Re: Audi Price Cuts

[John Greenstreet <jgreenst@motown.ge.com>]

> From quattro-owner@swiss.ans.net Thu Oct 13 10:18:49 1994
> From: Andrew Duane USG/PE <duane@zk3.dec.com>
> Subject: Re: Audi Price Cuts
> To: quattro@swiss.ans.net
> Date: Thu, 13 Oct 1994 09:49:40 -0500 (EDT)
> X-Mailer: ELM [version 2.4 PL20]
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> Sender: quattro-owner@swiss.ans.net
> Reply-To: quattro@swiss.ans.net
> 
> Hairy green toads from Mars made Franklin Fasano say:
> 
> > A friend tells me that if the recent price cuts fail to improve US sales, 
> > Audi intends to pull out of the US market.  He claims to have read this in 
> > one of the car mags, but couldn't find the article when I asked for it.. 
> > Can anybody confirm or deny this.
> 
> I can't specifically say, but rumours of VW and Audi pulling out
> of the US market fly around constantly. Every time sales dip for
> a while, someone hints that they may pull out.
> 

Absolutely true.  I remember reading before the introduction of the new
100 Series in 1992 that Audi would pull out of the US market if it
didn't sell well.  Thanks in part to being trashed by Consumer Reports
(and in part to increases in MSRP) sales have decreased every year
since its introduction.

But Audi is still here.  And they claimed that they were happy with the
level of sales in 92-93, but for '95 they obviously don't want to hold
out in getting on the price-cutting bandwagon with Mercedes et al.

Remember that even with sales of 16,000 cars a year, that's still quite
a few cars, all resulting in extra profit since they're sold through
VW's existing dealer and distribution channels.

If one looked at the bottom line of Lexus and Infiniti as separate
entities, they would be deeply in the red due to their unprecedented
startup costs and advertising expenditures: Lexus spends way more on
marketing than even Cadillac, but sells substantially fewer cars.  Many
Lexus francises, once coveted, are now up for sale.  Things aren't so
bad that there would be any point in pulling out now, but when Mazda
looked at what had happened, they clipped Amati's wings before it even
got off of the ground.  (is Amati Miata spelled sideways?)

Many industry insiders think that Audi will do well this upcoming year,
and their francises are correspondingly pricey.

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John Greenstreet, Senior Engineer           (jgreenst@motown.ge.com)
Martin Marietta Government Electronic Systems    Moorestown NJ 08057
WPI Class of '75, Temple Class of '94

My new car history:
  1975    1978    1982       1986        1989      1992      1995
   VW ->  Audi -> Audi  -> Mercedes -> Mercedes -> Audi -> Mercedes
Scirocco Fox GTI  4000S    190E 2.3    190E 2.6    100CS     S320

POSSLQ's* new car history:
         1978       1981       1985      1988        1990     1993
       Triumph ->  Toyota ->  Toyota  ->  VW    ->   Audi  -> Audi
       Spitfire    Tercel     Corolla   Jetta GL      80      90S

*POSSLQ = Person of Opposite Sex Sharing Living Quarters
Note: All Audis and Mercedes above were sold to friends or family.
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