Audi Confident of Another U.S. Sales Record in 2015

A continuing rollout of new product, plus an expanding and investing dealer network, is expected to keep momentum going for Audi of America, which forecasts another record sales year in the U.S. in 2015.

Volkswagen Group’s rapidly gaining luxury arm recorded a new high in 2014, as an 8.7% gain in December daily sales to a total volume of 19,238 pushed calendar-year totals to 182,011, a 15.2% jump from 2013.

Audi of America has set a target of 200,000-unit sales annually by 2020, and while President Scott Keogh is sure “we’re going to get there a lot sooner than 2020,” he declines to predict the bogey will be reached as early as this year.

“We’ll take what the market gives us (in 2015), in a healthy fashion,” he says during a call with media to discuss the brand’s performance. “Can we sustain the current (level of) growth? Yes, I think we can. Because when you look at the last five years, we haven’t had what I would call crazy (growth) spikes.

“And we’re not just counting on one model or one region,” he adds. “It’s been balanced. And that’s what gives me confidence that we can sustain this growth.”

Being counted on to drive sales gains this year will be full-year availability of the new A3 entry-level sedan and Q3 CUV, plus refreshed versions of the A6 and A7 upper-end cars on the way.

Even more new product is in the pipeline, Keogh notes, pointing to the new TT coupe due later this year and the revamped Q5 that will be coming from Mexico in 2016, plus new R8 sports car and new-generation A4/A5 models in the works.

“We are going to have a staggering product offensive pending,” he says.

Also driving growth is Audi’s expanding dealer network, which has helped increase brand sales by double-digit rates in each of four regional markets nationwide.

Chief Operating Officer Mark Del Rosso notes that new retail points will be added strategically in hot markets, including in and around New York City and in Kansas, Florida and Texas.

In addition, he says, dealers are investing heavily in the franchise nationwide, citing one project in particular in New Jersey that will see a new $32 million, 73,000-sq.-ft. (6,782-sq.-m), 28-car showroom built on a 10-acre (4-ha) site that also will include a separate 21-car showroom for pre-owned vehicles.

“I can’t contain my excitement,” Del Rosso says. “Clearly we’re giving our dealers a great deal of confidence.”

For December, Audi sales gained 8.7% daily (one more selling day this year than last) on a volume of 19,238 units. Trucks, down 0.4% in December, were continued strong sellers for the brand, accounting for 38.1% of the mix for all of 2014.

Despite a drop in December, the Q5 CUV is now Audi’s top seller, with sales up 5.1% for the year. Q7 deliveries gained 15.9% in 2014, despite nearing a sellout phase as a new version gets set to bow next week at the North American International Auto Show in Detroit. Days’ supply of the recently launched Q3 model is at just 17, Keogh notes.

“I see SUV (sales) continuing (to grow), because all I have to do is look at the days’ supply for even older models,” he says.

In contrast to Audi is the performance of the Volkswagen brand, which saw sales continue to lag in December, falling 3.7% daily from like-2013 on a volume of 34,058.

The only VW model to show positive results in calendar 2014 was the Golf line, which gained 8.9% in volume to 33,674 units. All other vehicles, except the Jetta (down 1.8%) suffered double-digit drops during the year.

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