We'll plug every gap - you will see, says Audi

AUDI Australia managing director Joerg Hofmann remains confident he will lead the German marque to more than 10,000 annual sales "in the next couple of years" in Australia as new models targeting niche segments come to the fore.

Dismissing the suggestion that the exodus of senior management at parent Audi AG to Volkswagen would have a detrimental effect on Audi’s future, Mr Hofmann said that having former Audi chief Martin Winterkorn head the Volkswagen Group was "good" and that the lines between Audi and Volkswagen would not become blurred.

He also said it would not hinder new-model expansion in untapped market segments such as compact SUVs, bigger and smaller sportscars and crossover vehicles.

"You will see. We will be in every segment in a couple of years. Just by filling all the segments that we have at the moment, we will grow just by the product easily by another 30 per cent," he said.

"Just look at the SUV segment – we have a Q7 but we don’t have an X3 (rival), so you can think there must be something to come, alright? "Bigger and smaller sportscars – now we have the R8, but there may be more...

"We have a Sportback on the A3 which is very successful, and there are a lot of things you can do with it. You know at the moment there is a trend for crossovers – why not getting other Sportbacks?"Both brands (Audi and VW) have their place in the market. They have their offers, they have different target groups, they work with different target groups and we are positioned above Volkswagen. There are almost no areas of conflict between the brands.

Left: R8 coupe. Below: A3 Sportback.

"I’m not entitled to answer on (Dr Winterkorn’s behalf). The only thing that I can see is that he’s a great top manager, the best that we have in the whole group, and it’s good that he is now the head of the group and it will help us as well because as the former Audi boss, now the boss of the group, that can only help us.

"If the Audi people want to move up, that means really we have the best people," he said.

But what is Audi left with? "Still another group of good people. I think we have a good base and a good pool of talented and good people," Mr Hofmann said.

Audi racked up a record 5770 sales last year and intends to achieve more than 10 per cent growth in 2007 – which would take it to around 6400 units – via new releases including the A6 Allroad (May), TT Roadster (June), the S3 (June), R8 supercar (October, priced between $260,000 and $280,000, according to Mr Hofmann) and, in the final quarter, the S5. Both the S5 and A5 are expected to account for 800 sales per annum.

A sub-$80,000 Q7 SUV, powered by a 3.6-litre V6 engine, will also be introduced later this year.

"In offering more niche models and getting in every segment, you expand your customer base. We definitely don’t lose customers, we win more and more customers," Mr Hofmann said.

"This is why I believe we can only win because Audi has still a lot of gaps at the moment in the product portfolio. Look at Mercedes-Benz and BMW – I mean, they are in every little segment, they have a model in every segment, and they still can handle it properly."Sales growth is also resting on investments in brand marketing and Audi’s national dealer network, with more than $30,000 pumped into select dealerships (including $10 million-plus in Five Dock, Sydney). New facilities will also be opened in Melbourne, Canberra, Darwin, Townsville and Orange, NSW.