Audi's Plan: Premium Image, Higher Prices

Audi wants to raise its prices and overall image to better compete with other German luxury brands, like BMW and Mercedes-Benz, the automaker announced yesterday. Right now, Audi's cars offer a slim bargain compared to similar Bimmers and Benzes. Excluding destination charges, here's how some of them compare:

• 2007 Audi A4 2.0T: $28,240 / 2007 BMW 328i: $32,400 / 2007 Mercedes-Benz C230: $29,650
• 2007 Audi A6 3.2: $41,950 / 2007 BMW 525i: $43,500 / 2007 Mercedes-Benz E350: $50,550
  
• 2007 Audi A8 4.2: $68,900 / 2007 BMW 750i: $75,000 / 2007 Mercedes-Benz S550: $85,400

Audi of America's executive vice president said the automaker wants to close the gap within five years, according to Reuters. But he said price increases will come with additional content and new designs. Audi is also looking to close the gap with promotional events that tie the brand to luxury partners like Bang & Olufsen and Ducati.

It bears mention that the base A4 and A6 are front-wheel drive, something performance enthusiasts often scorn. Models with Audi's Quattro all-wheel drive cost about $2,500 more. BMW and Mercedes competitors offer standard rear-wheel drive.

If Audi does close the competitive price gap, leave a note below on additional things – from engines to interiors – you'd like to see.

[VW's Audi Looks to Close U.S. Pricing Gap, Reuters]

Comments

A few things...

Less VW in the mix, electronics that work after 120,000 miles, better looks, less weight, and desirability. I'd rather drive a SEAT or Skoda.

I would like an Audi with less weight and better fuel economy.
If quality is up, offer a better warranty because sharing parts with VW does little to inspire confidence. That would go further towards concincing people to pay more for an Audi than press releases that say "we plan to build better cars and charge more for them."
Also, better differentiate the products; an A3 and A4 Avant look almost identical. They have most of the same mechanicals too.
Lastly, performance versions are cool but R vs RS? do something more interesting with the names or give the really fast one a giant spoiler or something so people know it is FAST.

I agree with ALL the previous comments made about Audi/VW. Audi cars get good comments in magazines, but driving them myself always leaves me wanting. QUALITY. The cars always look the part, but the quality glitches have been so consistent, I've taken VW/Audi off my list. They can raise their prices all they want, but intelligent people will always do their research and buy reputable cars.

They should focus first on QUALITY! At least it couldn't hurt. Look what it did for Hyundai....

A giant wing may be the last thing I would ever want to see on an Audi. They're supposed to be for the discriminating gentleman/lady Even their supercar is sophisticated and understated—sort of. I think that image combined with their superb technology—that amazing dual-clutch sequential transmission, the LeMans derived diesel V-12 in the Q7 (738 #ft!)—is what they should be marketing. What I'd like to see from Audi is a man's version of the TT, I like the old version but it's sooo girly; rear wheel drive vehicles especially the A4 and TT; and no relationship with VW. I'd also have to echo the comments of others: reliability is the paramount factor here.

Having a limited range of cars in the US, Audi should go with an all Quattro line-up.

Currently own an A6 2.7T w/6 speed manual. Love the car, but will not buy another unless a manual transmission is offered. Haven't owned an automatic in 18 years and not about to start now. Manumatics/tiptronics etc just don't cut it. I'd buy a new A6 in a heartbeat if the 6 speed manual is offered! Will be looking for something else if they don't. I hope Audi's listening!

I'd like several orders of quality and reliability, please. Warranties are great, but I'd rather have a car I didn't have to worry about breaking down. Audi and VW's quality has been abysmal, and VW's dealer network is awful (don't know about Audi's).

Actually Audi's biggest seller, the A4, is Germany's most reliable car. Even here in the states Consumer Reports gave it a recommendation for reliability.

Audi Has now solved its reliablitity issues with late models fairing very well. Better than BMW and especially Merc.

Also, quattro will become standard on the company's next-gen vehicles starting with next yera's A5.

So with quattro standard and reliability best in class, I think Audi will do just fine with higher (and more appropriate) prices.