Audi boss talking a new route

Thinks have changed a lot at Audi Australia over the past year.

When a German go-getter called Joerg Hoffman was in the driving seat at in the early noughties, he smashed the accelerator to the floor and aimed straight for the top.

The one-time army tank driver believed Audi could bulldoze its way to luxury leadership Down Under and he set out to prove it with the most aggressive sales campaign in the company’s history.

For a time, Audi flourished and both BMW and Mercedes-Benz were rattled, but the car business is a long-term game and eventually Hoffman cashed-in his success for advancement at home in Germany and things started to unravel.

Today, the Hoffman days are long gone and there is a new approach in the corner office at Audi headquarters in Sydney.

Paul Sansom is the trump in 2018 and, after a series of short-term leaders, he is here with a long-term plan and an approach that makes a U-turn on the dreams of market leadership and giant showroom numbers. It’s been just over a year since he got the top job and it’s good time to take stock and see how his plan is working.

“There was an opportunity to make some transformations. The opportunity for Audi in this market is to define and strengthen our intensity,” Sansom says as he settles down to talk with motoring.com.au

“My philosophy is that you grow by having a long-term strategy that feeds a short-term necessity. I have a finite time here. My legacy is to future-proof the brand.”

Sansom looks more like a retired rugby player than a banker, even if that’s where he began his working life at home in Britain. There is intensity to the man that reflects a need to succeed, but he’s also charming and relaxed.

Since he set up in Sydney he has been shaking things up on all fronts, from inventory to head-office staffing, dealer relationships and profitability, to the model line-up and marketing focus.

“It’s probably the most competitive market in the world,” Samson says, stating something that’s obvious to any car company CEO trying to hit any sort of sales target in Australia.

But, instead of force-feeding showrooms like Hoffman and many of the mass-market brands driving forward in 2018, he is more considered in his approach.

“The industry is obviously measured by sales numbers. And I totally get that, and I want to grow sales numbers. And we will. I want to grow.

“[But] What I took off the table was whether we were going to be number one or number two by a certain date. I just don’t want to be bound and restricted by saying we will do this by this date.”

So there it is. The key thought for the new(ish) broom.

“You have to have a really strong, customer-centric approach to the market. And you have to have a people plan.

“Loads of business plans I see don’t have a people plan. A way of defining the culture… Sales is the output of the cocktail of those things working the business,” he explains.

As Sansom rewinds on his time in Australia he talks through a range of problems he faced, from overstocking at all levels to poor residual values and customer relations. It’s clear that the drive for top-line numbers had taken a toll.

But, first, he explains that he started with NatWest Bank in the UK and worked there for 12 years before being head-hunted to Jaguar for a fleet sales job.

Then came a position as sales director at Audi UK, where his success eventually won him the managing director post at Audi in South Africa.

“We went from a very distant fourth or fifth then overtook Mercedes in around 2015. Everything was perfect around that time. I guess that put me on the radar a little bit.”

South Africa was tough, but obviously good preparation for the challenges Down Under.

“It’s a tough market there. You’ve got all these headwinds. I survived that and was going quite well.”

In Australia, Sansom ran head-on into challenges. Now, with a lot of the groundwork done, he can look back with some satisfaction.

“The opportunity with a new MD coming is that see things with fresh eyes. And some stronger brand messaging.

“The market is under a lot pressure. The brand image was under pressure. There were a lot of things. [But] I just saw it as opportunity.”

Now Sansom is confident that the pieces are in place and the sales and profitability will move up before it’s time for him to go.

“We’ve got to have a long-term vision of what we’re shooting for. We’re setting ourselves a long-term vision to be the best and most progressive premium brand in Australia. To do that in this market you’ve got to be really good.”

Sansom is promising more change and a different focus, one that’s much more about Audi than worrying about what BMW and Benz are doing.

“There will be a different brand story for Audi in Australia... [one] that’s not just talking about fabulous cars.

“It’s more of a philosophy. More of a movement — it’s more than just a product.”

And the bottom line?

“No-one is satisfied yet with where we’re up to, myself first and foremost.

“There are still lots of challenges, but both parties are feeling pretty good about where we are. I’m not thinking of going anywhere any time soon.”