A refutation of Edmund's Review of A6

[ScharfR <ScharfR@aol.com>]

In a message dated 97-12-18 18:09:51 EST, the Edmunds review of the A6 is
quoted thusly:

<< At the bottom of the review, they said:
 "For this car to seriously challenge BMW’s 5-series in the United States,
 three things must happen: a manual transmission must be made available to
 the enthusiast driver, the price of the base car must fall, and a V-8 model
 must be offered in showrooms. Only then will Audi have a chance at beating
 the masters in Munich." >>

I find this absurd.   But before I rant, lets do the numbers.  On an
admittedly limited basis, the new A6 seems to be doing just fine against the
528i.  With a very constricted supply, Audi sold 1,232 new A6s in November.
With ample supply, BMW sold 1,939 of the 528i.  Considering the relative sales
rates of the two companies in the U.S. (approximately 3:1 favouring BMW),
that's pretty darned good for the A6.  I'll wager that it gets even closer in
December and months to follow.

Now, taking Edmunds "three things that must happen" point-by-point, here are
my personal thoughts on why they are victims of self-induced cranial-anal
insertion (all under the caveat that the A6 2.8 -- NOT the S6 -- is a luxury
car aimed at an audience which appreciates refinement, luxury, security,
outstanding road manners good value ...).  

1.)  A manual transmission?  Get real.  A waste of time and money for the A6
2.8 in the U.S.  Even BMW, with the 5-series, sells manual transmissions in
low single-digit percent quantities in the U.S.  At the $35-45,000 price
point, there is virtually no other 4-door sedan offered in the U.S. with a
stick.  Is it because every luxury car manufacturer except BMW is too stupid
to recognize and satisfy this latent demand?  No.  There is practically no
latent demand from new-car buyers for manual transmission luxury sedans.  Just
about every luxury import manufacturer has tried it; just about all have found
no market.  Need we repeat the lesson?

The key point here is "new-car buyers."  Anybody who buys used cars -- after
significant depreciation -- may lament this, but that is the secondary
audience.  Nobody invests billions to build cars for the used car market.  If
it can't be sold new, why bother to build it?  Check with most BMW dealers and
you'll find that the car they least want to have in inventory is a stick shift
528i.  Why?  Because it is the slowest-selling model in the 5-series range, it
requires the most sacrifice of their margin to finally sell, and it stays in
inventory the longest (= high carrying cost/low profits).

Think about the development effort and cost involved to certify a manual
transmission A6 2.8 for the U.S. market.  Then think about the trivial sales
prospects.  It's a simple problem of division. Using numbers with orders of
magnitude that my experience tells me are correct, it starts with $XX,000,000
for development, certification, training, parts and service support; divide
that by the anticipated volume over four years -- lets assume 1,000 cars.
Answer?  $XX,000 per car to amortize, before any return on investment.  Then
think about whether Tiptronic doesn't answer the need for a manual
transmission for a large number of people.  Finally, think about the other
priorities that could be developed if you _don't_ develop a stick.  Save the
money and put it into other areas with more bang for the buck.  The only
sensible application for a manual transmission in this class would be in an
S6.

2.)  Lower the base price?  Get real again.  The A6 is already $6-8,000 LESS
than a comparably equipped 528i.  If you have the $38,900 cost-of entry for a
bare-naked, vinyl-seated, non-metallic painted, no-sunroof, plain-jane 528i,
then you can afford the standard A6 ($33,750) with it's roomier wood-trimmed
interior and metallic paint PLUS the options of quattro, leather, glass
sunroof, memory power seats, all-weather package and 16" alloy wheels.  Geez.
Does somebody really think that the A6 2.8 is overpriced compared to the 528i?

3.)  A V8?  Sure.  Good idea.  If the S6 comes, that would be an appropriate
engine.  But for reference, let's not forget  that the 540i (the point-of-
entry for 8-cylinders in the BMW 5-series) starts at $50,500!  And guess what?
The manual transmission version (a 6-speed) costs an additional $2,800.   I
doubt that, when the time comes, it would be a problem for Audi to add
equivalent performance at a substantially more attractive value.

My final point; I'd suggest that the A6 range is a work in progress.  Consider
the A4.
-  A single well-executed model in year one (A4 2.8).
-  Two excellent versions in year two (add the A4 1.8T).
-  An upgraded 6-cylinder engine in year three plus the Avant.
-  Maybe an S4 in year four?
Give the boys at Audi a bit of time.  The other Bavarians don't shoot all
their powder in a single year either.

End of rant (but still a bit worked up).