sales and marketing operations from its
\nparent company, Volkswagen, the revitalized prestigious German
\nmarque is reveling in booming sales.<\/p>\n
In Germany, its strongest market, sales are now neck and neck
\nwith BMW, up an effective 32.7 percent. Mercedes-Benz has lost
\nground to both Audi and BMW this year.<\/p>\n
Worldwide, Audi's sales rose 22.4 percent this year to just
\nunder 400,000 cars, driven mainly by the rapturous reception
\ngiven to the new A4 sedan, which is set for an Indonesian launch
\nby the Indomobil Group for the middle of next year.<\/p>\n
This rise in sales and equality in the battle for sales on
\nhome ground in Germany, with competitors such as BMW, will help
\nthe marque establish its credentials as a serious player in the
\nIndonesian luxury car market.<\/p>\n
In the past, Audi's biggest failing has been its inability to
\nsquare up to BMW and Mercedes-Benz in markets outside Europe,
\nwhere it is not so well known and where its Volkswagen links were
\nmore of a hindrance than a help in establishing and enhancing its
\nexecutive appeal.<\/p>\n
The most dramatic failing though, has been the persistent low
\nresale values of Audi vehicles, and this is now the area of main
\nfocus for Audi's marketing men.<\/p>\n
In new markets such as Indonesia, armed with an independent
\nmarketing policy, Audi hopes it will avoid the poor resale values
\nit suffers in Europe, and establish the brand as a high quality,
\naspiration marque, which will then provide demand not only for
\nnew cars but also for used ones.<\/p>\n
\"Audi is in the process of transformation, aiming to achieve a
\nbetter balance, one of technology and market\/customer
\norientation,\" the company's board member for marketing and sales,
\nGraham Morris said.<\/p>\n
The company has a new global slogan, \"One name, one standard,
\neverywhere\", which indicates not only its global approach to
\nsales; expanding markets in Asia, notably in China; and its full
\nscale return to the Unites States, where sales this year are up
\n50 percent at 18,000 cars.<\/p>\n
The single standard hints at Audi's rumored future
\nmanufacturing plans for the United States, as well as its plans
\nto export A4 sedans from its South African factory.<\/p>\n
There are also longer term plans to export cars from China,
\nwhere VW-Audi has been building the older C3 Audi 100 for several
\nyears.<\/p>\n
Audi has been in control of its own marketing and sales
\ndestiny for only a short time, but moving out from under VW AG's
\nwing has boosted enthusiasm and energy within the company.<\/p>\n
Shedding the dowdy, conservative and purely technical focus of
\nthe recent past, Audi wants to add greater emotion to the marque
\nwhich made fully galvanized body shells, quattro four wheel
\ndrive, the short lived Procon Ten safety system and, more
\nrecently, aluminum space-frame technology the defining moments of
\nits previous slogan Vorsprung durch technik (advancement through
\ntechnology).<\/p>\n
Morris promised Audi's new emotion would add passion, soul and
\nmore humanity to customer services, as well as the product.<\/p>\n
Audi's product plans for the next five years are testament to
\nthe new vigor within the company.<\/p>\n
Just four weeks ago the TT and TTS show-stopping concept cars
\nfrom the Frankfurt and Tokyo motor shows were given production
\napproval by the board, while the A3 hatch is to be launched in
\nMarch next year, opening up a lucrative and high volume new
\nmarket to the company.<\/p>\n
Further away is the much talked about A2, a smaller version of
\nthe A8, which utilizes the weight saving technology of the
\npioneering flagship of the marque.<\/p>\n
While Audi was the prestige brand of the Volkswagen Group, it
\ndid not dictate its own destiny beyond the factory gates. Now it
\nhas the power to select dealerships, review customer relations
\nand place its product more accurately in specific markets.<\/p>\n
Exports are high on Audi's agenda, with about 60 percent of
\nthe proposed 100,000 A3s built every year leaving Germany.<\/p>\n
Production outside Germany is also a key focus, with China,
\nSouth Africa and a proposed plant in the United States aiming to
\nspread Audi's global coverage.<\/p>\n
The company is planning to expand its impact in Asia
\nconsiderably, and hopes to have kit assembly plants going in
\nMalaysia and possibly Indonesia within the decade.<\/p>\n
However, the company realizes that its lack of exposure in
\nAsia means that its sales lag behind its obvious German rivals.<\/p>\n
As one executive told Automotive Business: \"We have no image
\nin Indonesia. We are practically unknown, so we will have to
\nstart at the beginning.<\/p>\n
\"In some Asian markets we are known because of our association
\nwith Volkswagen, but we hope that we can establish a separate
\nidentity of our own and raise an image comparable to that of the
\nother German carmakers.\"<\/p>\n
The quality of the company's products is in line with its
\nGerman rivals, but its lack of image must be, and will be,
\naddressed.<\/p>\n
According to Morris, Audi's technological strengths will lead
\nthe company forward. He wants to add emotion to the mix of
\ntechnological advancement within the company's European image.<\/p>\n
Audi is one of Europe's pioneering carmakers. It has
\nsuccessfully developed a race and rally-proven four wheel drive
\nsystem, which adds considerably to traction, while its research
\ninto turbo charged diesels has produced some of the world's
\ncleanest burning, more powerful and frugal engines.<\/p>\n
It has also ensured that all its technology can fit into most
\nof its cars. The modular approach means the A4 and A6 medium and
\nlarge cars can share engines, both different types and sizes, two
\nand four wheel drive transmission, as well as internal equipment
\nlevels. Both A4 and A6 also have station wagon variants.<\/p>\n
The ranges also overlap, so the top A4s use similar equipment
\nto the lower spec A6s, and the top A6s share engines and trim
\nwith the A8. The 2.8-liter V6 engine can be found in all three
\ncars, as can the quattro four wheel drive system.<\/p>\n
In some markets, Audi offers the quattro four wheel drive
\nsystem as an option on every model.<\/p>\n
The mid-sized A4 sedan is likely to go on sale in Indonesia in
\nthe middle of next year.<\/p>\n
The vehicle's specification is yet to be confirmed, but the
\nprice is likely to be in the Rp 175 million bracket.<\/p>\n
The car has been lavishly praised by the international
\nmotoring press and the absence of a luxury brand image in
\nIndonesia appears to be the only obstacle that could prevent it
\nfrom succeeding.<\/p>",
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