Audi Pondering Just How Much to Expand

Audi execs are concerned their market strategy may be too narrow.  Audi has been pushing hard over the past ten years to match wits with Mercedes-Benz and BMW.  Thanks to racing dominance, beautiful styling on its productions, and an esteemed rep for interior refinement, Audi’s gained the highest level of status in its century of existence.  But now Audi management is worried that BMW’s expanded offerings, notably in North America, are pushing it further behind.  In just over the past two years, BMW has introduced the 1 series, the X6 crossover, the 3 series diesel, a 7 series update, and a new Z4 roadster to US audiences.  BMW isn’t letting off there: it’s looking to break-in the 5 diesel, roll out an X6 hybrid, and widen the 1 series lineup.

Audi hasn’t rested on its laurels in the US over the same period, with an improved A4, new A5, and the R8 sports car.  Audi does selectively offer the Q5 TDi and wants to spread its US diesel offerings to include the A3 and A4.  Audi’s VW owners want to test the diesel waters some more before committing to the effort.  VW has the Jetta TDi and will be releasing the Golf diesel within the next two years.

This isn’t the only setback: Audi wants to get its A1 subcompact out as soon as possible, but debate’s raging over just how wide the equipment range will be.  There are some hoping to adjust the A3 to properly combat the BMW 1 series from its somewhat restrained form; but broadening the A1 arsenal could threaten A3 sales.  Audi management is also uncertain on how much to invest in hybrid technology over the traditional diesel.

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