[urq] Audi parts for older cars
colin cohen cco
ccohen5 at compuserve.com
Wed Aug 2 12:38:06 EDT 2006
I have been reading the posts on this for a few weeks now and have noticed that there is one thing missing in all of the rants and raves: there is a certain set of economics associated with supporting old cars that are not usually affordable by either the customer or the OEM. Firstly it takes a geographic concentration of vehicles to justify holding parts to support them and a volume demand over a predictable period. No one I know has studied the number of Urqs on the road, on which continents but it is clear to me from my 30 years in aerospace that there are relatively few of the Urqs still producing dealer initiated parts demands in the context of production requirements.
Once a vehicle goes out of production, the economics of building parts for spares use, becomes very hard to support, absent premium pricing. Look at Porsche 928 parts or Mercedes 280 SEC (350 or 6.0 models) in the same context. Most of the cost of these parts is in the set-up and test of the tooling needed to make the parts. Over time this tooling gets lost or wears out and the sub contractors who make the parts for OEMs require substantial up front investments to go back into the fabrication business for these parts. However few OEMs have any idea what the demand was (that depleted their stocks) or could be if the parts were available at any range of prices. That some manufacturers still get the parts made without this knowledge is wonderful for those owners who may think nothing of paying $2,000 for a distributor cap but I doubt that even at that price the OEM is making any money on its design, tooling, fabrication, production and distribution costs given the tiny volumes associated with these parts.
Then you get to cosmetic items, which vary between the different areas the a car was originally sold. That Audi is dumping, selling off or otherwise getting out of an inventory of RH drive Urq components has to be an economic necessity in the context of the almost non-existent demand outside of the UK. Of course where the Urq shares parts with other models the viability issues change but the volumes (as compared with Toyotas or Fords) are still miniscule. Some on this list and elsewhere may believe that they could develop, engineer, fabricate and sell parts for the Urq at what they think is a reasonable price - and if so why cant Audi? To them I would say that their cost structure is a tiny proportion of the "employment-for-life-nanny-state" of the German Republic and if their product liability risk is small enough, they should go ahead and do it. For Audi to take risk on putting their name on a "garage produced" product would be something its management would be unlikely to do for anything except liability free competition use. Certainly not for US distribution where the plaintiff's bar has already had one major bite on the Audi apple.
In conclusion is would say this to all of us Urq owners - we are in the unfortunate position of having a car that is neither a collectible nor a commodity. If the numbers on the road decline to a level that the car is genuinely rare (no idea of the numbers for this) then the few remaining owners may be motivated to support a cottage industry to build parts the way the Ferrari, Masers, and even older production cars like Alfas or Euro Fords are supported. By then the Urq will have reached "Vintage" status (at 25 years), which will enable it for events that for the moment keeps it out of the possible collectible status. Until then we are just part of the gearhead community owning a vehicle recognized by very few for its unique capabilities. They will become more and more expensive to maintain (like all cars other than some 'Merican Iron) and eventually may disappear for lack of economic viability in either our hands or those with the means but not the interest to own one. This has happened to many cars and while its a pity that Audi does not seem to care whether or not it occurs to the Urq/80/100/200, they have more important (to Audi, VW and its shareholders) matters on their plate in the context of the extraordinary efforts that have to be made to support small volumes of non-collectible vehicles. That Mercedes does this, is remarkable but I am not sure that anyone on this list could live with those prices. I just read of a 280 SL that was rebuilt at a cost of $100,000. It was sold at that price too but its market value is around $80,000 in Condition 1. The Condition 3 cars can bought for $50,000 but a restoration is till going to cost north of $50,000 and few will do that.
Colin
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