Audi Sets Tentative North American Diesel Debut for 2008

GENEVA – Audi AG expects to sell its diesel-powered Q7 cross/utility vehicle in the U.S. by 2008, the auto maker says.

This move represents an aggressive powertrain-development push for Audi, which already has committed to a Q7 hybrid-electric vehicle launch in the same timeframe.

Critical to the diesel’s rollout is the development of an exhaust after-treatment system, Wolfgang Hatz, executive director-powertrain development, tells Ward's.

Audi engineers are about two years away from nailing an execution of after-treatment technology that, in concert with low-sulfur diesel fuels, will enable the European Q7’s 3.0L V-6 diesel to meet stringent U.S. federal emissions standards and, more importantly, those in California.

Thanks largely to exhaust gas re-circulation technology, the smooth-running engine already meets standards in 45 states, Hatz says. But the projected return on diesel-powered Q7 sales in those markets is insufficient to warrant a launch at this time.

Audi Q7 3.0L V-6 TDI

“In the end, it has to be 50 states,” Hatz says, noting California accounts for 40% of Audi’s U.S. sales, the largest share of any market outside of Europe.

Through February, Audi’s ’06 model-year sales were up 10.8% in the U.S. Deliveries totaled 34,300, compared with year-ago’s 30,951, according to Ward's data.

Related document: U.S. Light Vehicle Sales by Brand and Group, February 2006

“We have decided to bring the diesel to the U.S. when we are fulfilling all emission regulations,” Hatz says. “Priority No.1 is (the) Q7.”

The turbocharged diesel belongs to a new family of V-engines and features piezo injectors. It generates 230 hp and 369 lb.-ft. (500 Nm) of torque, which is available at 1,400 rpm.

The CUV, which shares a platform with the Volkswagen Touareg and Porsche Cayenne, is expected in U.S. showrooms by June, a spokesman for Audi of America Inc. says. To date, Audi dealers have taken about 1,000 orders, he adds.

The auto maker expects U.S. annual sales of about 35,000 units.

The Q7 already has launched in Europe. Production for the North American market began last month. The CUV is built in Bratislava, Slovakia, alongside the Touareg and Cayenne.

The Q7 starts at $49,900.

[email protected]