Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see May lease deals!
Options
Popular New Cars
Popular Used Sedans
Popular Used SUVs
Popular Used Pickup Trucks
Popular Used Hatchbacks
Popular Used Minivans
Popular Used Coupes
Popular Used Wagons
Comments
5 = 12,131
E = 10,908
STS = 9,841
GS = 9,548
M = 6,711
A6 = 4,629
RL = 4,084
Total = 57,852
Considering that brand new E's, GS's and M's were introduced in March, it's quite a testiment that the "old" 5 has still outsold them all.
I don't think Audi is fretting over those numbers... Assuming last year there were more incentives to purge their inventories to make way for the "new" A6, the -4.7% loss on month-to-month (May '05/May '04) is inconsequential. The year-to-date for the new model is more important to corporate. (And the numbers I am looking at are only for the US, the EU is eating up these cars...)
I would be more concerned about the TT figures, down 44.2%.
Check out Fourtitude.com for the sales figures.
Jeff
The average for the year is about 1,400/month. Compared to the competition it's not doing well. The last time the A6 was redesigned in the late 90's, it was selling in much greater numbers, on average it's first few years it was doing about 2 to 3K/month in the US.
I'm not that surprised by the STS. There's still an entire generation of people that wont consider anything but American, and since the LS is basically a joke at this point, that makes it "which cadillac would you like to buy today, sir?" How did the Seville do during its life sales wise? It didnt exactly light the magazines on fire, but I certainly see plenty on the road, and I'm willing to bet most Seville owners would be happy to upgrade to an STS. Also, the STS enjoys fleet sales that really arent available to other cars in the class.
Do you have the latest sales figures month over month for the LS? I didn't see them in the list.
The 5 really took a beating. The only language they apparently understand at BMW. But one month does not a trend make.
With all the negative feedback on iDrive from consumers and auto rags, a BMW executive came out recently with "iDrive is here to stay."
However, one must take into account the production numbers. If Audi is only producing 1400 cars/month for our market, then their numbers are looking pretty good from their inventory standpoint. If they are producing 3000 cars/month, then they will be experiencing some serious backlog. They don't have to outsell Lexus, Infiniti etc. unit for unit, as long as their bottom line is in order... I find these discussion somewhat futile when ALL the facts are not disclosed.
As you stated, there is still a strong and loyal domestic car following across much of rural America. Lots of pickups and barge-like SUV's here, in addition to Cadillacs. Not as many, but there are also some Lincoln LS's moving off the lots here.
The nearest Acura dealer is 120 miles away. So I have the ONLY RL in my community of 100,000 people. Talk about exclusivity!
Although Acura sales were up +9%, total Honda sales dropped -14% in May. Honda still only averages about $400 per car on incentives. Toyota's average is close to $1000, and the domestics are over $4500 per vehicle in rebates. Interesting announcement by GM to extend employee discounts to any consumer, in their attempts to distance themselves from these huge incentives. Not sure if the gambit is going to work.
The $599 lease on the RL (with around $3500 down) is not that great of a deal, relatively speaking. They could sweeten the pot some more if they really felt they needed to. It will be interesting to watch as we approach the release of the 2006 RL.
When I was considering an Acura, I was told by both their 800 number headquarters and by a Chicago Acura dealer that if you have an Acura and live more than about 70 miles from an Acura dealer, any local Honda dealer will service your car and honor your warranty.
Whether Honda mechanics know what's what about the complicated RL, I don't know, but it's reassuring that warranty work is as close as your nearest Honda dealer.
They should be the same, but I'd bet the E55 is .2 secs faster due to being a little lighter.
M
Only one model year older.
M
The RL does share some basic componentry with the Accord, and I'm sure that any Honda shop would be familiar with the 3.5L engine. Wether they could fix some of the more complicated electronics or SH-AWD parts, that I'm not sure about.
Manufacturer's supply the necessary amount of products based on demand. It's not like Audi is Ferrari, where they purposely keep supply levels way below demand levels.
I was quoted $4300 off MSRP in May and still didn't pull the trigger yet; I know it can be had for even less if I want it. Yes RL sales went up in May vs. April; however it took drastic sales price drops and Acura Lease Incentives to do it.
The NY Times published an amusing survey on the car-buying habits of Republicans and Democrats awhile back. I think Subaru has now replaced Volvo as the most heavily Democratic car.
I was merely offering observations about the buying preferences of those in rural, mostly blue collar, mostly Caucasian, generally conservative America, in response to someone asking who the heck is buying all these Cadillacs.
I didn't mean to generalize that Republicans buy domestic while Democrats buy foreign.
Wow. I'll relay that information to my Republican Mercedes/BMW buying friends.
This report showing Audi has slipped to the bottom of the heap has to be particularly galling (to Audi and its most loyal fans) no matter how we try to spin it.
Were I a completely objective observer (I'm not) and at least somewhat aware of the concepts of "retailing" (I'm at least an amateur at this), I would think that the Audi being a newer model than the Acura, BMW and Mercedes, that it ought to be able to "lead" something.
But last month, the sales were next to last and this month they slipped to last place. The "new" Bimmer 5 was barely hitting the dealers' inventories in May, so you can perhaps understand the decline in sales for BMW. Further, there has been a "pause" in car sales perhaps precipitated by gas price concerns -- but one has to acknowledge that this is less of a factor when one is talking about $50K automobiles.
The Lexus is very new and the Infiniti is pretty new, but fundamentally the Audi is not a "stale" car -- and it has received tremendous accolades: "The Best Car in the World" kind of thing, don't you know?
Yet with its newness, accolades and apparent competitive position it can't even lead the RL which for reasons I am at a loss to explain has somehow apparently become so yesterday.
The Audi -- to read the press releases available all over the web, and at the bricks locations, is one of the two "IT" cars (the other being the "M"). Yet the Audi cannot seem to gain enough momentum to propel it out of last or next to last place.
Being somewhat of a student of economics (and to support some of the above comments) this simply seems to be a demand issue. For I am pretty certain that if 2,600 willing buyers would have shown up in May that Audi would have been happy to "take their money." There is no deliberate action meant to "cap" sales at 1,300 or whatever. Supply could be the issue, but it is highly unlikely, that is.
The Audi for whatever reason is simply not competitive. Either it needs to find the correct price point to stimulate additional demand or the value proposition needs to be 'splained via the marketing machine.
My belief is that we have a failure to communicate the value proposition -- unfortunately, that simply means (for the short term) that Audi needs to be, once again, perceived as the high-value Premium Class car, rather than the high-priced Premium Class car.
Audi did this previously and the results were similar. In 1996, I bought a new Audi A8. This car was well into the $70,000's as I configured it (Pearl White paint even). It did have a 5spd auto, but not a tiptronic. Within one model year cycle the content went up and the price went down -- imagine my chagrin when I looked at the 1998 and 1999 A8's that in some cases were $10,000 less than I paid and with higher content.
This, IMO, is where Audi sits today. The 2001 - 2004 Audi A6's were relative bargains (and remember how terrible the economy was after 911 and the bubble bursting, etc etc etc -- not to mention fears of deflation, recession and some even hyper ventilated the term depression?) Moreover, at that time Audi still had quattro as yet another "Audi advantage."
We are seeing in some respects the squandering of Audis distinctiveness coupled with bringing out an apparently well liked car that underperforms the last year's crop and yet has the temerity to ask for a higher price.
I also agree, one month does not a trend make. But this is more like multiple months where the Audi languishes at or near the bottom of the class.
Audi cannot possibly be pleased to see its American unit sliding when elsewhere things -- relatively speaking -- are hunky dory (check out the global performance and then contrast it with the NA performance). Audi is finding it difficult -- apparently -- to compete in our market.
But that schnoz is an issue, for sure.
The B9 Tribeca also faces a similar prospect, due to its pug nose. Besides the fact Subaru saddled it with a very silly name to match its funny face. Somebody flunked Marketing 101.
I know some people like it, but I just think of a giant fishhook and worm dangling in front it.
Okay, enough "carping" about the grille. (Well Rich545 started the bad jokes with the Forrester/Tree hugger line).
Tribeca is also a section of New York City. The "Triangle Below Canal Street."
It's also an old Kenny G song.
But not an SUV.
That happens to look like a pug.
It's got big pointy teeth.....
It can jump.......
Look at the bones!
(with thanks to Tim the Enchanter--speaking of names that don't exactly inspire awe)
As for the sales, I do believe that the performance numbers for the Infiniti M are definitely lifting that model over the A6. I would rather have the M's performance in the A6, but have come to the conclusion that the 6's interior and ride is better suited to my work and lifestyle.
Mark, I agree with your rational regarding the A6's sales numbers. Perhaps this will be the impetus for Audi to offer more attractive leasing deals AND package more options together at a reduced price. Hopefully soon, I will be purchasing this Fall. We shall see...
On the other hand, I am one of the few on these boards (or so it seems from the postings) who really likes the appearance of the 5 and 7 series (yes, both the front AND the back). Many here must have had the same reaction to the BMW's restyling that I did when I saw the A6 grille.
As they say, different strokes...
Hold the line with respect to the MSRP.
Simplify the packages.
Don't even consider charging extra for keyless ignition ($750? what are they smokin') or voice activation ($350 is a little easier to take, however.) Make these things standard.
Do whatever it takes to get the performance up to the rest of the crowd -- none of this "the 3.2 was meant to replace the 3.0, not the 2.7T S-Line!" Right, er, sure, sure it was and when I tell my wife, Morgan Fairchild, about this. . . .
Improve the performance, it IS an issue at this time. Not for me, not too much, but man o man, Audi gets hammered for the leisurely pace that the new A6 3.2 attains speed -- in sharp contrast to the rushhhh to speed of the previously offered (and similarly priced) A6 2.7T S-Line.
The performance issue simply means lower the final drive ratio, improve the breathing to improve the HP and torque, hire someone to reprogram the engine management system -- do whatever it takes, this engine in THIS market doesn't produce the expected levels of acceleration. In some cases it is all about bragging rights. I must assume the 255HP BMW 5x cars will out accelerate and out handle the A6. Don't give excuses and rationalizations -- put it behind you by not making it an issue any more.
Subvent the leases at exactly 36 or 39 months to make certain that your customers (now almost at 50% who lease) are always in the cocoon of The Audi Advantage.
Communicate with your customers (both from AoA and from the dealer level).
Every time I get my Audi serviced, I get a voice mail at my house during normal business hours asking for my feedback, but never leaving a call back number -- Doh!
Survey us using the web for Pete's sake. Communicate with us via the web too -- what an easy and cheap way to stay in front of the customers.
And, while I'm at it, I do understand that the snoz on the new Audis is polarizing, but I cannot believe the same is/was not true with the design of the new BMW's (the 5 is so ugly, I have to avert my eyes) -- yet there they are month after month even during bad months selling at least 3 times as many of those ooooogly 5's over a lot less ooooogly A6 (IMHO).
It looks like the U.S. industry is going the way of the British industry: Rover was the last remaining domestic car company to go under, I believe. Now it's all foreign imports or foreign ownership. It's true, as you say, that Accords, Camrys, Altimas, etc. are made here, but I don't think the domestic content of these cars is the same as in GM and Ford products. So high-paid manufacturing jobs continue to disappear. Meanwhile, people like me continue to buy Japanese cars (because I don't feel personally that I should buy an inferior product to do charity work and bail out GM), so we have met the enemy and it is us.
For $50k, xenon headlights should be standard, voice recognition, advanced key, sunroof, seat and mirror position memory, too! Leave the Sport and S-line packages as options. Maybe then, we will see an dramatic increase in sales if your suggestions for performance increase is also implemented (a must!!!).
Sorry for my rant. As a half-German, I get frustrated with my relatives inability to fully comprehend the American market. Do they not hire stateside consultants???
Jeff "The Angry Half-German American Consumer Who Wants the Most Bang for His American Dollar"
Audi would also send us these beautiful glossy magazines to create a sense of exclusive membership, yet the execution left a lot to be desired in other aspects. We received 2 or 3 mailings about the Audi credit card that allows you to accrue points (a la the GM Card), but everytime I called their 800 # to find out details, the operator couldn't answer any of my basic questions. So I would hang up and throw away the (very beautiful) mailer.
"Do they not hire stateside consultants???" Apparently not. Look how long it took Audi to make proper cup holders.
Honda
Toyota
Nissan
Mitsubishi
Subaru
Mercedes
BMW
Hyundai
If you want to get technical, many of the Big 3 makes are assembled in Mexico and Canada. How American is that?
It is currently maddening how close Audi is -- or could be -- to being so much better. The new A6 was, or so I thought, THE time to make the big move. Instead we got several good moves, to be sure, but at the price point they have done exactly what everyone has accused VW of doing with the Phaeton.
Audi has genuinuely created what would be a great car if it just wasn't so expensive -- and I am NOT talking about the MSRP.
Although I personally thought the VW Passat W8 was a big bargain, I was proven to be so very wrong. The new A6 3.2 is cut from the same MARKETING cloth as the ill fated W8. People review the choices available to them and -- as the data reveals -- choose the alternatives many multiple times more than they are choosing the Audi.
Having said that, I feel that the Audi is a car of considerable merit and in many ways is superior to the cars that are handing it its lunch. Yet as I mentioned I am a minor student of economics -- the market is saying "we don't appreciate the superiority, can't find the superiority or just plain think the Audi is too much money for too little car." From what I can tell it is all about the residual.
This is Adam Smith, more or less, speaking clearly and loudly.
Once again, I ask: Audi, are you listening?
It is, it really is, better to lead than follow. The data suggest Audi follows literally EVERY OTHER competitor -- it is, currently, leading NO ONE.
Moresthepity.
If you want to get technical there is only a Big TWO :shades: I assume you included Chrysler in your 3; but of course they are a foreign owned company.
Do they care about delivering what the customer wants?
Do they do it efficiently?
Some manufacturers (& their dealer networks) deliver what the marketplace is excited about. The rest offer rebates &/or big ad budgets.
Some dealerships make a visit pleasant. Many don't.
Delivering a vehicle (and service experience) in this price range that not only meets customer expectations, but exceeds them, is certainly possible. BMW started it years ago, but what have they done for their customer base lately? I'm told Lexus rules (my local Lexus store put me off for all time a few years ago). Infiniti tries. There's a continuim here -- where does your favourite brand fit in?
The next five years in the car business are going to be interesting, for me to watch, but for many others to endure.
I'm going to be silent (for once) regarding which portion of the auto manufacturing world I think is most likely to be successful, but I don't mind guessing which one won't. The traditional U.S. auto industry is beyond in the toilet -- unions, health care costs, junk bond ratings, etc. Stick a fork in.
It's. . .
And, later in the year, when they offer the non-quattro models, they will be relatively cheaper. Compared to what else is out there, the Audi A6 and the Infiniti M35 are two great choices. The Infiniti has more get up and go performance, probably appeals to a younger buyer who is used to buying Japanese, and wants all the bells and whistles. The Audi A6 on the other hand I think is for someone who wants a classier type of car (not that the Infiniti isn't classy, but it just is so much more a sporty sedan). The high polished wood, chrome accents are everywhere, a more refined but not modern like the Infiniti look. Something else I noticed tonight while driving in the new A6 which is cool looking...all four doors have bright led's running the length of the door halfway down the door shining down on the window controls. These are not bulbs but are a bright pure white color similar to the purpleish color leds under the seats and on the outside bottom of the mirrors that light up the ground.
If you compare these two cars above to the new Lexus GS300...which had been highly overrated by many....they both put it to shame.