Audi wants more models and sales

Audi Australia intends offering a range of 40 different models by 2015 as part of its plan to sell 15,000 cars per year.

And the new model assault is starting straight away. The company says it will introduce an additional eight vehicles over the coming months including the A5 Coupe, the new generation A4 sedan, a V10-powered RS6 Avant and an all-new A3 Cabriolet.

A small car model known as the A1 and an entry under Q7, called Q5, are also in the pipeline. Presently, Audi has around 25 models on offer.

Audi Australia is convinced it will be able to sell 15,000 cars each year Down Under, if not earlier. The company has enjoyed strong sales growth at or above 20 per cent for the past three years.

According to Audi, the maker is the fastest-growing prestige brand in Australia. The 15K by 2015 project is known internally at Audi Australia as 'Route 15'.

"If the Audi brand sells 15,000 cars then we are definitely one of the top players in the premium segment, and we want to achieve this by 2015. Whatever is available and if it makes commercial sense, we'll try to bring every new model to Australia," said Joerg Hofmann, Audi Australia managing director, at the launch of the new initiative in Sydney earlier this week.

The 20 models will be completely new or variants of new models, according to Hofmann, and not just updated engine offerings.

The A1 was revealed at this year's Tokyo motor show as the Metroproject quattro concept car (pictured) and is expected to go into production by 2009. It will serve as the new entry model for Audi and compete in the small car class.

The Q5 will compete in the compact SUV segment. The model is expected for release in Europe during 2008 but could be unveiled in concept form as early as this week's Los Angeles motor show.

Hofmann says the sales offensive will be product driven, but the company also needs to improve image and awareness of its brand, including focus on customer satisfaction and the company's dealer network in Australia.

"We identified three years ago that the [dealer] network has to be expanded and our facilities need upgrading," admitted Hofmann. "I mean, it is difficult now already to display and retail these 25 models... Plans for our model offensive brought us to the conclusion that we have to heavily invest in the network infrastructure."

Audi Australia says the total investment in new and upgraded facilities will exceed $140 million over the next few years, including almost $100 million invested by its dealer network.

The company this week announced it would spend $50 million on a new facility in the redeveloped Victoria Park precinct near Sydney's CBD. Comprising an eight-level 'Lighthouse' design, the facility (also pictured) will house new and used car sales, workshop and customer reception areas.

The site at Victoria Park in Rosebery was chosen for its convenient location and prominence. On route to Sydney's CBD from the airport, the Audi Centre Sydney will be passed by approximately 125,000 cars a day, according to Audi Australia. The land alone cost $19.6 million.

"It [the investment] took a big negotiation process with the head office [Audi AG in Germany]," says Hofmann.

"A lot of countries are in competition to get money from headquarters, and for us it was so exciting to get the $50 million for Australia."

The investment is one of the biggest ever made in an overseas market by Audi and the facility will be the largest for the brand in the southern hemisphere.

"For the time being it will be the biggest in the world," says Hofmann. "There are a few big projects in Europe as well, but ours will be earlier. It's amazing having that kind of statement. It clearly shows us the confidence from the head office in Australia."

The Lighthouse facility, designed by architect Johnson Pilton Walker, will serve as Audi Australia's head office. The company has planned space for around 25 new and 70 used cars and 20 service bays.

The building will be 26m high with 100m of frontage along South Dowling Street at Rosebery. It will be visible from the four-lane highway into the city.

"It will be a massive brand statement," says Hofmann. "Without exaggeration I believe it will become a landmark in Sydney very soon."

Hofmann says that the Lighthouse facility will serve as more than a "usual dealership". The building will host after-hours functions and serve as a "centre of life, a centre of activity" for the brand.

Recent investment includes the new Audi Penfold three-level 'Hangar' dealership in Burwood, Victoria, which was opened early this year at a cost of $11 million. Next month a 'Terminal' facility will open in Five Dock, Sydney, also costing the company around $11 million.

The Five Dock Terminal building is a first in the Audi world. Like the Lighthouse design, the structure is designed for high-density areas and incorporates showroom and workshop areas.

Audi Australia is also planning to open a Terminal facility in Canberra in the first quarter of 2008 and says it has confirmed other projects in key markets around the country.

Audi expects its national dealership network to include around 40 outlets by 2015, with a focus on "fewer, high-quality dealerships operating in key areas, rather than a multitude of smaller, less-profitable facilities".

Upcoming Audi models

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