Now Audi A6 goes diesel

AUDI Australia will definitely expand its turbo-diesel repertoire to a third model line when the third generation A6 goes on-sale in October.

A new V6 3.0-litre common rail-injection oil burner has been confirmed as part of a range that will also include three petrol engines – a 2.4-litre V6, an FSI 3.2-litre V6 and a 4.2-litre V8.

The A6 will sit alongside the cross-over Allroad and the newly-launched second generation A3 offering Audi’s TDI technology.

But at this stage Audi Australia managing director Graham Hardy says there are no plans to expand to any further lines with turbo-diesel power.

“If we feel we can bring an engine to the market which offers the benefits of diesel without being a substantial price premium on purchase costs we think that is like a knock-out,” he explained. “So it will be as and when we can introduce engines in segments.” Mr Hardy said Audi Australia had been questioned hard by headquarters in Germany about the logic of marketing turbo-diesels in Australia, but had stuck to its guns.

“They have questioned us, saying ‘TDI doesn’t make sense in Australia’,” Mr Hardy admitted. “But strategically - and from a future brand positioning - that’s why we want to put these things in.

“The market is not quite right, it is not quite ready, but we are prepared to walk a path that is not that well trodden at first, but signposting it, saying ‘Audi is different, Audi is prepared to not follow but attempt to lead’, even if it is with modest result and modest volumes.” The 3.0-litre unit destined for A6 produces 165kW and 450Nm in Euro-trim, but that may drop a little for Australia because of our inferior fuel.

Mr Hardy believes it will account for about 10 per cent of Audi’s A6 sales, or about 90 per annum.

That means total sales of more than 900 per year for the new A6, which would be at least triple the current car.

Mr Hardy says that increase will be achieved by targeting BMW’s benchmark 5 Series in terms of both price and specification.

“The A6 will go up in price but the competitive positioning of the cars will mean Audi is very strong at every point against 5 Series – engines, specification and so on.

“We will have a price advantage over 5 Series of three to four per cent. Our retail pricing will be lower and our price-equipment adjusted price will be better.” * Audi Australia will move from its existing headquarters in Sydney’s Homebush Bay into the Volkswagen Group Australia building in Botany at the end of 2004.

The much-anticipated move means just Hyundai Australia will be left operating out of the Homebush Bay site.

It was once the headquarters for Cycle & Carriage’s Australian automotive operations, which also at one stage included Chrysler-Jeep.

The site is expected to be sold off in the future for residential development.

While there will be some back-office economies of school for VW and Audi to exploit, brand management will remain separate entities.