Audi of America will remember August as the month when it recorded 600,000 sales of its U.S.-market A4.
Through July, the auto maker was 620 units short of the milestone, while averaging nearly 3,000 A4 deliveries per month this year, according to WardsAuto data.
The car was launched in the U.S. in 1992.
Growing demand coupled with inventory woes, compelled Audi to release its ’12 A4 in July, the auto maker says.
“We normally wait until the end of the summer to release our next model-year vehicles,” says Barry Hoch, Audi of America product-planning manager-A4, A5 and Q5.
As of July 31, Audi had a 25-day supply of A4s. That’s the lowest of any nameplate in its car lineup.
Underscoring the auto maker’s need to acquire production capacity for North America, Hoch tells WardsAuto that getting more stock is an exercise in addition by subtraction.
“They say, ‘You want more A4s? We’ll build fewer Q5s,” he says of discussions between Audi of America and its Germany-based parent.
“That, right now, is one of the biggest limiting factors to our sales volumes.”
Audi is expected to announce its plans for a North American plant within nine months.
But volume is not the auto maker’s primary consideration.
“Our overall goal, as a manufacturer, is to be the No.1 premium brand,” Hoch says. “That doesn’t necessarily mean sales volumes. That means image, prestige, safety, buyer opinion.”
While Mercedes-Benz and BMW represent Audi’s primary competition, he claims the brand also is stealing customers from makes such as Acura and Honda.
Audi is on a trajectory to improve its lot among U.S. buyers, says Alexander Edwards, president of Strategic Vision, a California-based auto-industry consulting firm.
While the BMW 3-Series and Mercedes C-Class are still the “go-to” vehicles in the A4’s competitive set, the entry-level luxury car is “getting there,” Edwards tells WardsAuto.
The A4 attracts consumers who are, on average, 45 years old, he says. This compares favorably with 47 years for the 3-Series, 52 years for the C-Class and 55 years for the entire segment.
The ratio of A4 sales, sedan vs. Avant, is 90:10, Hoch says, noting 20% of the model’s buyers opt for the performance-oriented S4 version.
Enhancements for ’12 largely consist of appearance packages as Audi readies for the A4’s freshening in ’13. Hoch says the coming upgrades will enable “head-to-head” competition with the C-Class coupe, which is new-for-’12.
He also promises a ’13 RS5 coupe that will compete readily with the Mercedes C63 and BMW M3.
“We should be in for a good fight,” he says.
Hoch notes with relish the pending U.S.-market introduction of 4-cyl. engines by Mercedes and BMW. Audi’s I-4s, several times named among Ward’s 10 Best Engines, have been the hallmark of the A4.
“They’re basically following in our footsteps,” Hoch says.
Mercedes will equip its C-Class with a 1.8L turbocharged I-4 late this year, while BMW offers the new 2.0L TwinPower turbo in its Z4 roadster and 528i sedan. BMW does not confirm the engine will migrate to the 3-Series, but it has said the 2.0L TwinPower will be available in several applications.
