Everything the company has been saying about itself is coming true, writes motoring editor Alastair Sloane
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It seems all the things Audi has been saying about itself over the past few years are panning out. It said its A4 would dethrone the BMW 3-Series as the best-selling luxury mid-range model in home town Germany. Yep, that happened in 2008.
It said it would continue to boost its share in the world's main markets as it worked towards global sales of 1.5 million units by 2015.
That happened last year too, when it sold one million cars for the first time, a 4.1 per cent global hike over 2007. Sales in the United States, Europe, Britain, Japan and Australia were up considerably, despite the economic downturn.
Audi AG chairman Rupert Stadler said that yet more new models would see the brand continue to grow in its home market of Germany (up from 7.3 per cent to 8.1 per cent last year) and in Western Europe (up 0.4 per cent to 4.8 per cent).
"Audi is presently experiencing stronger growth than any other premium brand in the region and, thanks to new models, we will maintain this dynamism," said Stadler.
"In a difficult market environment, we want to further expand our market share in Germany and Western Europe."
In the vital US market, Audi will spend 15 per cent more on brand advertising than it did last year. Its marketing people figure that spending more will help it quickly gain valuable ground on rivals who spend less.
In Australia, Audi grew 30.2 per cent last year with 9410 sales, still well behind Mercedes-Benz, which slumped 8.4 per cent to 18,540, and BMW, up 0.4 per cent to 17,263.
The positions in New Zealand were reversed. Audi finished 2008 as the leading luxury brand with 1071 passenger car sales, comfortably ahead of BMW and Mercedes-Benz. Audi also led the luxury market in New Zealand in 2007, beating long-time leader BMW for the first time.
There were the usual grumbles about this and that carmaker registering demonstrator vehicles to chase up totals in slow months and at year's end, but in the end the numbers speak for themselves.
New Audi general manager Dane Fisher believes the brand is on track to become the leading luxury nameplate in New Zealand for the long term.
"The product line-up in New Zealand is stronger than ever and the quattro offering and strong brand image fits well with New Zealanders and their lifestyle," he said.
"We have a strong relationship with Audi AG (head office) and that helps us get the right price and right specification for New Zealand. "It will also help us to hold on to a dominant position. The Audi badge is here for the long term."
Fisher, at 29 the youngest general manager in the NZ car industry, said the distributor here was getting factory support with the exchange rate.
Not surprising - this time last year the euro was worth around 52c; now it's at 40c. How long before Audi hikes its prices?
"We had a 0.5 per cent price rise on January 1, one of the smallest in the market," said Fisher. "That's another advantage of having a strong relationship with the factory.
"That will be the only price movement in the first six months of 2009, that I can guarantee.
"There might, however, be a very small increase towards the end of the year."
Audi is juggling production schedules in Germany in response to the global downturn in new car sales. It will stop building cars at its main plant in Ingolstadt for five days at the end of February.
Audi produces the A3, A4 and A5 cars as well as the Q5 SUV and bodies for the Audi TT coupe in the plant. The production halt could also be extended to Audi's smaller Neckarsulm plant, where the A6 and A8 models are assembled.
The shutdown won't affect shipments to New Zealand, where the first of Audi's all-new 2009 models, the quattro Q5, has just landed along with updated variants of the Allroad and A6 sedan.
The Q5 first appeared in public at the Beijing motor show last April, a launch that underscored the importance to Audi of the Chinese market.
Audi's first compact SUV is built on the chassis that underpins the Audi A4 sedan and A5 coupe. It looks like a scaled-down version of the giant Q7 but with more appealing styling cues, especially around the rear. The big trademark Audi grille remains, flanked by prominent headlights.
The Q5 is 4.63m long, 1.88m wide and 1.65m high, and rides on a choice of 17- or 18-inch alloys. The 2.81m wheelbase is the longest in its class and the result of wrapping the engine, transmission and front suspension in a compact package to allow the front axle to sit as far forward as possible.
Audi first used this layout in the A5 coupe, saying it was designed to improve agility and handling. It is better suited to the Q5 than the two-door A5. Others will say the same.
Two Q5 models will be available in New Zealand, both using high-tech 2- and 3-litre diesel engines. A petrol variant powered by a 2-litre turbocharged engine has been criticised in Europe as being too thirsty and is unlikely to be available here.
Audi launched the standard $99,500 Q5 with the 3-litre V6 unit, which produces 176kW and 500Nm of torque between 1500-3000rpm. An S-Line variant with more bells and whistles costs $106,500. The 2-litre 125kW/350Nm four-cylinder unit is expected in April, priced at $79,500 and $86,500.
Both powerplants are mated to an S-Tronic seven-speed dual-clutch transmission, the first time Audi has used the seven-speeder with a longitudinal engine.
It's a crackerjack match - the 3-litre powertrain on the launch vehicle was clinically efficient, offering super-smooth shifts up and down the range and helping to distribute drive from the quattro system beyond its standard 60:40 split.
At times, the traction control system appeared over-anxious, cutting in to shut things down just when the rear was getting a big light on a gravel road. There aren't many gravel roads around the Audi factory.
Inside, the smart layout, classy materials and fit and finish are typical Audi. The interior design chief is German whizz Stefan Sieffert, almost solely responsible for setting new world interior standards.
Cabin space is better than average, especially upfront, and the improved MMI interface offers a world of alphabet soup, controlling everything that opens and shuts, blinks or flashes, from the stereo, satellite navigation, air-conditioning ... whatever. It is Audi's answer to the Wurlitzer.
Behind the wheel, the Q5 is perhaps the most car-like to drive. It is accurate, predictable, agile for its size and its well-sorted damping irons out all but the worst of surfaces. Wind, road and engine noise largely stay outside the cabin.
The dynamic ruler in the luxury compact SUV class has been the BMW X3. Looks-wise, it's not a work of art but it is very efficient. The Q5 is better looking and pretty much just as dynamic, depending on what you want. The upcoming Volvo XC60 is expected to offer more of the same.
