[BiturboS4] RE: A4 profits

[Edwards, Dave]

Actually I agree, so I'm doubting what I read now. It's bugging me so I want
to find out where I got the info from.

On thing is true though that manufacturers will often produce loss-making
cars for marketing reasons. In the end they either end the line or re-vamp
it. This certainly happened to Ford in Europe with their larger coupes.
First they had the Probe which didn't sell, then they replaced it with the
Cougar which also didn't sell. I'm sure they will keep trying, just to keep
propping up the image of the company.

-----Original Message-----
From: Kjos' [mailto:fastwheels3 at attbi.com]
Sent: 25 October 2002 03:43
To: Edwards, Dave; biturbos4 at audifans.com
Subject: Re: [BiturboS4] RE: BiturboS4 digest, Vol 1 #154 - 4 msgs


Interest rates for many cars are zero percent in the USA. Try to beat that!
Even BMW offers 1.9% financing these days.

On A4 profitability: I always thought that the BMW 3 Series and the Audi A4
lines were the heart of the profits for those companies. Why would MB invest
so much in the C Series if these entry level luxury cars were not highly
profitable? There was no other incentive to lower their image by bringing
out relatively cheap cars other than high short term profits.

John Kjos

----- Original Message -----
From: "Edwards, Dave" <Dave_Edwards at iOra.com>
To: <biturbos4 at audifans.com>
Sent: Thursday, October 24, 2002 10:02 AM
Subject: [BiturboS4] RE: BiturboS4 digest, Vol 1 #154 - 4 msgs


> Well Matt I'll admit I can't justify that. I read it somewhere and
believed
> it 'cos most of the major car manufacturers make losses on the cars
> that
are
> in a competitive markets, making up for those losses on sales in niche
> markets because they can charge higher prices.
>
> However don't get too excited by Audi's success in the US. The
> revenues
from
> US sales only accounted for 12.8% of group sales (source: Audi
> financial report). The other figures are a whopping 32% from Germany
> (where sales
are
> seriously down), and 48.7% from the rest of Europe, which is similarly
down
> (except the UK that is, where interest rates are so ridiculously low
> that people are borrowing like there's no tomorrow).
>
> Dave
> --__--__--
>
> Message: 3
> Date: Thu, 24 Oct 2002 07:31:41 -0700 (PDT)
> From: Matt twentyV <matt_20v at yahoo.com>
> Subject: Re: [BiturboS4] RE: A4 coupe
> To: "'biturbos4 at audifans.com'" <biturbos4 at audifans.com>
>
>
> > Audi already make a loss on the
> > entire A4 series,
>
> Huh?  Its the car that brought them back from death
> in the US.  Please justify your assertion, I don't
> buy it.
>
> Matt
>
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